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ΕΠΙΧΟΡΗΓΟΥΜΕΝΑ ΠΡΟΓΡΑΜΜΑΤΑ

Second Cycle "Processing - Supply Chain" DEVELOPMENT LAW 4887/2022

May 19th 2023 8:07pm

The 2nd Cycle for the "Processing - Supply Chain" Status of the Development (Investment) Law 4887/2022 by the Ministry of Development and Investments has been published. [here] 

Applications for participation run from June 1, 2023 to Friday, December 29, 2023, on September 29, 2023. The evaluation is comparative (no priority order) while the results of the Evaluations are expected to be immediate (45 days from the end of the Submission cycle).

The program amounts to 150 million Euros (75 million Euros in the form of a Grant and 75 million Euros in the form of a Tax Exemption) and supports investment projects belonging to the following sectors:

  • Manufacturing / Manufacturing &
  • Supply Chain (Logistics).

Expenditures for Buildings and Landscaping, Machinery and Mechanical/other Equipment are subsidized. Intangible costs, salary costs as well as consultancy fees and studies are also supported (eligible costs are described below).

 


The subsidy rates follow the New Support Charter (2022 - 2027), where small/very small businesses are increased by 20%, while medium-sized businesses are increased by 10%. The maximum Support can be up to 75%, either as a grant or as a tax exemption (subject to conditions).

The granted incentives are the following:

  1. Tax exemption.
  2. Subsidy.
  3. Leasing subsidy.
  4. Subsidizing the cost of the employment created.

Investment projects start from 100,000 euros (net value) depending on the size of the business. The object of each investment must concern the Creation of a new unit, or an Expansion/Modernization or a Fundamental change of the entire production process of an existing unit. The evaluation is based on specific quantitative criteria (discussed below) where a proposal must receive at least 50% to be included in the tables to be evaluated.

 


New Additions to the Development Law

The New Law includes new procedures, such as:

  • Sole Proprietorships are not eligible - except for minimal exceptions (eg Agricultural Product Processing/Agrifood Investment Projects with a maximum investment project of 200,000 Euros).
  • The results of the evaluations are announced within 45 days of the end date of the scheme.
    Applications for projects over 700,000 euros require a certification report signed by a member of the Hellenic Chamber of Commerce, registered in the National Register of Certified Appraisers (covered by our company).
  • The publication of each announcement is expected to have a fixed annual cycle (either for cases of immediate or comparative evaluation). No extension of Application Submission is foreseen.
  • There is a possibility of an intermediate phase grant during the implementation of 25% of the project (through a Chartered Accountant's report).

 

PRESS RELEASE  Ι MINISTRY WEBSITE  Ι  GOVERNMENT GAZETTE 3292/18.5.2023

[MAP % OF INVESTMENTS 2022]  Ι % OF SUBSIDY BY AREA  Ι  ELIGIBLE BUSINESS ACTIVITY CODES

 

The Investment Center (Business Consultants - NSRP Consultants) provides complete and comprehensive support, from the first eligibility check, the estimation of the expected score (pre-assessment) as well as the preparation - submission of an excellent business plan which will yield the maximum possible score. With over 10 years of experience, we fully undertake the integration and support of businesses.

 

 
More information: +302108028330+302810823002, (info@kei.gr).
 

☆ More than 10 years of experience in Business Upgrade support ☆
NSRF Advisors: PEP, OAED, Tourism NSRF, D.M.A., Development Law☆

The high success rates in the recently sponsored programs are the guarantee of the excellent support from our office.

 


 

"Detailed Information on the "Manufacturing - Supply Chain" Regime"

 

⬢ Basic Entry Requirements

⬢ Eligible business types - Business Activity Codes

⬢ New Map and how it is distributed

⬢ Subsidized Expenses

⬢ Minimum Investment Amount

⬢ Evaluation Criteria

⬢ Indicative Approved Projects 

 

 

⬢ Basic Entry Requirements

Beneficiaries of the aid in the Development Law are companies (existing, under formation, under merger) that are established or have a branch in Greek territory and have the form of a commercial company (AE, EPE, IKE, OE, EE).

The following forms are also eligible: Social Cooperative Enterprises (SOEs), Agricultural Cooperatives (AS), Producer Groups (PO), Agricultural Corporate Partnerships (AES), enterprises that operate in the form of a consortium with the condition of registration them in GEMI.

Sole Proprietorships are no longer eligible - except for minimal exceptions (eg Agricultural Product Processing/ Agri-Food Investment Projects with a maximum investment project of 200,000 Euros).

