Funding for business development
in disruptive circumstances

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Funding for business development in disruptive circumstances

Funding for SMEs and midcap companies whose business is affected by corona virus outbreak.

Who can apply?

The funding services are intended for SMEs employing 6-250 people and mid-cap companies operating in Finland whose business is impacted negatively by the coronavirus epidemic. Mid-cap companies are large companies with a turnover or group-wide turnover of up to EUR 300 million.

Customers of the funding services include, among others, the tourism industry, supplementary services for the tourism industry, creative industry and performing arts, and all industries whose subcontracting chains have been or will be impacted by the coronavirus epidemic.

Funding can not be granted if you are a large enterprise, a private trader, a public organisation, foundation, association or a company registered in Åland.

What is it about?

The funding is divided into two services. You cannot apply for both fundings at the same time.

1) Funding for preliminary studies on business disruptions. Up to 10,000 euros of funding. Companies can use the funding to investigate and plan new business, alternative subcontracting chains and ways to organize production during and after the disruption caused by the coronavirus.

2) Development funding for business disruptions. Up to 100,000 euros of funding. Companies can use the funding to carry out development plans identified in the preliminary study or otherwise in its operations to improve the company’s potential for success during and after the disruption caused by the coronavirus. The goal of the measures must be to create new solutions related to products or production for the company.

The funding is a form of de minimis aid and may be granted provided that the company has not exceeded its de minimis quota. The maximum permissible amount of de minimis aid is 200,000 euros over the current and two previous tax years. De minimis aid is granted by many public organizations, including Finnvera and ELY Centers.

Companies in agricultural primary production or the fishing or fish farming industries are ineligible for the funding. Private traders are also ineligible. A company may receive the funding only once, barring special exceptions. After both funding services are exhausted, follow-up funding required by the company to develop the new solutions can be funded as normal R&D&I funding under Business Finland’s standard funding criteria.

Preliminary study on business disruptions

Who can apply?

Funding for preliminary studies is intended for all SMEs and mid-cap operating in Finland whose current business is negatively impacted by market and suppl chain disruptions caused by the coronavirus. Companies can use the funding to investigate and develop measures necessary to mitigate business disruptions and prepare for business operations after the disruption has ended. A company may receive the funding primarily only once, with the exception of special cases.

Funding for preliminary studies may be granted for the following business innovation and development needs:

1)     Investigation of measures necessary to correct disruptions in the supply chain, regardless of industry

  • Typical targets of funding: investigations and preparations related to relocations as the result of breakdowns in international supply chains, repatriation of production, and removal of the causes of logistical disruptions.

2)     Development of business for the tourism industry

  • Typical targets of funding: investigations and preparations aimed at developing accommodation and travel services and the development of those services directly associated with the tourism industry that suffer negative business impacts as the result of reduced tourism.

3)     Development of services and business for the creative industries

  • Typical targets of funding: investigations and preparations aimed at business development of services in the copyright industries (e.g. video games, audiovisual arts, music), event management providers, and art and culture services.

How can the funding be used?

The funding may be used to investigate or plan new measure for the company. Eligible costs include the salary costs of the company’s employees to the extent that the employees are engaged in investigative or planning tasks, and the costs of purchased services related to investigations and planning.

A project receiving funding could for example, investigate potential new business avenues and clientele and available solutions during and after the disruption. Potential topics of study include

  • New market and customer needs
  • New partner networks
  • New ways to organize work and production
  • New services and products
  • Any other new measures that the company deems necessary under the circumstances

Amount of funding and eligible costs

The amount of funding for a preliminary study is 80% of the project’s approved total costs. Up to 70% of the granted funding may be paid in advance.

The funding uses a so-called flat rate cost estimate (salaries + indirect personnel costs + purchased services + flat rate). Eligible costs include the company’s own salary costs and indirect personnel costs to the extent that employees work on the project, as well as purchased services. Eligible costs also include a flat rate of 20% of the total sum of salary costs and purchased services.

Development funding for business disruptions

Who can apply?

Development funding is intended for all SMEs and mid-cap operating in Finland whose current business is negatively impacted by market and suppl chain disruptions caused by the coronavirus. Companies can use the funding to carry out new development measures aimed at preventing and correcting market and supply chain disruptions caused by the coronavirus.

Development funding may also be applied directly without a preliminary study project.

Development funding may be granted for the following business innovation and development needs:

1. Investigation of measures necessary to correct disruptions in the supply chain, regardless of industry

  • Typical targets of funding: new solutions and operational models for the company related to relocations as the result of breakdowns in international supply chains, repatriation of production, and removal of the causes of logistical disruptions.

2. Development of services and business for the creative industries

  • Typical targets of funding: services for companies in the copyright industries (e.g. video games, audiovisual arts, music) and event management services, and business development of art and culture services, to the extent that these are new to the company.

3. Development of business for the tourism industry

  • Typical targets of funding: accommodation and travel services and those services directly associated with them that suffer negative business impacts as the result of reduced tourism, to the extent that these are new to the company, as well as service development and other business development.

What is it about?

The funding may be used to carry out innovation and development measures by the company to solve current business obstacles, redirect its business, or develop its subcontracting chain and production to replace deficiencies detected in its supply chain. The measures must always be targeted at areas that are new to the company and may not involve the direct implementation of existing operations or the costs of operational production activities. The funding may not be used to offset losses caused by business disruptions.

The planned development measures may be carry out internally by the company or as purchased services. The funding may also be used for pilot tests of new business innovations within the company. Potential targets for development measures include, for example

  • New services and products
  • New partnership and subcontracting models
  • New operating models for the organization of work and production and their relocation to Finland
  • Any other new measures that the company deems necessary under the circumstances

Amount of funding and eligible costs

The amount of funding for a development project is 80% of the project’s approved total costs. Up to 70% of the amount of funding may be paid in advance. The amount of funding is 50,000–100,000 euros and may be granted only once to a company. Follow-up measures after the development project may be funded as normal Business Finland research, development and innovation funding under standard funding criteria.

The funding uses a so-called flat rate cost estimate (salaries + indirect personnel costs + purchased services + flat rate). Eligible costs include the company’s own salary costs and indirect personnel costs to the extent that employees work on the project, as well as purchased services. Eligible costs also include a flat rate of 20% of the total sum of salary costs and purchased services.

Application process

The project’s content should be described in a single text field in the application as follows:

Preliminary studies: The applicant must describe the areas it intends to investigate and plan and how the investigations and planning will be carried out (e.g. business operations, services, solutions, alternative supply chains and reorganization of work and production in the disruption caused by the coronavirus). The areas chosen for investigation and planning must be new to the company.

Development projects: The applicant must describe the areas to be developed in the project and how the development will be carried out (e.g. business operations, services, solutions, alternative subcontracting chains, new operating models for organizing work/production during the disruption). The areas chosen for development must be new to the company. Additionally, the applicant must describe how it believes the developed new measures will be helpful against the challenges faced by the company due to the coronavirus.  

Starting the project

If you receive a positive funding decision for your application, see the instructions on the page Starting a project.

Reporting

At the end of the project, the company must report on the project’s results and how its targets were achieved. The report is submitted in the Online Service. Funding terms and conditions applied to the project can also be found in the Online Service. 

Online Service

The terms and conditions relevat to your project are also found in the Online Service. 

Go to the Online Service

Q&A

Common questions about the funding. Please read these before submitting your application!

Frequently asked questions