City Council adopts guideline to support small companies in ERDF areas
At its meeting today, the City Council adopted a guideline on the granting of subsidies to small companies as part of the "Sustainable Integrated Urban Development ERDF 2021 to 2027" funding programme.
The guideline regulates the conditions under which the City of Chemnitz can pass on funding to third parties for eligible projects of small companies in the ERDF funding areas "Chemnitz-Mitte", "Altchemnitz" and "Zwickauer Straße". The funding rate amounts to a maximum of 40 per cent of the eligible costs and a maximum of 25,000 euros per company. If new jobs are also created, the subsidy rate increases.
The directive can be used to set up a so-called KU Fund ("Fund for Small Enterprises"), for which a total of around EUR 1.8 million is to be made available in the period from 2023 to 2027. 70 per cent of the grants to small companies will be covered by financial assistance from the ERDF and 30 per cent from the City of Chemnitz's own funds.
The grants are intended to incentivise companies in disadvantaged urban districts in ERDF-funded areas to relocate, secure or expand their site and to relocate within or to the area.
As usual, the "Small Businesses Working Group", headed by the Urban Planning Office as the authorising body, will decide on individual grants for small businesses. In addition to the business division, the working group also includes representatives of the respective neighbourhood management. Information on the application process will be published shortly.