SHOULD EU SUBSIDIES BE REIMBURSED?
EU grants to companies
Many people are still asking themselves whether subsidies from the union are forever or whether they will have to be given away. The assumption is that grants are non-repayable aid, which means that they do not have to be repaid. However, we have situations where this return will be necessary. This will be the case if we receive the funds, but we do not meet the conditions of the agreement that we will sign. In each grant agreement, we have exactly the conditions that have to be met in order for the aid to be given to us without having to give it back. This is an important issue, which is why it is worth getting to know all these important conditions in order to meet the obligations imposed on us.
When will it be necessary to donate?
Reimbursement of European Funds will have to be carried out if the funds are spent differently from the funds intended to be used in accordance with the agreement. In the case of grants for companies we usually have specific refund rules and therefore, if we do not buy what will be necessary for the company, we will not get a refund of the money we spent. Advance payments are an exception.
In some cases, it is possible to obtain such a subsidy. This is the moment when the money gets to you before something else begins to be realized. then you will have a chance to spend money on something else, but in fact you have to reckon with the fact that sooner or later the return will become a real necessity.
The same will be the case for grants to set up a business. The money we receive under the EU subsidies will always have to be accounted for and that is why it is necessary to take into account how it is spent. If we do not settle them very quickly, it will turn out that we will get a call for a refund of the funds that we managed to receive. In this situation there will really be a serious problem with our subsidy because it will be hard to apply for more funding later on, and in addition, this already obtained will also have to be returned with interest.
In general, however, the funds are given to us in a non-refundable form, so one can expect that they do not have to be returned provided that we keep an eye on the settlement dates and spend the money on exactly what it is actually intended to be used for. In this way, the money can actually be used permanently and we will not need to return it.