In our previous blog post, we already discussed how growth-oriented micro and small enterprises can obtain support for well-planned, tangible developments in the four most disadvantaged regions of Hungary - Southern Great Plain, Southern Transdanubia, Northern Great Plain and Northern Hungary - as well as in the municipalities of the Free Enterprise Zones (FEZ).
The GINOP Plusz-1.2.4-25 call for proposals had already offered a favourable opportunity for equipment procurement, real estate development, IT investments and other business development purposes. However, the latest amendment to the call has made the application conditions even more favourable and flexible in several respects. Let us take a look at the most important changes.
1. The available funding amounts have increased
One of the most important elements of the amendment is the change in the amount of funding that can be requested:
- the minimum amount of support has been reduced from HUF 5 million to HUF 4 million,
- the maximum amount of support that can be requested has increased from HUF 120 million to HUF 150 million.
The advance payment conditions have also become more favourable: the advance may still be up to 50% of the awarded grant, but its upper limit has increased from HUF 60 million to HUF 75 million.
2. The range of eligible applicants has been expanded
As a result of the amendment, businesses engaged in TEÁOR 4730 activities, i.e. retail sale of automotive fuel, have now also been included among eligible applicants. In practice, this means that companies operating petrol stations are now also able to apply for support.
3. Greater flexibility in planning project costs
The rules governing the composition of project costs have also been eased, which may provide applicants with significantly greater flexibility. Under the previous rules, the cost of acquiring new equipment and machinery, as well as establishing new technological systems, had to account for at least 30% of the project’s total eligible costs. This ratio has now been reduced to 10%.
This may be particularly beneficial for businesses planning more complex developments, where, for example, real estate investment, digitalisation or other related activities would account for a larger share of the budget.
4. Supporting activities can now be chosen more freely
Another important change is that it is no longer mandatory to implement every activity supporting the professional implementation of the project. These may include, for example:
- project management,
- general overhead costs,
- consultancy services,
- inventory procurement,
- mandatory information and publicity costs,
- and, in the case of support above HUF 50 million, the costs of horizontal activities.
Under the amendment, these are optional, although naturally only those items may be claimed that have been included in the project plan in advance.
5. A more favourable deadline for fulfilling the mandatory commitment
The project still requires the use of an organisational development service on one occasion; however, the deadline for fulfilling this requirement has also become more favourable. Previously, this had to be completed by the physical completion of the project at the latest. Under the amendment, however, sufficient time is now available until the approval of the final payment claim. This change may ease both the administrative burden and the practical implementation of the project for businesses.
6. The minimum threshold for certain eligible activities has also changed
The range of eligible activities remains broad. Among others, the following development goals may still be financed:
- technological development (equipment procurement),
- infrastructure and real estate investment,
- the use of renewable energy sources,
- digitalisation and IT developments,
- training and consultancy.
In connection with technological development, a further easing is that the minimum net value of equipment procurement has been reduced from HUF 500,000 to HUF 300,000.
Significant funding is still available
Out of the total budget of HUF 150 billion, HUF 84 billion is still currently available to finance new applications. This means that the opportunity remains open for those micro and small enterprises that are now planning to implement their developments.
Summary
The amendment to the GINOP Plusz-1.2.4-25 call for proposals has clearly shifted the conditions in a direction favourable to applicants. The lower minimum amount of support, the higher maximum grant amount, the broader range of eligible applicants and the more flexible cost planning rules together make this development funding opportunity accessible to even more businesses.
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