The Foundation for Enterprise and Innovation (EIS) has finally launched the long-awaited startup grant aimed at companies up to 3 years old, with the amount set at 20,000 euros.
The purpose of the startup grant is to encourage sustainable sales growth and job creation across Estonia for entrepreneurs with growth potential.
Companies up to three years old can receive support. They must create at least one full-time equivalent job within three months of the funding decision and pay at least minimum wage. It is also possible to create several part-time jobs, which together constitute one full-time position. Most of the support, namely 15,000 euros, is paid out after the decision is made and the previously mentioned job is created by the company. The remaining 5,000 euros are paid out at the end of the support period, i.e., two years later, provided that the full-time job still exists. The entrepreneur’s own contribution to the grant is also at least 5,000 euros.
In addition to job creation, the company’s sales revenue must also grow to 80,000 euros in the Tallinn and Tartu urban areas and 40,000 euros elsewhere in Estonia. This amounts to four or two times more than the sum of the grant.
Compared to the previous period, the requirements for expected results are lower at the regional level, i.e., the size of sales revenue outside Tartu and Harju counties. There is also an expectation to create at least one job instead of two as before. Overall, the use of the grant is simpler for companies, and the expected results are more lenient compared to the previous startup grant, but the goals associated with the grant conditions must definitely be met. If the job is not created within the required time or the sales revenue is not achieved, the grant must be repaid.
Before submitting an application, it is mandatory to undergo preliminary consulting and obtain a pre-evaluation at the local county development center. For the preliminary consultation, a business plan, financial forecasts, and CVs of shareholders and board members must be prepared. After that, an application can be submitted in the e-support environment.
The grant is funded from the European Union’s Structural Funds. The application for the grant is ongoing until the funding budget of 5 million euros is exhausted.