Improvement of Regional Economic Structure GRW-G Large Directive

ILB's "GRW-G Große Richtlinie" [Large Directive] programme is devoted specifically to supporting medium-sized and large enterprises. Smaller enterprises are also eligible for support for projects with a volume of €1.5m and more.

Recipients Enterprises in Brandenburg
Subsidy subjects Investment by commercial enterprises
Subsidy types Allowances, subordinated loans
Subsidy providers ILB, Federal State of Brandenburg, Directive by the Ministry for Economic and
European Affairs concerning the promotion of the commercial sector within the scope of the "Improvement of Regional Economic Structure" common task – GRW – (GRW-G) – Large Directive of 2. January 2014
Fund origin European Regional Development Fund (ERDF), German Federal Government, Federal State of Brandenburg

The aim of the programme is to strengthen the competitiveness and flexibility of Brandenburg's economy. The programme is designed to create and secure jobs in the federal state of Brandenburg.

Support is available for investment projects by companies with supraregional customers.

Individuals and organizations eligible for subsidy

ILB's "GRW-G Large Directive" programme supports enterprises in the commercial sector, including tourism, on condition that they fulfil the primary effect and are not excluded from support because they belong to an industry that is not eligible.

Support is granted for investment of commercial enterprises in facilities in the federal state of Brandenburg in as far as they belong to a core area of the following clusters:

  • Energy sector
  • Health sector
  • Information/communication technology/creative sector
  • Optics
  • Transport/mobility/logistics
  • Food industry
  • Plastics/chemicals
  • Tourism Metals

Items eligible for support and subsidy

Support under the programme is available for the following projects:

  • Establishment of facilities
  • Expansion of facilities
  • Acquisition of a facility that has been closed down or is threatened by closure
  • Diversification of a facility (new, additional products)
  • Fundamental change in the overall production process

Expenditure eligible for support must total at least €100,000 for a project to qualify.

Support for projects in the tourism sector is only available for health tourism projects in state-recognized spa and recreation towns as well as for bicycle and water tourism projects.

Support and subsidy procedure

A pro-rata grant is available for expenditure eligible for support. Applicants can choose between real-capital and wage-cost related grants. Support can also be granted in conjunction with a subordinated loan.

Terms and conditions

Two support areas with different maximum support rates exist in the federal state of Brandenburg. A maximum rate of 30 percent is foreseen for the north-east Brandenburg area (districts of Prignitz, Ostprignitz-Ruppin, Oberhavel, Uckermark, Barnim, Märkisch-Oderland, Oder-Spree as well as the autonomous city of Frankfurt/Oder). A maximum rate of 20 percent is applicable to the south-west Brandenburg area (districts of Havelland, Potsdam-Mittelmark, Teltow-Fläming, Dahme-Spreewald, Elbe-Elster, Oberspreewald-Lausitz, Spree-Neiße as well as the autonomous cities of Brandenburg a. d. H., Potsdam and Cottbus). Other grants are counted towards the maximum rate.

Fulfilment of structure effects influences the amount of support granted.

The support rates determined can be increased by 10 percent for medium-sized enterprises. A 20 percent mark-up is possible for small enterprises.

Description of the application procedure

Projects may not be started until ILB has confirmed general eligibility in writing.

Leasing/hire-purchase financing is only eligible for support if the lessor/vendor assumes liability for any refund claims and if the assets (other than buildings) are purchased at the end of the term.

Grants are generally secured by a guarantee by a shareholder, bank or third party for shareholder shareholdings of 25 percent or more in the company's share capital or 25 percent of voting rights corresponding to the percentage share.

If the number of existing, permanent jobs is not increased by at least 15 percent, support is only granted if the annual average of the investment sum is at least 50 percent higher than average depreciation and amortization for the past three years. Furthermore, the number of jobs in the facility to be supported must be increased by at least 5 percent. This condition is considered to be fulfilled in the case of a newly created or acquired facility.

The project must start within 6 months after the approval notice has become final and binding. The investment period totals 36 months max.

The facility supported must continue to operate for at least five years after the investment period has ended.

The characteristics of assets and permanent jobs supported must remain unchanged for at least five years after completion of the investment project.

The characteristics of hotels, B&Bs, holiday homes as well as charter boats used for accommodation must remain unchanged for ten years.

Wage-cost related support under the "Large Directive" programme can be combined with investment allowance.

Support is reduced by 20 percent if temporary workers account for more than 10 percent of the facility's workforce.

Enterprises employing more than 30 percent temporary workers at the facility are not eligible for support.

Period of availability

The Directive came into effect on 1 January 2014 and will terminate on 30 June 2014.

Need further information

If you have any questions, please contact ILB's customer service staff at: +49331 660-2211 (info line for business and infrastructure issues).

Applications must be submitted to ILB. Application documents can be downloaded from ILB's homepage. Overall financing of the project must be generally confirmed by the applicant's bank in the application.

The budget, factual and legal situation at the time of approval is relevant for support and the amount granted.