New subsidy scheme to improve competitiveness - Call for proposal

New subsidy scheme to improve competitiveness - Call for proposal

New subsidy scheme to improve comptetitiveness

In line with the introduced comprehensive economic response of Hungary to support businesses affected by coronavirus (COVID-19) outbreak at the Economic Action Plan webinar, the new incentive program is now available for companies based on the Decree of Foreign Affairs and Trade no. 7/2020. (IV.16) on the subsidy to improve competitiveness required as a result of coronavirus outbreak. For further details, please check out the Call for Subsidy to improve competitiveness and the related documents below.

The subsidy to improve competitiveness has been designed to help the medium-sized and large enterprises that are active in the manufacturing or business services sector that face difficulties due to loss of income and liquidity resulting from the economic impact of the pandemic. The aid can be granted in the form of non-refundable cash grant in advance until December 31, 2020 by submitting the application form to HIPA.

From May 6, 2020 changes will be introduced to the Call for Proposal on Subsidy to improve Competitiveness available from April 21, 2020 that supports companies that face the economic difficulties caused by the coronavirus epidemic. Gathering all the experiences of the incentive scheme, the aim of the changes is the simplification regarding the administration and the incentive procedure.

In order to simplify the procedure, the deadline for the companies to submit the original document (the hard copy) will be increased to 10 working days instead of the current 5 days after the submission of the application electronically. The letter of acceptance regarding the application shall be issued after the electronic submission but the decision of the Donor will be made based on the original documentation.

For a more detailed information, please check the revised Call for Proposals on Subsidy to improve Competitiveness and its annexes.

Call for proposal

  1. Application form
  2. Official declaration on providing cash incentive
    1. Summary of invoices
    2. Letter of authorisation
  3. Detailed rules concerning eligible and non eligible costs
  4. Frequently asked questions
New measures were introduced in order to support businesses affected by the coronavirus (COVID-19) outbreak at the Economic Action Plan webinar organized by HIPA on April 9, 2020.

Hungary has successfully notified to the European Commission a HUF 50 billion (approximately EUR 140 million) aid scheme. The subsidy shall be linked to the amount investment made by the applicants, and the support per company will not exceed EUR 800,000. The aid, that is financed by Hungary, can be granted until December 31, 2020.

For further details please check out our presentation.