Regional funding: subsidized or non-repayable?

How do regional funding work?

How do regional funding work?

The process of advancing federalism, accompanied by an increasingly stringent spending review , has left the regions with few resources, so even when we hear about regional funding , the relative funds are not directly provided by the region itself.

In fact, this decides only on the size of the fund for each period and the requirements to be able to access the call for applications and the allocation of contributions, which in most cases are provided in the form of non -repayable loans .

Characteristics of regional funding

Characteristics of regional funding

The EU, in the distribution of the money allocated in its own funds, already aimed at the realization of certain projects, also establishes the sums that are assigned, for each programmatic period, to the different regions.

Amounts that, logically, take into account the economic difficulties, the state of backwardness in terms of wealth and the unemployment rate of the various areas (and this explains why the various Regions obtain funds of different amounts). The assignment of the funds therefore upstream already has its use.

The various regions can also determine the extent of possible additional incentives assigned to certain categories (especially female and young entrepreneurs) and the minimum and maximum admissible investment threshold. All these provisions are summarized by the regulation of each call that defines the guidelines for each assignment. In recent years the Regions have increasingly resorted to revolving funds , which allow them to continue to allocate unused funds, overcoming the temporal limitations that accompany the calls for tenders.

Types of regional funding

Types of regional funding

The most widely used forms of financing are, as mentioned, non-repayable and subsidized loans . The latter are very specific, as they are above all the result of agreements that the regions have made with the banks that are most present at a territorial level or, in some cases, directly with the associations representing the various companies by sector.

This type of financing mainly involves a facilitation of access to loans (broadly following the characteristics of honor loans ), but often interest rates that are lower than the average ones also apply. Only for this type of financing can you contact the banks directly for information on the existence of any agreements, while in all other cases you must necessarily inquire at the regional offices or on the sites of the regions.

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