Business Start-Up Subsidies
Final application term is July 31, 2022
Modifications to the Business Start-Up Subsidies measure:
- The arrears to SODRA will not be checked until 31 December 2020.
- From 1 April, the compensation under the measure will be paid on the monthly basis. The compensation funds will be transferred to the project promoter no later than the 5th day of the second month following the reporting calendar month (for example, the salary calculated in April, which must be no lower than minimum wage, will be reimbursed before 5 June).
- All existing grant agreements are subject to a reimbursement period of 18 months instead of the 12 months previously provided.
Please note that under the Business Start-up Subsidies measure, no compensation will be paid to companies for those employees who receive downtime or post-downtime subsidies provided by the Employment Services. The payment of compensation under the Business Start-up Subsidies measure for these employees will be resumed at the end of the period of payment of the Employment Services subsidies, however, no longer than 18 months from the date of signing the grant agreement.
What are the benefits?
The recipients of soft loans under the financial instrument Entrepreneurship Promotion Fund 2014–2020 financed by the European Social Fund (EPF2) are eligible for compensation of labour costs for every employee working under an employment contract who will be paid at least the minimum wage. This will make it easier for entrepreneurs to consolidate their market position, especially during the start-up phase.
What companies are eligible?
Micro or small companies and natural persons operating as sole proprietors or under a business certificate which meet the status of a SME under the SME Law and are EPF2 borrowers.
What is the maximum amount?
The fixed monthly rate of partial compensation of labour costs is set at EUR 498.48 and the minimum availability period is 12 months.
|EPF2 borrower||Eligible part of fixed rate|
A priority group is a group of persons encountering labour market or business organisation difficulties, i.e., unemployed persons registered with the territorial labour exchange for at least 6 months, disabled persons, persons under 29 years of age, persons above 54 years of age, women and those who create and/or will create “green” jobs.
In total, up to EUR 8,000,000 of European Social Fund funding is allocated for the implementation of the projects.
How does it work?
To take advantage of the instrument, an application must be submitted to Invega. Wages will be compensated monthly.
How is the amount of compensation calculated?
For example, if a company had 5 employees between January and March 2020 whose gross wages amounted to EUR 607.00, however, one employee was on an unpaid leave in February and his/her calculated wage was EUR 400.00, the amount of the employee wages eligible for compensation shall be calculated as follows: 498.48 x (4*3+1*2) = 6,978.72. This amount shall be multiplied by 0.75, if the applicant belongs to a priority group or by 0.5, if the applicant does not belong to a priority group.