Applications must necessarily relate to one of the following:

  • Create a new unit.
  • Capacity expansion of an existing unit (certified by official data).
  • Diversification of unit output into products or services not produced before.
  • Fundamental change of the entire production process of an existing unit.
  • Acquisition of all assets from a closed business establishment and the purchase is made by an investor unrelated to the seller.


In order to join a company, it is necessary that the subsidized project (purchase of machinery, payment of advances, etc.) has not started in advance, before the submission of the Application. Also, problematic companies, as well as those that have relocated to the place of investment where the subsidized project will take place in the last 2 years, are not included.

 

 

⬢ Eligible business types - Business Activity Codes

The productive sectors subsidized by the Investment Law in the "Processing - Supply Chain" regime include investment projects, which fall into the field of production and processing of products, processing of non-agricultural products, as well as logistics services.

Detailed Specialization of eligible Business Activity Codes is available here.

  • The Manufacturing sector includes crafts, workshops, processing units, and businesses related to production and manufacturing, product processing or standardization units, bakeries, confectioneries, carpentry, meat processing units, bottling units, aluminum and iron units, etc.
  • The Supply Chain sector includes storage units - logistics, transport services with supply chain management to third parties, etc.

    In case of establishment, expansion, modernization of supply chain service units, a necessary condition, if they do not exist, is the implementation of investment projects for the installation and commissioning of integrated IT and communications - telematics systems, to support storage, loading and unloading and general management of materials - goods.
    In the case of a group, the provision of services to companies of the same group cannot exceed 30% of the total services provided.

 

⬢ Subsidy Amount (New Map of Regional Aid)  and how it is distributed 

Subsidy rates (subsidy aid, tax exemption) vary according to the size of the business and according to the Region in which the investment plan is implemented. Investment projects start from a minimum amount of 100,000 EUROS (except for Cooperatives, COINSEP etc. where the minimum is 50,000 EUROS).

Small and very small enterprises are provided with all kinds of support, including the subsidy, while medium and large enterprises are provided with the incentives of tax exemption, leasing subsidy and wage cost subsidy (except subsidy).

[NEW % REGIONAL AID MAP]

Small businesses receive 80% of the aid of the above map when it comes to grant, except for certain "special categories" where they receive 100% of the aid of the above map. In the event that instead of a grant, a tax exemption is requested, then they receive 100% of the aid of the above map.

Medium and large enterprises get 80% of the above map boost when it comes to tax exemption, except for some "special categories" where they get 100% of the above map boost. No aid is provided in the form of a grant.  

 

Special Categories of maximum aid (100%) of the Chart

In the following cases, the grant can reach the maximum subsidy percentage of the Chart (that is, 100% of the indicated percentages and not reduce them to 80%):

Investments implemented in the following areas:

  1. Mountainous areas, according to the EL.STAT categorization (except for the Municipal Units that are part of the urban complex of Athens),
  2. Border areas, i.e. areas at a distance of thirty (30) kilometers from the border,
  3. Island areas, i.e. islands with a population of less than three thousand one hundred (3,100) inhabitants.
  4. Areas affected by Natural Disasters.

In detail the regions of the Territories with the Maximum Percentages of Aid per Region.

Business investments concerning cases where:

  1. They are implemented in Industrial and Business Areas (B.E.P.E.), Business Parks (E.P.), excluding Business Parks of Intermediate Level of Organization (E.P.E.B.O.), Technology Parks and Innovators' Reception Pockets of Activities (THYKT.) and to Organized Receptors of Manufacturing and Business Activities (O.Y.M.E.D.) and do not concern the modernization or expansion of existing structures of the aided enterprise,
  2. They are implemented in buildings classified as preserved,
  3. They relate to the re-operation of industrial units, which have ceased operation. The value of the fixed equipment of the industrial unit, which is to be reopened, must cover at least fifty percent (50%) of the supported cost of the investment plan.

 

⬢ Subsidized Expenses

Almost all costs related to the construction/modernization/expansion of a facility/unit are eligible.

Indicative Subsidized Expenses:

  • Construction, expansion, modernization of building facilities and surrounding area.

  • Purchase of new machinery and other equipment, Technical Installations.

  • Purchase of building and equipment for discontinued operations.

  • Intangible costs (certifications, software systems, IT equipment, etc.)
  • Special Expenses (excluding Regional Aid) with specific limitations:

      • Consulting Services
      • Remediation of contaminated sites
      • Recycling and reuse of waste
      • Vocational training
      • Participation in Trade Fairs

     

  • Leasing of new machines, which will be purchased at maturity.
     
  • Technology transfer, licenses, patents, know-how.

  • Wage cost of new jobs.

