In Europe, we spend nearly €400 billion per year on business subsidies. That's a huge amount of money from which you as a startup, scale-up, or SME can also benefit. However, if you have no experience with subsidies, it can be quite difficult to find them. That's why we explain the basics of subsidies in this post: from what it is to where you can find them and how to secure them.

The Basics: What is a Subsidy?

A subsidy is a form of financial aid or support. Sometimes it is given to a sector, but most often to companies and organizations. Subsidies are provided by the government to companies and organizations that are doing something we find important but are not (yet) earning enough money to fund it themselves. This applies, for example, to companies that are developing a new product. Companies often incur a lot of costs while not yet making any earnings. Such companies can apply for an R&D subsidy or deduct the costs for personnel involved in this from taxes.

There are also many subsidies to reward certain behaviors: for example, if you make your business premises more energy-efficient. A part of the costs you incur for this will then be paid by the government.

Subsidies can come from various sources. A large part of the municipalities and provinces provide subsidies. In addition, the national government provides subsidies, especially through the Netherlands Enterprise Agency. From Europe, many subsidies are provided by various funds and institutions, such as the European Commission, agencies, the European Investment Bank (EIB), and European Investment Fund (EIF), and various Directorates-General. For some European funds, such as the European Regional Development Fund (ERDF), national and regional governments are responsible for selecting and managing projects.

How Does It Work?

Finding and successfully applying for a subsidy is often (not always!) a fairly complex and time-consuming process. Generally, the higher the subsidy requested, the more time it takes to successfully apply for it.

Identify the Right Subsidy

Research: Start with thorough research on available subsidies that match your project or organization. Use official EU websites and national government portals for this.

Criteria: Carefully assess the eligibility criteria to ensure that your project or organization qualifies.

Tip: Whatsub makes finding subsidies for your project or company much easier. You can sign up here.

Understand the Subsidy Conditions

Read the Guidelines: Each subsidy program has detailed guidelines that explain how to submit an application, what documents are needed, and what the evaluation criteria are.

Questionnaire: Some programs require you to first complete a self-assessment or questionnaire to assess your eligibility.

Preparation of the Application

Project Proposal: Develop a clear and compelling project proposal that describes the objectives, activities, expected results, and impact of the project.

Budget: Prepare a detailed budget that includes all cost items to be covered by the subsidy. Ensure your budget is realistic and in line with the subsidy conditions.

Partnerships: For some subsidies, especially those focused on collaboration and networking, you may need to involve partners from different EU member states. Start building these partnerships early on.

Submitting the Application

Deadline: Ensure you submit the application before the deadline. EU subsidy calls have strict deadlines that are rarely extended.

Online Portals: Many applications need to be submitted through specific online portals, such as the Funding & Tender Opportunities Portal of the European Commission.

After Submission

Evaluation: After submission, your application will be evaluated based on predetermined criteria. This process can take several months.

Feedback: Regardless of the outcome, you will receive feedback. If your application is not successful, use this feedback to improve future applications.

Subsidy Management

Award: Upon successful application, you will receive an award letter or agreement that you must sign. It contains the terms of the funding.

Reporting: Throughout the project, you must regularly report on progress and the expenditure of subsidy funds, in accordance with the requirements of the subsidy program.

Tips for Success

• Start Early: The process from finding a subsidy to submitting an application can take a long time. Therefore, start your preparation well in advance.
• Details: Pay attention to detail in your application. Ensure all documents are fully and correctly completed.
• Consultants: Consider hiring a subsidy consultant if you are unsure about the process or if you want to maximize your chances of success.

What to Watch Out For?

When searching for subsidies, it's crucial to:

• Match Your Goals: Ensure the subsidy aligns with the objectives of your project.
• Eligibility Criteria: Carefully review the requirements to avoid wasting time on unsuitable options.
• Deadlines: Keep track of application deadlines to submit your proposal on time.
• Documentation: Prepare all necessary documents, including project proposals, financial statements, and any other requested information.

Consultants and Their Role

Subsidy consultants can offer assistance in navigating the complex subsidy landscape. They provide services such as:

• Identifying Opportunities: Helping you find subsidies you might not have discovered on your own.
• Application Assistance: Guiding you through the application process, ensuring all requirements are met.
• Maximizing Success Chances: Offering advice on how to improve your application's chances of success.

Consultancy Costs

Hiring a consultant can be costly, with fees varying based on the consultancy's reputation, the complexity of the subsidy application, and the potential subsidy amount. Some consultants charge a fixed fee, while others may take a percentage of the obtained subsidy. Despite the costs, the expertise and potential increase in successful applications can justify the investment for many organizations.

Conclusion

Securing a subsidy can be a turning point for projects focused on innovation, sustainability, and growth. Although the process may seem daunting, resources like Whatsub.co and professional consultants can significantly simplify the process and improve your chances of success. Remember, the key to securing a subsidy lies in thorough research, careful preparation of the application, and sometimes expert guidance.