What do aid intensity limit and cash grant equivalent mean?
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This type of state support involves the allocation of funds to compensate enterprises for part of their investment investments. The Enterprise Development Grant (EDG) is of particular importance. This program is relevant for existing businesses, and its purpose is to support the acquisition of equipment by manufacturing enterprises.
Particular aid intensity limits are specified for each approved scheme. These determine the maximum level of aid that can be given under the rules that apply to your project, and are expressed as a percentage of the total costs eligible for support. In the case of grants it is relatively easy to translate this into the amount of money that can be provided; for soft loans and guarantees however the aid element will have to be calculated e.g. for loans this would be the difference between the soft and commercial interest rates. This aidelement is called the cash grant equivalent the Commission website has details on how to work this out for soft loans and other measures.
