Finance your innovation with Innovation Credit
Groundbreaking innovations often require a substantial amount of money. However, not every entrepreneur has the financial scope to make the necessary investments. Do you want to use every possible opportunity to get your innovation off the ground? Then apply for the Innovation Credit.
The Innovation Credit
The Innovation Credit provides financing for your project. The amount of credit depends on the size of your company.
- Small SMEs: 45% of your development costs.
- Medium SMEs: 35% of your development costs.
- Large enterprises: 25% of your development costs.
The maximum credit amounts to € 5 million for clinical development projects, and € 10 million for technical development projects. Development costs include, among other things, in-company labour costs, materials, depreciation, outsourcing costs, travelling expenses and costs of patent applications.
To apply for the Innovation Credit, you need to complete six steps:
Prior to your application, you have to submit a concisely described project idea in a Quickscan. Based on this application, an advisor of the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland, RVO) will inform you of your chances of being awarded a subsidy, and if necessary, advise you on how to increase your chances.
The Innovation Credit can be applied for throughout the year, as long as the budget permits this. An application consists of three plans.
- Business plan
In this plan, you describe the market size, competitive position (such as unique selling points), the value for the customer and the earnings model. This information should be substantiated with as many figures as possible.
- Project plan
In the project plan, you describe the project with an analysis of the technical status, technical feasibility, and the innovative character of your idea. A technical risk analysis leads to a systematic project plan with clear, measurable milestones.
- Financing plan
You provide a project budget (according to IK prescription/financial format) and explanatory notes to the required finances in a cash flow statement. This needs to include the repayment of the credit and all sources of finance.
In addition to these plans, you will also need to complete the international SME assessment. The relevant outcome should be added as an appendix.
After receiving your documentation, the RVO will check the completeness. If the application is complete, an intake interview will follow with an RVO project advisor during which you can briefly explain your plans and answer questions. Based on this information, the RVO will consider whether the project is in line with the objective of the scheme. If this is the case, you will elaborate the application before it is sent to an external advisory committee. This committee will also provide an opinion. Based on this opinion and the initial assessment, the RVO will take a final decision.
- Obtaining a right of pledge
If a subsidy is granted, the RVO will draw up a decision and a deed of pledge, which will entitle the RVO to a first lien on all tangible and intangible assets created within the framework of the project. This lien also applies to all intangible assets that build on the technology developed with the credit. In certain cases, the RVO may also request a first lien on existing or already available assets that are crucial to the performance of the project. In the case of a majority shareholder and/or decisive major shareholder(s), the RVO can also impose the condition that they guarantee to fulfil all your financial obligations. Only if you meet these conditions will the RVO approve the application.
When the Innovation Credit is granted, the RVO approves the proposed project budget, which is divided into reporting periods. The end of a reporting period usually coincides with a milestone in the project plan. After each agreed reporting period (usually 6 to 12 months), you must prepare a progress report, according to the ‘Credit Progress Report template’. On the basis of this report, the project plan and/or the budget may be adjusted. The RVO will discuss the report with the company during a company visit. After the final report, the total credit and repayment will be determined.
- Payment scheme
After completion of the project, you will have to repay the credit and the calculated interest. Within thirteen weeks after the final period, you have to submit a final report, after which you can apply for a decision. After completion of the project and receipt of the final report, the RVO will determine the credit and you will start repaying.
Would you like to know more?
Are you interested in the Innovation Credit? The Subsidiefocus consultants can guide you through the entire process, from your application to the repayment of the Innovation Credit. This implies that you can focus on what is truly important, namely your innovation. Then please contact Roy Hoven, manager Subsidiefocus, by calling +31 (0)73-6465475 or send Roy an email.