New Funding Opportunities

New Funding Opportunities

 

E.U AND CYPRUS / GRANT SCHEMES LAUNCHED IN 2021

 

 

A. Reinforcement of Competitiveness Scheme for SMEs* of the Manufacturing Sector and Οther Targeted Εconomic Αctivities

 

  • It has been launched on 9/2/2021 and accepts applications for submission

  • Duration: (theoretically) until 30/9/21, essentially until the budget is exhausted (€25,000,000)

  • This scheme will be proclaimed again, with a new budget (another €25,000,000) during the first quarter of 2022. 

 

Target Audience:

 

  • Existing or newly established Small and Medium Enterprises of the Manufacturing Sector (all those who manufacture an industrial product-excluding agricultural products) as well as other targeted economic activities (such as recycling of metal and non-metallic waste and scrap, dismantling services, steam cleaners and washing machines, production of movies etc.) located in the Republic of Cyprus

  • Excludes Wholesale and Retail Trade, Agriculture, Livestock and Fisheries. 

  • Franchise companies are not subsidized

  • Businesses intending to set up their business in areas of the British Bases are not subsidized

 

Other information:

 

The scheme covers planned expenditures in:

  • Construction of buildings (provided there is a Building Permit and approved architectural plans)

  • Configuration / layout of buildings

  • Purchase and installation of new machinery / equipment / electronic equipment / software

  • Expenses for the purchase of means of transport of raw materials and final products

  • Other expenses (indirect costs) 7% of the total budget, which are necessary for the implementation of the investment plan such as expenses for consultants' fee for proposal preparation, feasibility study and project management, etc.

 

• Total budget amount per business: € 20,000 - € 333,333

• Subsidy Intensity: 60%

• Maximum subsidy amount per company: € 200,000 per three years

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B . Reinforcement of New Entrepreneurship Grant Scheme

 

  • It is expected to be launched around mid-May 2021

  • Duration: 5 months or until the budget is exhausted (€30,000,000)

 

Target Audience:

 

  • Men 20-50 years old and women 20-55 years old, who want to start their own business (for the first time) in any sector 

  • Applicants should not be a shareholder in a company with more than 25% at least 6 months before submitting the application

  • Applicants should not be self-employed at least 6 months before submitting the application. They must be either unemployed or employed by another enterprise.

  • Applicants must be permanent residents of Cyprus at least 6 months before submitting the application (unless they were abroad for study or work)

  • Franchise companies are not subsidized

  • Businesses intending to set up their business in areas of the British Bases are not subsidized

  • Excludes wholesale and retail trade (e-commerce is covered), agriculture, livestock and fisheries 

 

Other information

 

The plan covers costs for:

  • Construction of premises (given that there is a Building permit and approved architectural plans

  • Landscaping / layout of buildings

  • Purchase and installation of new equipment / machinery / furniture

  • Expenses for promotion of the business

  • Other expenses (indirect costs) 7% of the total budget, which are necessary for the implementation of the investment plan such as expenses for consultants' fee for proposal preparation, feasibility study and project management, etc.

 

  • Total maximum budget per applicant (for all sectors): € 15,000 - € 120,000

 

  • Subsidy Rate: 60%

 

  • The Subsidy rate may increase to 70% if the applicant is under 30 years old

 

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C . Creation and Modernization of Manufacturing, Marketing and Development of Business in Processing Agricultural Products

 

  • It is expected to be launched in the second half of 2021

  • Duration: 3 months or until the fund is exhausted 

 

Target Audience:

 

  • Existing or newly established Small and Medium Enterprises active in the processing and marketing of agricultural products (such as juice making, olive oil standardization and packaging, egg standardization and packaging, dairy production, feed preparation, meat standardization and packaging, standardization, sorting packaging, sorting, of fruits and vegetables, etc.) and are located in the Republic of Cyprus

  • Franchise companies are not subsidized

  • Companies that intend to set up their business in areas of the British Bases are excluded

 

Other information

 

The plan covers costs for:

  • Building and / or configuration / layout of buildings

  • Purchase and installation of new equipment

  • Initial certification costs for food quality and safety management systems, if associated with project material investments

  • Purchase of mans of transport of products and raw materials within the production area (forklifts).

  • Investments in photovoltaic systems to meet the energy needs of the company.

  • Fees of consultants for elaboration of a feasibility study for the purposes of the project.

 

  • Total budget amount for Small and Medium Enterprises: € 20,000 - € 400,000

  • Total budget amount for Very Small Enterprises (companies with less than 10 employees): € 10,000 - € 200,000

 

  • ‘Grant Intensity: 40%

 

  • An intensity option of 60% will be given if the applicant chooses to submit their application under the De-Minimis option, with the maximum grant amount per company not to exceed € 200,000 per three years

 

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D. Business Digital Transformation Grant Scheme

 

 It is expected to be launched during the second semester of 2021

 

Duration: Applications are submitted electronically and examined in order of priority until the budget is exhausted

 

  • Target Audience:

 

  • All existing SMEs that want to be upgraded digitally

 

  • Newly established small and medium enterprises - only for investment proposals concerning e-commerce / store

 

Other information

 

The plan covers expenditures for:

  • Equipment required for the digital upgrade such as supply of network equipment (Routers, Firewalls, WAFs, Load Balancers), Servers (Servers, Bladeservers), Storage Networks (SAN), Gateways, Ups etc.

 

  • Off the shelf software produced for bulk purchase and license and installation on the user's computer and / or license via cloud or SaaS.

  • Specially designed software designed and developed to meet all business requirements

  • Online Store, Industrial Digitization, e-Invoicing - Electronic Invoicing, Data Analytics, Secure Payments etc.

  • Services related to Information Systems such as Software Configuration, Data Transfer (initial system setup), Installation, Staff Training etc.

  • Purchase of Services for other Digital Upgrade costs (Digital Marketing), presence on social media (Social Media), creation of videos for presentation of the company's products, creation of digital content, etc.

  • Consultant costs for preparation, submission and overall management of the application.

 

Important note: the purchase of services (including software / systems development market) from relatives up to fourth (4th) degree relation and / or affiliated companies is not an eligible expense.

 

Total allowed budget amount for the Manufacturing sectors: € 5,000 - € 50,000

 

Amount of total allowed budget for Services, Tourism and e-commerce sectors: 

€ 5,000 - € 40,000

 

Subsidy Rate: 50% (maybe 60%)