Are you planning to expand your business and considering using grant support? Then you should know what the aid rate means and how it affects the total amount of the grant. This article provides an overview of the key factors that determine the aid rate – from the size of your company, to the location of the project, to the specific conditions of individual grant calls. We will also focus on the notion of project sustainability, i.e. the obligations that arise for the recipient of grants after they have been awarded. The topic is important not only for those who are going to apply for a grant, but also for anyone who wants to understand the rules and risks associated with public funding.
What is the aid rate and what does it actually mean?
You may have wondered what the term aid rate means. It is not that complicated. The aid rate is the percentage of the grant. While this aid rate varies between grant programmes, it may also vary within a given programme depending on the type and size of the applicant entity. For some grants, the location of the project also plays a role.
More support for smaller firms and the public and non-profit sectors
In general, public and non-profit projects, including R&D or environmental projects, are eligible for a higher-percentage grant. Projects in the area of entreprise have a lower aid rate. Among entrepreneurs, the size of the company or group of companies, to which the applicant belongs, usually plays a role. Here, the smaller the size category of the enterprise, the higher the aid rate.
It also depends on where you are implementing the project
The territorial aspect only plays a role in selected grant programmes. For many of them, the territory of the capital city of Prague is completely excluded, with support at 0% there. For some grant programmes, the aid rate reflects the categorisation of regions according to their development, which is set primarily according to GDP/capita.
In the Czech Republic, the so-called less developed regions include the Karlovy Vary, Ústí, Pardubice, Liberec, Hradec Králové, Olomouc, Zlín and Moravia-Silesia regions. The remaining regions, i.e. the Central Bohemian, Pilsen, South Bohemian, South Moravian and Vysočina regions, belong to the so-called transition regions. If the place of implementation plays a role in a given grant programme, projects implemented in less developed regions have a higher aid rate than projects implemented in transition regions.
Project sustainability: What awaits you after the grant is paid?
The word sustainability is widely used nowadays and most of you probably have your own idea of what it means. But what about sustainability and grants? Sustainability ≠ sustainability! In the world of grants, the concept of sustainability is always linked to a specific project and is therefore about the sustainability of the project.
The sustainability of a project is an obligation that arises for the beneficiary of a grant in connection with its award. You can find out whether this obligation applies to your project in the rules of the grant call, under which you wish to implement the project. This does not apply to all grant projects. If you use the services of our grant experts, you will of course be informed of this obligation in due course.
What exactly does sustainability mean?
The sustainability of a project is the period of time during which the beneficiary of the grant must keep the outputs and results of the project unchanged, often available free of charge to the public. The specific definition of sustainability varies according to the type of grant call and is defined in the grant agreement.
During this period, the recipient of the subsidy must guarantee cooperation with the subsidy provider. For some types of grants, the beneficiary is obliged, for example, to submit sustainability reports (most often for each year of the project’s sustainability) or to comply with publicity rules. Publicity for grant projects means the obligation to inform the public that the project has been financed from public funds and is binding on the beneficiaries of the grant. The specific design depends on the amount of funding, the type of project and the specific call, but usually requires, for example: the placement of logos and information about the funding on the website or in various outputs, the installation of information boards or posters, and the use of well-defined logotypes.
When does it arise and how long does it last?
The sustainability period usually lasts 5 years from the date of completion of the physical implementation of the project, or starts after the date of receipt of the final payment. However, it can be shorter or longer (e.g. 2 or 10 years) and compliance with it is usually subject to control by the grant providers.
Failure to fulfil obligations related to project sustainability is usually penalised by the return of part or all of the grant.
And then what?
If the subsidy was for getting certain equipment and that equipment did not reach the end of its life after the project ended, the subsidy recipient can dispose of it as they see fit.
If the grant was for the provision of a particular service, the offering of that service by the beneficiary may be discontinued, etc.
Use help from professionals!
You should now have a clearer understanding of the area of grant drawdown. Still unclear about the level of support and sustainability of the project? Never mind. Contact us, we will help you. Our experts will find a grant title suitable for your company and your financial plan and guide you through the entire process of preparing your grant application. They will provide the preparation of the grant application including all relevant annexes, all communication with the relevant authorities during the preparation and approval process of the application and assistance in the preparation and subsequent control of the tender procedure for the project supplier.
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