For whom?

The growth premium is a direct financial subsidy to companies wishing to invest in the Flemish Region.

The growth premium targets small and middle-sized companies with:

• investment plans in the Flemish District
• an acceptable main activity (Nace-code)
• an acceptable legal form (i.e. stock corporation, limited liability company)
• no governmental participation of 50% or more

Please note: No ecological grant can be granted to companies in which an administrative authority has a 'dominating influence'. It is assumed that there is 'dominating influence' if 50% or more of the capital or of the voting rights of the company are directly or indirectly controlled by an administrative authority.
This assumption can be refuted if the company can prove that in reality the administrative authority does not have a dominating influence on the policy of the company. The minister decides on this.

What?

A growth premium is awarded on the basis of a call system ('call') whereby applications for support may be submitted during a fixed period.  There are three calls per year with a total budget of 47.757.000 euro for 2008.  The current call lasts until midnight of April 30th. 

Once the timeline for submitting applications has reached its ending, the applications are compared with each other on several criteria and awarded a final score. The highest scoring projects are awarded the growth premium until the pre-determined budget (current budget per call: €15.858.000) allocated to providing the support is used up.

The following investments are accepted:

• Investments in fixed assets:
  All investments in land (purchase & lease), buildings (purchase, lease, renovation), machinery, material (purchase & lease)
• Investments in intangible assets:
  Purchase of patents, exploration licenses, or licenses of (patented) technological know-how. These purchases must take place from third parties and at market-conform prices.

Minimum amount

For the growth premium for SEs and MEs, the subsidizable investment must be no less than the following minimum levels: 
- EUR 12,500 for companies less than 5 years old (starting from the date of registration at the Crossroad Bank for Enterprises).
- EUR 25,000 for companies older than 5 years.

The call competition system does NOT apply to subsidizable investments greater than EUR 8,000,000. The Flemish Government shall determine how much support to allocate to such investment projects by means of a separate procedure (see growth premium for strategic projects).

Percentage

The subsidy percentage is determined by ministerial decree per call.

For 2008: (irrespective of the specific investment location in Flanders)

The support is calculated as a percentage of the subsidizable amount of the investment. This is the amount of the investment stated in the submission and accepted after the write-off deduction and VAT. The maximum support amount is 1 million euro.

How to apply?

An application can only be submitted via the website:
www.vlaanderen.be/groeipremie.

Details of projects may be submitted during a timeline determined in advance. Only one application per company and per call will be considered.  Recall is not possible.

In principle, 3 calls per year are organised, once each trimester. In reality, the number of calls may differ depending on the leftover budget.

A company wishing to submit details of a project must first be registered online; once it has obtained a login name / password it may apply for a call and follow up its files (including the request for payment of the subsidy).

A distinction is made between the categories of size of the companies. Only small enterprises (SEs) and medium-sized enterprises (MEs) can participate in the current call.

Please note: The Flemish Government also offers cash grants for investments exceeding the maximum €8,000,000 allowable under the call system described above.