The non-repayable contributions are one of the many ways of providing benefits that public bodies put in favor of companies. A large majority of the non-repayable subsidies are in favor of newly established companies or those established no more than 5 years ago. In recent years, public bodies have been focusing more on innovation, allocating a greater amount of funds to innovative startups registered in the special section of the Chamber of Commerce.
Non-refundable calls for proposals are the most interesting for companies because they do not provide for any kind of repayment.
In the article we will address the following topics:
– Non-repayable grants for startups: what are they?
– How do non-refundable grants for businesses work?
– What are the requirements to apply for a contribution?
– How to participate in the call for proposals to get a grant?
– What does BizPlace Holding do for grant calls?
Grants for startups: what are they?
The non-refundable grants for businesses are among the calls made available by public bodies to promote and finance the birth and growth of new businesses. The support to micro-entrepreneurship in fact is one of the objectives to which both European and national funding programs tend.
A large part of the funds allocated by the #EUNextGeneration 2021-27 program provide non-repayable measures, through which we want to encourage the creation and development of new businesses that bring value in terms of innovation and employment.
Together with the support to innovation, there are also funds dedicated to entrepreneurial development in the so-called “convergence” areas, with the aim of supporting the socio-economic development of certain territories or dedicated to particular categories of “disadvantaged” groups, such as women, young people under 35, NEETs and people over 55 out of work.
It is also important to know that the main body for facilitations for startups on a national scale is Invitalia S.p.A. – Agenzia Nazionale per gli Investimenti e Sviluppo dell’Impresa (National Agency for Investments and Enterprise Development), a company owned by the MISE that deals with encouraging the development of innovative startups and micro-enterprises.
There are many calls for proposals that provide for a facilitation composed of both a non-refundable component and a subsidized rate. In this case, it may happen that the call provides for only partial repayment of the capital loaned or combines the subsidized financing with a non-repayable interest rate subsidy.
How do non-repayable contributions for businesses work?
One of the first steps to be taken is to identify if it is possible to access the subsidized financing for businesses by reading the implementation announcement. Within the announcement it is made explicit which categories of companies or entrepreneurs can benefit from the facilitation. For example, there are notices aimed only at young people within a specific age range – usually under 35 – or only at women to encourage female entrepreneurship projects, or even only at NEETs.
The geographic area where the project is to be developed is also very important as some calls, such as regional ones, provide for the funding of projects developed in limited geographic areas at a regional level.
There are also contributions available for those who want to open a business in a disadvantaged area, such as the call Resto al Sud, also managed by Invitalia, aimed at under 55s who reside in certain regions (Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, Sicily or in the 116 municipalities included in the area of the earthquake crater of central Italy); or for people who move their residence to these areas within 60 days of the positive outcome of the preliminary investigation.
What are the requirements for requesting a contribution?
There are several requirements that a company must meet in order to have the possibility to access public funds and, specifically, to apply for a grant.
Requirements can be defined as particular characteristics that individuals or legal entities must have in order to access public funds.
Specifically, usually, the requirements are the ATECO activity code, since some calls for proposals can foresee the exclusion of certain categories; age limits, since they can be addressed to certain age groups; territorial limits, since some calls for proposals are specific for businesses that have their headquarters in certain regions.
Finally, it is possible that some calls for proposals require a startup to be registered in the appropriate register at the relevant chamber of commerce, while others, especially those aimed at aspiring entrepreneurs, do not require registration with the Chamber of Commerce or require it to be postponed until receipt of the funding resolution.
How to participate in a call for proposals to obtain a non-repayable contribution?
The first step in participating in a call for a non-refundable contribution is to monitor the publication of measures by the various public bodies, where you can find what you are looking for.
Once you have identified the call that meets your needs and verified the basic requirements you have, you can proceed with the preliminary phase and the processing of all the documentation necessary for participation in the call.
In most cases, calls for proposals require a proper business plan that include a detailed business plan in both qualitative and quantitative terms, a cost plan and the compilation of further documentation to support the application.
It is important to note that the amount allocated to each call for proposals is limited, so it may run out even before all requests can be met.
In general, it is always expected that there will be a special committee to evaluate the applications received for a call, which will judge and select the projects that meet the requirements and, consequently, will obtain funding.
What does BizPlace Holding do for grant calls?
BizPlace Holding, a financial advisory firm experienced in equity, debt and debt financing, is responsible for researching, identifying and studying all the grants targeted to companies and communicates their existence to its customers through all channels of communication.
BizPlace Holding accompanies the companies in the preliminary phase starting from the drafting of the initial documentation, business and cost plan, until the final reporting. The subsidized finance team has structured an automated process of initial fast check that allows for the immediate verification of the financial feasibility of the project and assesses any improvements to be made to increase the probability of obtaining the funding itself.
If you need clarifications or want to receive more information do not hesitate to contact us!
The BizPlace Team