Joint Task "Improvement of Regional Economic Structure" (GRW) (RIGA) – Commercial Economy

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Who is funded

This funding program targets commercial enterprises, including the tourism sector, as well as non-profit, non-university, business-related research institutions in the Free State of Saxony. The aim is to strengthen the competitiveness and adaptability of the Saxon economy, create or secure permanent jobs and training positions, and compensate for regional locational disadvantages. Additionally, transformation processes towards a climate-neutral and sustainable economy are to be accelerated.

What is funded

The funding program supports a wide range of investment projects in commercial enterprises and research institutions. This includes, among other things, the establishment and expansion of business premises, diversification of production, modernization of production processes, and CO2-reducing investments. For research institutions, investments in the establishment and expansion of research infrastructures are funded. Both capital expenditure-related and wage cost-related grants are possible, although certain cost categories are not eligible for funding.

Type and Scope of Funding

Funding is provided as project funding in the form of a grant, either capital expenditure-related or wage cost-related. Maximum aid rates vary depending on company size, funding area, and specific sustainability evidence, and can be up to 50 percent for small enterprises. For research institutions, the funding rate is 50 percent. Projects must generally be implemented within 36 months.

Conditions and Requirements

To receive funding, applicants must meet a number of conditions. These include the creation or securing of permanent jobs, a contribution to ecological sustainability, and secured overall financing of the project with a minimum share of own contributions. In addition, special rules for de minimis aid and exclusion criteria must be observed.

Application Process

The application process for GRW funding in Saxony is coordinated and processed by the Sächsische Aufbaubank – Förderbank – (SAB). Applicants must submit their application before the start of the measure. The granting authority decides at its due discretion and involves an internal coordination committee for larger or more complex projects. There is no legal entitlement to the funding.

Legal Basis

Funding is based on a guideline from the Saxon State Ministry for Economy, Labour and Transport, which in turn is based on a comprehensive collection of national and European legal bases. These include Article 91a of the Basic Law, the GRW Act, and various EU regulations on aid and regional aid.