For companies and the self-employed, it is essential to be up to date on what Next Generation funds are, because they can apply for aid related to their businesses and thus improve competitiveness. This economic support program designed by the European Union started in 2021 as a result of the Covid-19 pandemic and will be in force until 2026.
What are the Next Generation European funds?
With this name, a set of temporary financial instruments is known (we have already indicated that they will be in force until 2026), endowed with 750 billion euros, which are being distributed among all the Member States of the European Union.
The main objective is to be able to provide a coordinated response to the economic and social consequences of the pandemic. States are receiving the money progressively, and must use it to grant reimbursable loans and non-refundable transfers; aid whose main recipients will be companies and professionals.
Beyond the main objective to which we have referred, the aid of the Next Generation funds also pursues other goals, such as promoting economic, social and territorial cohesion between the different territories of the European Union; strengthening both the resilience and the adjustment capacity of the States; and supporting ecological and digital transitions.
What do they consist of and how are they structured?
Since the funds pursue different objectives, they have also been structured in different instruments.
Mechanism for Recovery and Resilience (MRR)
It is endowed with a total of 672.5 billion euros to be distributed among all EU Member States, with the aim of supporting investments and reforms that encourage a sustainable and resilient recovery, while promoting the ecological and digital priorities that the European Union defends.
Endowed with 47.5 billion euros, it is a structural fund with more flexibility than the previous one, and which focuses on promoting the ecological, digital and resilient recovery of the economy.
European Agricultural Fund for Rural Development (EAFRD)
The two that we have just mentioned are the most important instruments around which Next Generation aid is articulated, but a part of the available money will also be allocated to other programs such as the EAFRD, which is responsible for financing the European rural development policy.
Just Transition Fund (FTJ)
It is a novelty, an instrument aimed at improving the cohesion policy. It provides support to territories that have to face serious socio-economic challenges as a result of the process of transition to climate neutrality.
It seeks to promote research and innovation within the European Union, through a program planned until the year 2027.
The fund wants to contribute to the encouragement of investments in Europe, to build what will be the European economy of the future.
Its purpose is to improve the protection of European citizens from disasters, and advance in the management of emerging risks.
Who can benefit from these funds?
The general rule is that every citizen of the European Union can apply for European funding through the different programs that are launched. In the case of Next Generation funds, entrepreneurs and professionals can access aid derived from instruments such as the Recovery and Resilience Mechanism.
Based on the recovery plan presented by Spain to be able to have access to Next Generation funds, SMEs and the self-employed have an essential role in the economy and must face important challenges in terms of productivity, competitiveness and digitization. Precisely for this reason, in our country, the main recipients of these funds are self-employed professionals, and small and medium-sized enterprises, even micro-SMEs.
Types of grants from the Next Generation fund
The measures launched in Spain advocate promoting entrepreneurship and business growth, facilitating the digital transition, promoting business innovation and commerce, and promoting internationalization.
Digitization is one of the main priorities set by the European Commission, and also one of the most relevant axes of the Recovery Plan, so different programs have been launched so that SMEs, micro-SMEs and freelancers can have the tools they need to start or continue advancing in their process of digitization and technological innovation.
In this sense, the most important aid is the Digital Kit Program, which offers large-scale subsidies for basic digitization. However, there is also the Agents for Change Program, which subsidizes SMEs the cost of incorporating a professional to guide them in the process of digital transformation.
In addition, the Accelerates SME 2.0 infrastructure has been expanded, which is a support tool for SMEs and professionals, and offers advisory and training services on digitization.
Now that you know what Next Generation funds are, it’s time to take advantage of them to improve your business. There are already many of our clients who have helped to finance the projects they have developed with us through these programs.
Grow your business with Acceleralia! We help you finance your projects with the right program for you. Our specialized consultants will guide you through every step of the process so that you can make an informed and safe decision. Don’t let financing be a barrier to your business growth and innovation!