[SUBSIDIZED EXPENSES] and SPECIAL EXPENSES (excluding Regional Aid) in detail.

 

⬢ Minimum Investment Amount

The minimum eligible amount of an investment for the inclusion of investment projects in this aid scheme is defined based on the size of the organization, i.e.:

a. 1,000,000 euros for large companies,
b. 500,000 euros for medium-sized enterprises,
c. 250,000 euros for small businesses,
d. 100,000 euros for very small businesses,
e. 50,000 euros for Social Cooperative Enterprises (SOEs), as well as Agricultural Cooperatives (AS), Urban Cooperatives, Producer Groups (OP) and Agricultural Partnerships (A .E.S.).

 

⬢ Evaluation criteria

Applications are comparatively evaluated and ranked in descending order according to the score they have accumulated. All proposals that collect the minimum acceptable score (50 points) are evaluated until the respective budget is covered.

An investment project is examined according to the following evaluation criteria.

  • Investment Plan Maturity
    [Existence of titles/leases with transcription, Installation Permit, Approval of Construction Conditions, Archaeological Service Permit, Approval of Environmental Conditions, installation in BIPE/BEPE/BIOPA are evaluated].
  • Financial scheme evaluation
    [The existence of own participation for the non-subsidized part (max 1/2) and the existence of loan approval are evaluated]
  • Evaluation of an Investment Plan Entity
    [Ratios such as General Liquidity, Financial Leverage (Return on Equity / Return on Capital Employed), Net Profit Margin, Capital Structure, Total Borrowing Capacity are evaluated. In the case of a Newly Incorporated Organization or Entity with less than 4 closed management years, the Available Funds of the shareholders are also considered in terms of Own Participation.]
  • Investment Plan Evaluation
    [The Economic and Technical Study is evaluated in terms of the Financial Analysis (IRR, IRR, Interest-bearing Loan Repayment Capacity).
    Finally, the commitment to increase employment is evaluated in relation to the amount of investment, as well as the quota of Graduates in terms of the Total Increase in Employment (as long as it exceeds 6 full-time jobs, and are not subsidized by another program).

Applications are comparatively evaluated and ranked in descending order according to the score they have accumulated. All proposals that collect the minimum acceptable score (50 points) are evaluated for funding until the respective budget is covered. The evaluation is comparative, i.e. from the highest scores, up to the coverage of the program budget.

 

⬢ Indicative Recent Projects

See here the 1st cycle for the "Processing - Supply Chain" Status of the Development (Investment) Law 4887/2022 from the Ministry of Development and Investments. [Government Gazette 3890/B/22.7.2022 effective from July 27 to October 31, 2022] 

The Investment Center undertakes with responsibility the inclusion of businesses in investment programs through the Development/Investment Law. The subsidy concerns the establishment, modernization or expansion of units.

Some Investment Projects of the primary, secondary sector, as well as tourism, prepared in the said action are mentioned.


Indicative Subsidized Projects Year 2019-2020:

# Expansion of Capacity and Modernization of Existing Cheese Factory: 299.030,0 €.

# Expansion of the capacity of an existing nut processing and production unit, with the supply and installation of new technology mechanical equipment: 522.338,0 €.

# Construction of a 3-star (*) hotel unit, with a capacity of 11 rooms and 24 beds: 449.449,03 €.

# Modernization of a complete form (Fundamental change of the production process) of a hotel unit, with an upgrade to 3 stars (*): 417.251,03 €.

# Establishment of a new unit for the provision of gas storage services to third parties: 621.781,80 €.

# Modernization of an Integrated Form of a Hotel Unit: 780.000,0 €.

The executives of our company, in addition to the Economic and Technical Studies they prepare, hold the status of Appraisers of the Development Law [National Register of Certified Appraisers (EPA) of the P.D. 33/2011 for the needs of development laws].

Specialization combined with excellent training lead to the extraction of grants without problems and delays. The trust of our customers is a presumption of the right work being done.

 


The Investment Center provides full and comprehensive support, from the first eligibility check, the estimation of the expected score as well as the preparation - submission of a correct application to achieve an excellent result.  [See here previous projects in Development Law]. More information at +302108028330+302810823002, (info@kei.gr).

☆ More than 10 years of experience in Business Upgrade support ☆
NSRF Consultants: PEP, Tourism NSRF, Leader, Development☆

The know-how combined with the high specialization are the guarantee for the quality of the services of our office, ensuring the smooth integration of companies in subsidized programs, and the correct disbursement of the grants. The high success rates  in the recently sponsored programs are the guarantee of the excellent support from our office.


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