The South-East Estonia Business Development Grant Reopens with Updated Conditions

The application round for the Kagu-Eesti Business Development Grant has reopened with updated conditions aimed at making the measure more targeted, practical and easier for companies to use. The call, which was temporarily closed at the end of June, is again open to entrepreneurs in Põlva, Valga and Võru counties.

The grant is intended for micro and small enterprises that have been operating in the Estonian Business Register for at least three years and have a permanent place of business in South-East Estonia. Its purpose is to support the region’s economic development by encouraging business diversification, innovation, productivity growth and the creation of new employment opportunities.

Several practical changes have been introduced. From now on, support is available only to companies with at least one employee. Reporting requirements have also been made more flexible, as the obligation to submit an interim report will depend on the discretion of the State Shared Service Centre. In addition, grant payments may be made not only as fixed-sum payments but also on the basis of cost documents, which can improve liquidity for grant recipients during project implementation.

The total budget of the measure, financed by the European Regional Development Fund, is €6.49 million. So far, 58 projects have received support in the amount of €2.87 million, while the remaining funding is now being made available through the reopened call. The minimum grant amount is €20,000 per project, while the maximum grant is generally €60,000, depending on the applicant’s available de minimis aid balance. Projects with a total cost of up to €200,000 may be supported, with the grant covering up to 60% of eligible costs.

The measure is particularly relevant for companies planning projects that help address the key challenges of South-East Estonia: increasing incomes, improving productivity and strengthening innovation in the regional economy.