Webinar: “Financial support measures for doing business with China – part 1” – September 18, 2020
September 23, 2020 Category Past events, Weekly
The Flanders-China Chamber of Commerce and Flanders Investment & Trade organized a webinar on “Financial support measures for doing business with China” on September 18, 2020.
Ms. Gwenn Sonck, Executive Director of the Flanders-China Chamber of Commerce and the EU-China Business Association and Mr. Yves Roekens, Head Subsidies and Financing, Flanders Investment & Trade, introduced the subject of the webinar. Mrs. Lise Betjes, Expert Subsidies, Flanders Investment & Trade, talked about the conditions to apply for the starter’s package internationalization. They are similar to those of special export support. In 2020, FIT will distribute a maximum of 150 starter’s packages internationalization of €7,000 each and probably also the same number in 2021. The goal is to internationalize as many Flemish companies as possible. The target group is SMEs who have not yet received any subsidies from Flanders Investment & Trade. The call is being launched from October 5 till 28 to submit the applications.
There are several conditions, the most important one is that the SME has never before received any support from FIT, have a Belgian enterprise number, and being located in the Flemish region. The target group are young innovative enterprises entering the international market for the first time. Some sectors are excluded, specifically those who have already received financial support, such as agriculture, and enterprises who fall outside the scope of this subsidy offer, such as the hospitality and tourism sector, which through their activities are already active internationally. Companies in receivership cannot apply for subsidies. The subsidy is €7,000 to be used for costs related to international activities, except for salaries and internal company costs. To be reimbursed an invoice has to be received from a third party. This subsidy cannot be combined with support measures included in the ruling of 2016, nor with special export support measures.
Besides the financial support, the starter’s pack also includes coaching. The advisor international entrepreneurship will contact the SME three times: at the start of the project, during the execution period and afterwards. The detailed procedure for submitting an application is available on the FIT website. Applications need to be submitted online on the FIT website during the period from October 5 till 28. This period is limited because there are only 150 support packages available. When FIT receives 180 applications, the application period will be closed. Therefore it is advisable to submit an application as soon as possible and check beforehand if you can log-in with your ID card. Not all employees’ ID cards are linked to the company. If a problem occurs at log-in, it would still be possible to fix it before October 5.
The subsidy can be used to reimburse costs related to international business for nine months starting on the application date. This could for example include the costs to invite French clients, to adapt the company website, or adapt the packaging for the Chinese market. Upon application, the company will receive a file number, and when the application is completed, also a follow-up number. Companies will still have 10 days to complete their application if needed.
A completed application includes a completed electronic application form, a short presentation of the company and its activities, a description of the project, an implementation plan of up to nine months, and a budget for the minimum amount of the subsidy. At the end of the period it has to be shown that the project has been completed or sanctions may apply.
The applications will be evaluated by a selection committee on the basis of selection criteria. In case of a positive decision the subsidy will be paid within 60 days. Subsidies for the 150 packagess of 2020 will be paid out before the end of the year. After finishing the project, the company needs to submit a commercial report. FIT will check if there is proof of costs made and may request submission of invoices and other documents. In case the project was not completed, there is insufficient proof of costs having been made, or insufficient cooperation with FIT, FIT may decide not to provide further support the following year.
Mr. Yves Roekens provided further information about special export subsidies related to Covid-19 for Flemish SMEs who before the outbreak already had achieved satisfactory exports. The application period is the same as the one for the starter package. There are 500 special export support packages available of €5,000 and a rush is expected when the application period starts. Conditions to apply include having a least five full-time equivalent employees registered in the last annual account, having no negative capital, and having realized a minimum 20% share of exports during the last financial year. Subsidies will be disbursed according to the first-come-first-served principle.
The target group is substantial, as another 500 packages may be offered next year, subject to approval during the budget negotiations of the Flemish government at the end of the month. As FIT is expecting a rush it is vital to submit applications as soon as possible. Those who fail may still apply for support under the 2016 ruling. The application procedure is similar to the one of the starter’s packages already explained previously. Subsidies will be approved and paid out before the end of the year. The period however is six months instead of nine months.
The Export Expo which was planned this year had to be postponed due to Covid-19 and will be organized from February 9 till 11, 2021 at Palace 1 of Brussels Expo, either in a physical or virtual format, including the FIT representatives around the world.
Further questions can be submitted by email at subsidies@fitagency.be
Q&A: Is the starter’s package also available for start-ups and may consultancy expenses to explore the market also be reimbursed? Lise Betjes: Starts-up are part of the target group, but they should not have previously received any subsidies from FIT. If the company has invoices, costs can be reimbursed, only salaries and internal working expenses are excluded. Costs related to a student sent abroad to do market studies can be reimbursed.
Mr. Luc Royackers, Region Coach Contact Center, Agency for Innovation and Entrepreneurship (VLAIO), introduced growth subsidies for SMEs’ internationalization projects. The Agency Innovation & Entrepreneurship is a sister organization of FIT focused on organizing a good climate for Flemish entrepreneurs, by providing information, coaching and networking through partner organizations. VLAIO is using a business case approach, looking at the company’s project and not only at the subsidy measures. It refers companies to partners in the VLAIO network and determines whether subsidies might be disbursed. VLAIO’s support measures include an “SME growth subsidy”, which might be applicable to internationalization projects if extra knowledge in the strategic field is required. Many SMEs need a bigger budget, so VLAIO is offering a growth subsidy to SMEs who have a clear growth vision, related to a transformation, innovation or internationalization project. In that case they are faced with something new and would need more strategic knowledge. Subsidies are intended to buy external advice or employment of a strategic collaborator. VLAIO focuses on companies doing something new and encourage them to grow. The subsidy is €25,000 to employ a new collaborator and/or an external consultant, which together amounts to €50,000. The companies need to have a vision and a plan to implement it, not just a vague idea. They need to analyze which company processes will change as a result of the growth strategy, such as human resources, IT and marketing. To manage the changes the company will need knowledge. The evaluation criteria include the vision on economic growth, a tipping moment of doing something new, a plan to achieve the objectives, and the necessity of strategic knowledge. The application needs to be submitted during the month prior to employing the new strategic collaborator. There will also be a meeting with a case file handler and the decision may take a few months. An e-window for entrepreneurs is also available at www.e-loketondernemers.be
VLAIO has a subsidy databank including information about subsidies and financing and a series of subsidy guides.
More information is available at: www.kmogroeisubsidie.be and application procedure.
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