The aim of the programme is to strengthen the competitiveness and flexibility of Brandenburg's economy. The programme is designed to create and secure jobs in the federal state of Brandenburg.

Support is available for investment projects by companies with supraregional customers.

Individuals and organizations eligible for subsidy

ILB's “GRW-G Large Directive” programme supports enterprises in the commercial sector, including tourism, on condition that they fulfil the primary effect and are not excluded from support because they belong to an industry that is not eligible. Support is primarily granted for investment of commercial enterprises in facilities in the federal state of Brandenburg in as far as they belong to a core area of the following clusters:

• Energy sector
• Health sector
• Information/communication technology/creative sector
• Optics and Photonics
• Transport/mobility/logistics
• Food industry
• Plastics/chemicals
• Tourism
• Metals

Items eligible for support and subsidy

The following projects by small and medium-sized enterprises can be supported under the programme:

• establishment of a new business or branch
• expansion of the capacities of a business or branch (expansion)
• diversification of production at a facility to include new, additional products ,
• fundamental change in the overall production process at a facility,
• acquisition of a business or branch that has been closed down or is threatened by closure if this takes place under market conditions and by an independent investor.

Large enterprises only qualify for support under the programme if the investment concerned is an investment in a new economic activity within the meaning of Art. 2 No. 51 of Regulation (EU) No. 651/2014:

• establishment of a new business or branch,
• acquisition of the assets of a business or branch on condition that the establishment was closed down or would have been closed down without the acquisition of such assets and further on condition that the assets are acquired by an investor who is unrelated to the seller if the new activity to be pursued with the assets acquired is not identical or similar to the activities pursued before the acquisition of the business or branch, as well as
• diversification of the activities of an establishment unless the new activity is identical or similar to the activity previously pursued at the establishment.

initial investments by large companies for straight-line diversification (support for new products added or new process innovations is subject to prior approval by the European Commission from case to case.

Investments by large companies are also eligible if these investments enabling them to go beyond national environmental standards and norms in the EU or, in the absence of such standards, to improve environmental protection (environmental protection aid). Expenditure eligible for support must total at least €100,000 for a project to qualify.

Support is available for tourism projects in the fields of health tourism in state-recognised spa and health resorts, cycling and water tourism as well as projects that contribute towards the development of innovative products or that supplement existing tourism products. Support for relocation investments from Berlin to Brandenburg is only available in exceptional cases subject to approval of the relevant economic administration authorities.

Support and subsidy procedure

A pro-rata grant is available for expenditure eligible for support. Applicants can choose between real-capital and wage-cost related grants. Support can also be granted in conjunction with a subordinated loan.

Terms and conditions

A pro-rata grant is available for expenditure eligible for support. Applicants can choose between real-capital and wage-cost related grants.

Maximum support rates

Support is available up to a maximum share of 10 percent. Basic support is generally provided at a rate of 5 percent.

Fulfilment of structure effects influences the amount of support granted. The support rates determined can be increased by 10 percent for medium-sized enterprises. A 20 percent mark-up is possible for small enterprises.

Another 10 percent mark-up can be granted in the districts of Spree-Neiße, Märkisch-Oderland, Oder-Spree, Uckermark and Barnim as well as the cities of Frankfurt (Oder) and Cottbus.

Description of the application procedure

Applications must be submitted to ILB. Overall financing of the project must be generally confirmed in the application by the applicant's bank.

The budget, factual and legal situation at the time of approval is relevant for support and the amount granted.

Period of availability

The Directive came into effect on 01 January 2018 and will terminate on 31 December 2020.

Need further information

If you have any questions, please call ILB's customer service staff at 0331 660-2211 (info line for business and infrastructure issues).

Other important information

• Grants are generally secured by a guarantee issued by a shareholder, bank or third party for shareholder shareholdings of 25 percent or more in the company's share capital or 25 percent of voting rights corresponding to the percentage share.
• If the number of existing, permanent jobs is not increased by at least 15 percent, support is only granted if the annual average of the investment sum is at least 50 percent higher than average depreciation and amortization for the past three years. This condition is considered to be fulfilled in the case of a newly created or acquired facility. Furthermore, the eligible costs for supporting investment for
• • fundamental changes in the production process must be higher than the depreciation of the assets related to the activity to be modernised carried out over the past three financial years, and/or
  • diversifying production at an existing facility must be posted at least 200 percent above the book value that was posted in the financial year preceding the commencement of work on the re-used assets.
• The project must start within 6 months after the approval notice has become final and binding. The investment period totals 36 months max.
• The facility supported must continue to operate for at least five years after the investment period has ended.
• The characteristics of assets and permanent jobs supported must remain unchanged for at least five years after completion of the investment project.
• The characteristics of hotels, B&Bs, holiday homes as well as charter boats used for accommodation must remain unchanged for ten years.
• Support is cut by 50 percent if temporary workers account for more than 10 percent of the facility's workforce.
• Enterprises where more than 30 percent of workers at the facility are temporary workers do not qualify for support.