Grants for investments
Whenever a company makes an investment, it also assumes some risks. Thus, the investment could fail to have the desired effect, turn out to have been wrongly calculated, or prove fruitless for any number of other reasons. In order to minimize these risks, government agencies in Germany have set up a number of programs to make a company’s investment decisions easier. For example, there are some programs in place that offer subsidies of up 35% towards an investment’s costs. They mean that an applicant company that has documented its investment stands to retroactively receive public funds that need not be repaid. Certain preconditions will have to be met, of course. The agreements and the financial statements will have to be submitted, the shareholders will have to be named, and significant amounts of additional paperwork will have to be done. We will be happy to assist you with these tasks and help compile everything you need. Other forms of public support include subsidized low-interest loans, for which the rates of interest are well below market, i.e. as low as 1% per annum. With these types of grants, one can also arrange to suspend repayment of the principal for a certain period.
Grants to promote job creation
Investing in human resources often is a risky proposition. Not so much in terms of legal issues, which can be handled by an attorney for labor law, but simply in terms of whether or not the new hire will be a good fit for the team and perform as expected. In order to mitigate this risk, grant programs have been set up to help companies hire the personnel they need without having to bear the entire risk themselves. For example, certain government agencies step in to cover a portion of salary payments or grant subsidies towards these costs.