Funding

The financial contribution can be obtained without direct compensation and is not necessarily one that has to be refunded.

Non refundable contributions are a kind of subsidy, meant mainly for funding assistance compensating regional disadvantages of businesses (including tourism) in areas with structural problems. The contribution is intended to strengthen the competitive and adaptable capability of the economy and must create and keep jobs.

The development of certain regional places within the EU is based on the structural planning of the European Regional Development Fund (ERDF). For this target areas must be indicated. These target areas are numerically classified and named. An example is the often used target-2-area.

With a target-2-area we mean an area where economic development is declining or where the structural economic problems are significantly capacious.

There are three areas:

1. People

Support for individuals depends on the company’s employees, the individuals working for the company. These can be either directly hired by the company or indirectly participating in the company. Within the support for people, there is the support for set-ups, support for workshops, the target support and support for edge groups.

2. SMEs

Concerning support for retail, a public credit is known in which the public government acts as guarantor, the most common support for all funding routes. It represents all of the above
cases available. This retail support only takes place under the tread of maximum limits (support limits) by the company. These are determined by the number employees and balance sum.

3. Regions

The regions where the company will be established must be eligible. The aided investments must stay within the company for at least five years. This means that for example a vehicle is included in this arrangement. This is not the same for commercial vehicles.

The support of the regions itself however, will also play a central role. In addition there are forms of project support and business support, which can overlap with other areas.

Through business advice, for which support can be obtained, the performance and competition ability of companies must be strengthened. Besides existing so called advisory bodies on the level of the "Länder" (Landesleitstellen), the Ministry and Department of Business, Innovations and Skills (BIS) also supports business advice.