€20 million earmarked for small businesses to support innovation and “green” solutions

Micro, small, and medium-sized enterprises (SMEs) operating within the territory of Local Action Groups (LAGs) will have access to €19.9 million to implement innovative solutions. The new procedure, part of the “Competitiveness and Innovation in Enterprises” Program 2021 – 2027, is a key instrument of European cohesion policy for the balanced development of regions and the stimulation of the economy in smaller communities.

The procedure is currently open for proposals and comments on the draft guidelines, with the deadline for the public consultation set for April 23, 2026. If there are no significant changes, the official submission of applications is expected to begin in May 2026, according to the Regional Information Center – Lovech.

Support Parameters

The investment is aimed at companies planning to introduce new products, processes, and digital technologies. It is structured into two main priorities with different budget allocations, both aimed at comprehensive business modernization.

The first priority has a budget of €10.5 million and focuses on innovation and growth, supporting the implementation of modern technologies in strategic areas such as ICT, mechatronics, and biotechnology.

The second priority has a budget of €9.4 million and is directed toward the circular economy, promoting the transition to resource-efficient production through the implementation of clean and low-carbon solutions.

The financial structure of the procedure provides for grant funding for each individual proposal to range between €15,000 and €102,500.

European funding under the Cohesion Policy may cover up to 75% of the total estimated investment costs, requiring enterprises to provide the remaining funds through their own contribution.

An important requirement for applicants is that all planned activities for implementing the innovative solutions must be scheduled and carried out within a period not exceeding 12 months from the project’s start date.

Who can apply?

Eligible beneficiaries are micro, small, and medium-sized enterprises registered no later than the end of 2023. Applicants must also meet specific minimum turnover requirements to ensure the sustainability of the innovation projects.

The procedure is highly specialized, directing resources toward strategic sectors with high growth potential. In the field of digitalization, projects related to information and communication technologies and high-tech solutions are encouraged.

The industrial focus is on mechatronics and microelectronics, while in the green economy sector, the emphasis is on biotechnology, as well as on the implementation of low-carbon and eco-friendly solutions for businesses.

Last but not least, European cohesion funds will also support the development of creative and cultural industries, which play a key role in the economic revitalization of the regions.

Translated with DeepL.