Company: European funding available to you

Every entrepreneur knows and appreciates the support offered by the French public authorities. Yet few think of the opportunities offered by theEuropean Union, through the European Commission.

In fact, it offers a wide range of grants to finance VSEs, SMEs and start-ups via the Structural and Investment Funds.

They are distributed via the regions and various intermediaries such as financial institutions.

What are the conditions for accessing this financing?

Since 2014, it has been up to the regions to employ a large part of the European Structural and Investment Funds.

Each region is free to define its own priorities, and allocate investments as it sees fit. The European Union delegates the distribution of these funds to local authorities. As an SME manager, you can benefit from EU funding in the form of grants, loans or guarantees.

Before you apply, make sure you meet all the necessary conditions:

• Your project must correspond directly to one of the initiatives deployed in your region in line with the objectives set by the European Union.
• Expenditure incurred with the help of European aid must be strictly limited to the implementation of the project concerned.
• European funds finance all types of acquisitions, works, human resources expenses, subcontracting costs and depreciation of equipment used during the project. The grant will then be calculated according to the company's needs
• European funds cannot contribute to the early repayment of a project that has already been completed.

Very small businesses: how to obtain European aid?

Any company can submit an application in response to a call for projects launched by the local authority, or on its own initiative. For most projects, it is possible to apply online, although it is sometimes necessary to send in a paper application.

The main problem faced by business owners is the lack of a clear, designated contact person with whom to take the necessary steps, and business owners are undoubtedly lacking in information. In 2016, only 7% of business owners had taken the necessary steps to obtain European funding.

88% of files submitted receive a positive response in the industrial sector, and 52% for entrepreneurs in the service sector.

What European aid is available for small businesses?

No fewer than 83 programs have been launched by the European Union in France to finance very small businesses between 2014 and 2020.

Among those available to VSE-SMEs (if they meet the criteria listed above), the main ones are :

• The ERDF (European Regional Development Fund), whose allocations are very broad;
• The ESF (European Social Fund) is a vehicle for disseminating the European policy of economic, social and territorial cohesion;
• The EAFRD (European Agricultural Fund for Rural Development) is designed to promote the development of agricultural businesses;
• FEAMP (European Maritime Affairs and Fisheries Fund)

There's no shortage of initiatives in the fields of investment, innovation, the digital economy and new technologies.

Highlights include :

• The EaSI fund, designed to improve the job market and projects supporting thesocial economy by improving their access to financing. In particular, it offers access to loans at reduced rates;
• The H2020 fund to support business innovation aims to facilitate access to the credit market for innovative companies;
• The COSME fund, specially dedicated to the growth of VSEs, SMEs and start-ups. It provides loan guarantees and facilitates venture capital investments to support their growth. The plan also aims to provide SME investment funds with a budget of between 2.6 and 4 billion euros. The SOCAMA program enables start-ups to obtain aid to acquire goods or carry out work. Cosme contributes to the financing of the Enterprise Europe Network (EEN), which works to help companies find social and technological partners, adapt to legislation and access EU funding.

A total of 198 programs from the European Structural and Investment Funds are dedicated to very small businesses.

Aid distributed is estimated at over 10 billion euros since 2015, and European funding is without hesitation a source of financing that is still little exploited for fear of administrative complexity, or rejection.

Visit the official website of the European Union to find out more.