Grants and subsidies are included in the European funds intended for the development and growth of companies, among others.
Types of financing
First of all, we must know that there are different ways of managing EU funding :
Direct management : the European Commission itself manages the project budget.
Indirect management : funding programmes are managed indirectly when they are list of contact numbers in philippines implemented by non-EU countries, international organisations, development agencies or other bodies.
Shared management : The European Commission delegates the management of certain programmes to EU countries under shared management agreements.
Grants
They finance projects that contribute to EU policies . They are awarded to both private and public organisations, and sometimes exceptionally to individuals. Grants are a form of complementary financing since the European Union does not finance 100% of the projects.
These grants are awarded through calls for proposals proposed by the European Commission, which is the general procedure. However, they can also be awarded through prizes.
Loans, guarantees and capital
How is this financing provided? Through local financial institutions (banks, capital investors, etc.). These entities determine the conditions of the financing, from the amount and duration to the interest rates and commissions.
Subsidies
They are managed directly by the EU Member States.
Awards
Winners of Horizon 2020 competitions receive prizes, also known as challenge prizes or incentive prizes.
Subjective scope
EU funding is available to citizens , organisations , businesses , local authorities and governments . Each funding programme contains a set of eligibility criteria, and more comprehensive criteria are established for each call for proposals.
SMEs (small and medium-sized enterprises) can benefit from European Union aid through grants, loans and sometimes guarantees.
NGOs are also eligible for European funding, provided that their activities directly support EU policies.
Young people (aged 13-31) such as Erasmus+ and the European Social Fund. There is also the Youth Employment Initiative programme which supports young people who are neither studying nor working and who are located in regions with a youth unemployment rate of over 25%.
Researchers: Special programmes and other avenues of support are available to them. For example, the EU has the Horizon 2020 programme, which is the largest research and innovation programme at European level.
Farmers: The best-known programme is the CAP (common agricultural policy) although there are many others. The CAP is a direct payment to farmers. Member States regulate the conditions of aid and are responsible for managing the funds in their own territory.