The Impact Of Financial Difficulties On Eligibility For Funding
The issue of research grants is of crucial importance to many companies looking to drive innovation and strengthen their competitiveness. However, an important aspect that is often overlooked is that companies that are in a financially precarious situation can, under certain circumstances, be excluded from this funding. This can have a significant impact on the company’s long-term innovation strategy and financial well-being.
Companies in difficulty – impact on eligibility
Companies that are classified as “in difficulty” run the risk of losing eligibility for the research allowance. This classification is based on EU state aid rules, which set out specific criteria. The decisive factors include a high level of debt, repeated losses and a low equity ratio. These financial indicators can restrict or even prevent access to subsidies.
A practical example illustrates the situation: during an internal audit, a company found that it was not considered to be “in difficulty” in the 2019, 2020 and 2023 financial years. In 2021 and 2022, however, the company was in a financially strained situation. As the years 2020 and 2021 were subject to special regulations due to the coronavirus pandemic, the company was able to apply for the research allowance for 2020 and 2021. However, this was not possible for 2022, while the allowance could be claimed again in 2023.
This video explains when companies can and cannot claim the research allowance and what the exceptions are. Find out how a careful review of the financial situation enables a company to specifically determine for which years the research allowance can still be claimed. A must for companies that want to make the most of their funding opportunities despite financial challenges.
This example shows how important it is to carefully monitor the company’s financial situation and, if necessary, initiate stabilization measures at an early stage. This is the only way to ensure long-term eligibility for the research grant.
Comprehensive support is essential in this process. Companies facing financial difficulties should not hesitate to seek professional assistance. Having the right tools and legal advice at hand is crucial to navigate through the complex requirements of subsidy assessments.
Seize the opportunity for maximum funding. If you have questions about eligibility, our experts are here to help – reach out and secure what your company is entitled to. Don’t leave any potential untapped!
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