Supporting newly established innovative businesses in the Crete Region

The subsidised budget of each investment proposal of a potential aid beneficiary ranges from €30,000 to €150,000.

The maximum duration to complete the physical and financial scope of the investment plan may not exceed twenty-four (24) months as from the date of online notification of the final approval of the funding application (evaluation result or objection evaluation result).

The budget of the Action’s public expenditure amounts to € 2,500,000 and is allocated as follows:

• 40% (Budget of €1,000,000) for the 1st Category (businesses under establishment);
• 60% (Budget of €1,500,000) for the 2nd Category (existing businesses);

with the option to reallocate funds among the categories if the proposals submitted do not fully use their respective budgets.

The Call is addressed to micro and small enterprises that operate or intend to operate within the Region of Crete, aiming at the development of innovative and competitive products and/or services.
To be eligible, each investment plan must be documented as being linked to one specialisation/ priority sector of the Regional Specialisation of the National Smart Specialisation Strategy (ESEE) for the Region of Crete:

• Tourism – Culture – Creative Industries
• Agri-food Supply Chain
• Environment – Cyclical Economy
• Biosciences – Health and Medicines
• Sustainable Energy
• Digital Technologies

while at the same time such products or services shall have documented cutting edge characteristics.

In addition, the enterprises must operate exclusively under one of the following business forms:
Société Anonyme (S.A.), Single Member Société Anonyme, Limited Liability Company (Ltd.), Single Member Limited Liability Company, General Company (O.E.), Limited Company (EE), Limited Partnership by Shares, Private Capital Company (IKE), Single Member Private Capital Company, Social Cooperative Enterprise (KOINSEP) under Law 4430/2016 and Civil Law Non-Profit Organisation (AMKE).

Eligibility criteria applicable to both categories 

• Under establishment: Businesses that have not filed a notice of commencement of operations and will be established after the submission of the funding application.

• Existing/ newly established businesses: 

• Beneficiaries: Enterprises that are already established and hold a certificate issued by the Independent Authority for Public Revenue (AADE) certifying the commencement of its operations between 01/01/2021 and the application submission date.
• Enterprises that have the status of Micro or Small Enterprise as defined in Commission Recommendation 2003/361/EC of 6 May 2003 and in accordance with Annex I of Regulation (EU) 651/2014 on the definition of micro, small and medium-sized enterprises.
• The investment plan must demonstrably concern/ fall under at least one priority of the Regional Specialisation of the National Smart Specialisation Strategy (ESSE) for the Region of Crete (Annex XI).
• The subsidised budget of the investment plan must be higher than or equal to the minimum threshold set in section 6.3 “Budget & Duration of implementation”.
• The investment plan must be exclusively implemented in a single establishment in the Region of Crete and the corresponding expenditure shall also incur in the same Region. The establishment of a branch is permitted throughout the entire duration of the implementation of the Business Plan but there shall be only one place of implementation of the investment.
• The proposed investment plan must relate to at least one of the eligible Business Activity Codes (KAD) included in ANNEX ΙΙΙ “Eligible activities (KAD)” of the Call.
• They must exclusively operate under one of the following forms of business:  ΟΕ, ΕΕ, ΕΕ by shares, Ltd, Single member Ltd, SA, Single member SA, ΙΚΕ, Single member IKE, SCE, ΑΜΚΕ
• They must submit proof of availability of funds, demonstrating that it is possible to cover at least 25% of the total investment plan expenses, either through own resources or external financing.
• They must meet all the conditions for the application of Regulation (EU) 2831/2023 (De Minimis), according to which the total amount of de minimis aid that the single enterprise has received in a rolling 3-year period shall not exceed €300,000.
• They must keep single-entry or double-entry accounting books pursuant to Law 4308/2014, as in force.
• They must operate legally by having the appropriate licensing document, in accordance with the applicable legislation and their declared activity.
• The total amount of the investment plan and various individual cost items shall not be funded or included in any other action financed through national or EU funds subject to the exclusions provided for and applying to financing products (loans or guarantees).
• They must comply with the provisions set out in the Commission Communication (2021/C 373/01) on climate proofing of infrastructure.
• They must ensure respect for fundamental rights, gender equality, non-discrimination, transparency, accessibility for persons with disabilities, sustainable development and the “do no significant harm” principle.
• They must provide accessibility for persons with disabilities to infrastructures, services and electronic environments in accordance with the applicable regulatory framework.
• They must comply with the legislation on occupational health and safety and prevention of occupational hazards.
• The place of implementation of the investment must not be the residence of the beneficiary (primary or secondary).

• They must submit online the funding application accompanied by the documents and forms required by the Call.
  
  Special conditions for Category 1: Establish new innovative enterprises in Crete (Businesses under establishment)
•  The proposal must be submitted by a business under establishment including a draft of Articles of association signed by all directors/partners.
• The commencement of operations must be filed with the competent Tax Office following the online funding application.
• The same investment owner (business/ shareholder/ partner/ sole proprietor) cannot participate in more than one investment plans of the business under establishment.
• They must undertake to file the notice of commencement of operations no later than upon submission of the first request for payment of the grant.
• They must undertake to register with the Beneficial Owners Register no later than upon submission of the first request for payment of the grant, where required by law.
• The subsidised enterprise will not be co-located with another enterprise.
  
  Special conditions for Category 2: Supporting new innovative businesses in Crete (existing/ newly established businesses)
•  They must be incorporated on or after 01/01/2021 and before the submission date of the funding application (commencement of business activity with AADE-tax authority).
• Businesses must submit one and only funding application per TIN.
• Their office should be located within the Region of Crete and registered prior to the submission of the funding application.
• They must have their office registered as active with the Tax Office (DOY).
• The physical scope of the investment must not be completed prior to the submission of the funding application.
• They must not be subject to a pending aid funding clawback order for illegal and incompatible State aid.
• The creditors of the company must not be under bankruptcy, liquidation or compulsory administration and should not have filed an application for resolution.
• They must be registered with the Beneficial Owners Register prior to submission of the funding application, where required.
• Co-located enterprises are not excluded if they provide a written commitment to relocate to a separate, independent establishment upon commencement of the investment plan.
• They must undertake that there are no grounds for exclusion under articles 39 & 40 of Law 4488/2017.
• They must meet the conditions set out in the Call, in case they have received rescue or restructuring aid.
• If they are active in the fisheries and aquaculture sector, they should not have committed any infringements referred to in Regulation (EU) No 508/2014.

The main expenses covered by the Program relate to:

• Cost of Equipment & Instruments 
• Expenditure on Buildings, Land Plots, Facilities & Surrounding Areas 
• Expenses for the Provision of Services 
• Software costs
• Promotion, Marketing & Networking Expenses 
• Patent Expenses
• Indirect expenses (7% of the eligible direct expenses of the investment project)

• Note:
  The start date for eligibility of expenditure is defined as the date of publication of the Action’s Call. Any expenditure incurred (or contracted) before the start date of eligibility of expenditure (even if the contract has not been invoiced) is not eligible.
• The standard deadline for the eligibility of expenditure is defined as the deadline for the completion of the operation, i.e. twenty-four (24) months from the date of online notification of the final approval of the funding application (evaluation result or objection assessment). In any case, the above date can be no later than the deadline of eligibility of expenditure applicable to the Program 2021-2027.

Public Expenditure for all investment plans amounts to 75% of the subsidised budget, while the remaining amount is covered by private participation.