Types of support, cumulation and the "de minimis" principle

Whether you are starting a business or growing it, finding out how the public authorities can help you succeed is essential. By exploring the different support options available, you can boost your project and achieve your goals faster.

Under what circumstances are public grants available? 

Companies, as a rule, should be self-sufficient and not dependent on public aid. This is the basic premise of the community guidelines on state aid. It does, however, provide for different exception systems, particularly benefiting small and medium-sized enterprises, as well as specific types of expenses such as research and development and investments.

Therefore, the State (whether federal, regional or at any other level of power, from local to supranational) can support companies selectively and intermittently. Depending on the term one wishes to use, subsidies, bonuses or grants often relate to specific categories of expenses: investments, recruitment, consulting, training, export, R&D, environment, etc.

A range of support actions

The public authorities have an array of tools at hand to facilitate the implementation of certain projects. These range from a basic grant to various fiscal mechanisms (tax credits, exemptions, additional allowances, etc.) and parafiscal mechanisms (reduction of social security contributions, etc.) as well as the provision of hosting solutions (citydev.brussels, business centres, incubators, etc.), consulting services (local economy offices,  hub.brussels, etc.) or financing solutions (Guarantee Fund, finance.brussels, etc.).

Is it possible to combine all this?

It would be too complex to go into the details of all the many overlapping scenarios, but keep in mind that the same expense cannot generally be subsidised twice… However, distinct expenses within the same project may be subject to distinct, complementary support.

What about European conditions?

There are several issues concerning community guidelines for State aid. However, public authorities can still grant aid without worrying about its compatibility, as long as the cumulative amount does not go over €300,000 in a 3-year timeframe. This is what is known as "de minimis" aid" (PDF). This is why many grant application forms include a box for "grants obtained during the current year and during the previous 2 years".

The icing on the cake?

Although this is not the purpose, public grants often generate a deadweight loss effect. They are not essential to the execution of the project. In addition, it is recommended to avoid taking them into account in your financial forecasts. Nevertheless, there are instances where the rates of intervention or the funding amounts are substantial, making grants a determining factor in the successful execution of a company project. Whether you are setting up a company, or developing an existing one, it is a good idea to find out how the public authorities could support your project.