Common Mistakes When Applying for Tenders

Applicants often make the following mistakes:

• Including ineligible costs (e.g., labour costs, while the eligible costs of the public tender are only the costs of purchasing new technological equipment),
• Incorrectly classifying their company into size categories (micro, small, or medium-sized enterprises) or applying despite restrictions regarding eligibility to apply,
• Submitting applications for already started investments.

To avoid these mistakes, it is important to consider the following facts:

• State aid granted by SPS is intended only for micro, small, and medium-sized enterprises according to the common European definition of small and medium-sized enterprises unless otherwise specified in the public tender.
• Companies often overlook that state aids usually fall under common European rules for granting such aids. One of these rules is that state aid must be necessary and cannot be used retroactively. Investments that are already in progress and have started cannot be supported and co-financed by SPS. The effects are verified based on the targeted use of loans and subsidies for projects that are just beginning to be implemented.
• Sometimes companies do not strictly follow the rules regarding eligible costs. Eligible costs are precisely defined, and all other costs that an entrepreneur wishes to claim in later stages of implementation and are not presented in the application are ineligible and must be rejected by SPS.
• State aid should create broader economic effects such as new jobs and higher average added value per employee. If these effects are not achieved, state aids will prove to be ineffective. Creating growth and development of the company requires maturity, expertise, professional business conduct, and the right amount of entrepreneurial responsibility.
• Sometimes entrepreneurs lack ambition regarding the further development of the company and are intolerant of the common European rules for granting state aid to the entrepreneurial sector. The rules are the same for all member states and must be followed. Sanctions can be severe – including the repayment of state aid with interest. Each rule is quickly associated with bureaucratic procedures. We strive to make these procedures as tailored to the needs of companies as possible, but unfortunately, they cannot be avoided.