Goal 1 development area
until 2013

EU Target 1 development area

As part of the joint task for the improvement of the regional economic structure, Frankfurt (Oder)/Eisenhüttenstadt is a European Union Goal-1 development area until 2013, meaning it offers the best conditions for development in Europe. As well as extensive financial funding for investments, the Investor Center Ostbrandenburg offers investors first-class operative support during the location process.

Investment subsidies of up to 50%

On deciding to invest, companies will be entitled to investment subsidies for their site depending on the size of the company. According to the company, maximum subsidies possible will vary between 30% and 50%.

Investment costs eligible for funding

Specific requirements must be fulfilled when availing of funding. As well as size of company, type of investment asset and total scope of investment will also determine the eligibility of the investment for funding.

All investment costs are eligible except for the following

• Investment costs above 0.5 million euros for each permanent post created
• Immaterial assets above 25% of the eligible investment costs
• Vehicles, replacement acquisitions, VAT/financing costs, second-hand assets, internal labour and services, purchase of real estate, assets purchased before receipt of development worthiness certificate

Additional requirements

• Start of investment within 6 months after receipt of approval decision, max. investment time 3 years
• Location developed must operate for at least five years following completion of investment
• Own capital and/or bank loans not warranted by public government amounting to at least 25% of the investment sum
• Subsidies must always be guaranteed by an owner surety (stake in company capital of 25% or above or 25% of voting rights) according to the percentage of the stake
• In case of investments greater than 50 million euros, maximum aid rates are reduced according to the EU multisectoral framework on regional aid for large investment projects depending on the total costs eligible for aid (no small or medium-sized business subsidies are granted for large investment projects).

Other financial development aids

Location to Frankfurt (Oder) or Eisenhüttenstadt is supported by a large number of other financial development measures. These include:

• Joint task subordinated loans:
  • Up to 5 million euros with 10 years validity period and no repayment for 3 years
    
• Government-assured loans: 
  • Max. 80 % of loan sum at low interest due to state surety or combined state/federation sureties
• Equity capital:
  
  • From the State of Brandenburg or private venture capital companies
    
• Subsidies for R&D projects:
  
  • Up to 65%, 75% or 80% (for large, medium and small companies), project-based, max. 4 million euros for joint projects with research institutions
• Employment market policy aids:
  
  • Wage costs subsidies, training and qualification measures, personnel recruitment and preliminary selection
    

Need more information? Don’t hesitate to contact us. We will be delighted to provide you with extensive consultation on all development opportunities available for your investment.

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