New terms and conditions of Business Partnership Support published
Terms and conditions of Business Partnership Support have been updated from 1st of January 2024. The update concerns the support percentages and permitting piloting in the project phase 7: development of existing business in the target country.
From the beginning of 2024, the support percentage for least developed countries and fragile states have been reduced from 85% to 75% for SMEs and 50% for large companies. At the same time, the support percentage for SMEs in lower middle-income countries have been increased to 75%. Ukraine remains the only country in the 85% support category.
In addition, piloting has also been added to the eligible activities under the project phase 7: development of existing business in the target country. Technology and solution piloting and demonstrations should be related to: a. expanding the product portfolio, c. finding subcontracting or similar partners, d. developing activities for easier scalability and/or e. determining investment needs and their financing. The change in the terms and conditions will also make piloting and demonstration of technologies and solutions eligible activities for Finnish companies already established in the target country.
New terms and conditions can be found here and the updated support percentages as well as the country list here.
De minimis ceiling increases
The European Commission has adopted new general rules that increases de minimis ceiling from €200,000 to €300,000. The new regulations have entered into force on 1 January 2024.
Business Partnership Support granted by the Ministry for Foreign Affairs is de minimis aid in principle, but in practice the majority of projects receiving Business Partnership Support are not subject to de minimis regulation because the business activities take place outside the EEA. In general, only import-focused projects supported by Finnpartnership are subject to de minimis regulation and, thus, the ceiling of financial grant granted to these projects is EUR 300,000.
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