European funding has
immediately represented an excellent opportunity for many people seeking liquidity to advance their projects. But how do these loans work, and how should one apply for one? Since precise information on the subject is still lacking online, we’ve decided to create this detailed guide to European funding.
In this guide, you’ll discover how these special subsidized loans, provided by Europe and largely managed by the regions, work, what benefits they offer, and how to apply
. You’ll also discover that European loans can be applied for by young people, small businesses, researchers, or agricultural enterprises.
How European funding works
First, it should be noted that the European Union provides funding for various types of projects. The sectors involved are extremely diverse, but all, or nearly all, have social or strategic value. Here are some examples taken from the European Union website:
- urban and regional development
- employment and social inclusion
- agriculture and rural development
- maritime and fisheries policies
- research and innovation
- humanitarian aid
Therefore, entering these sectors is very important because it allows you to benefit from these funds , which offer significant benefits. In some cases, these are non-repayable loans , which are granted without the need to repay the amount received.
It should also be noted that, for a long time, European loans were synonymous with financing for female entrepreneurship , which helped launch several businesses primarily run by women. The distinctive feature of these products, as we’ve mentioned, is that they have a social or economic growth purpose and, therefore, are more advantageous than standard bank loans.
In many cases, there is a non-repayable portion, but even where this isn’t the case, there is still a significant discount on the interest rate or on the repayment methods of the capital.
European funding for young people
There are two different types of European loans for young people: the Erasmus project and the Youth Fund . Both offer subsidized loans for young people for training or business start-ups. The European Union website doesn’t offer much in-depth information on these products.
The Erasmus program will be discussed in detail in a dedicated article on our website in the coming weeks, specifically to provide assistance to interested students. Essentially, it offers the opportunity to study in a country other than your own without having to spend anything, thanks to European funding.
Then there are loans aimed at employment , and in this case, we’re talking about European funding for youth entrepreneurship. These are a series of funds managed and distributed by the Regions that finance businesses developed in specific sectors, with a majority of members under 35 years of age.
European funding for agriculture
Europe has allocated significant funds to support farmers who implement environmentally friendly cultivation policies. Resting fields and avoiding the use of pesticides or other invasive cultivation techniques are the basis for receiving these non-repayable grants.
But how exactly do these incentives work? It should be noted that European farmers receive a cash subsidy calculated based on their land area, only if they employ environmentally friendly farming methods designed to preserve biodiversity, water and soil quality, and limit harmful emissions.
European funding for small businesses
Small and medium-sized enterprises operating in specific sectors (health, agriculture, environment, research and technological development) can take advantage of the numerous funds made available by the European Union.
These are mostly mixed loans, with a portion of the loan being non-repayable and another portion carrying a subsidized interest rate. The expenses eligible for these loans are primarily innovative investments and research and development. To access these funds, you must apply directly for European calls for proposals or seek support from the relevant local offices.
As we’ve said, European funding is a truly excellent opportunity to obtain liquidity through grants or at favorable interest rates . If you fall into one of the categories targeted by the funds, you can enjoy significant benefits. Our advice is to contact the relevant regional offices, because, as we’ve mentioned on other occasions, it is the regions themselves that distribute European loans throughout Italy.