Shopware Agency
Shopify Agency
JTL SHOP 5 Agency
Gambio Agency
Magento Agency
WooCommerce Agency
PrestaShop Agency
Xentral Service Partner Enterprice
VARIO Service Partner
Odoo Agency
Amazon Agency
eBay SEO
Otto SEO
Google SEO
Google Ads
Social Media
Facebook Ads Agency
Instagram Ads Agency
ChatGPT Agency
Link Building Agency
Ecommerce Tutorials
eCommerce Podcast
SEO Tools
AI Tools
eCommerce Facebook Group
Getting digitization funding from the state in the Corona phase
What to consider?
The digital funding in the Corona phase, is intended on the one hand to close the gaps in the infrastructure in Germany, and on the other hand to assure you financial support. In this video, you can find out how you too can get your digitization funding from the state and what you need to bear in mind.
Getting digitization funding from the state - Wr explains how it works
The Corona crisis and all the measures and conditions that go along with it have inadvertently turned a spotlight on Germany’s infrastructure. The digital infrastructure, in particular, initially had a major impact there, for example. in the school system, but also in other medium-sized companies, did not cut a good figure – which was demonstrated by the fact that the home office obligation desired by the government simply could not be implemented in some cases. Of course, a craftsman can’t do his work at home, but if an office worker can’t transfer his work to a home office because of the company’s lack of IT infrastructure, then there’s a need for action. The German government has responded to this need by launching the “Digital Now” investment grant program. This article explains in detail what this digital funding program is about, who receives the funding and how you can possibly benefit from it. But first of all What is it exactly?
What is "Digital Now"?
The “Digital Now” support program is a funding program of the German Federal Ministry for Economic Affairs and Energy that is intended for small and medium-sized enterprises and is designed to drive digitization within this company. Accordingly, the program offers financial subsidies and is intended to encourage companies to invest more in digital technologies as well as in the qualification of their employees. And who can apply for this funding now?
Small and medium-sized enterprises from all industries. This then includes companies with 3 – 499 employees. What do you have to fulfill in the process?
Ultimately, you don’t get the funding just like that; you have to submit a digitization plan to the BMWi.
Content of the digitization plan and the criteria to be met
The content of this plan should be:
- The description of the digitization project
- The type and number of qualification measures
- The status quo, i.e. the current state of digitization in the company
- The goals to be achieved with the promotion
- As well as an exemplary presentation, how the organization in the company is made more efficient, how the company opens up new business areas, how it develops a new business model and/or how its market position is strengthened.
To this digitization plan must continue to be met, these criteria.
- The company must have a permanent establishment or branch in Germany where the investment is made
- The project must not have started at the time of grant approval
- After approval, it must usually be implemented within twelve months
- The company must be able to prove the use of the subsidies
Funding can be applied for quasi-directly, but can also be applied for up to and including 2023.
Guidelines for the "Digital Now" funding program
Since the funding objectives that the government hopes to achieve with this funding will be of rather less interest to you, we prefer to go into the funding amount and the application process. If you would still like to find out more about this, the link will take you to the
Guidelines for the “Digital Now” support program
. Regarding the amount, the guidelines state:
“The grant is awarded as a non-repayable subsidy (project funding) in the form of partial financing. To limit the negative impact of the Corona pandemic, the funding rate for all applications received by June 30, 2021 is set at up to 50 percent plus eligible bonus percentage points (see Section 5.2.3). For applications received on or after July 1, 2021, a funding rate is set at up to 40 percent plus eligible bonus percentage points.“
Getting Digitization Funding from the State - A Practical Example
It should be noted that this 50% or 40% from July 1 depends on the number of employees. If your company exceeds the 50 mark, the maximum promotion is 5% less. From the 251st employee, it is then another 5% less. There are then increased funding quotas added to these general funding quotas. If necessary, you can read about which ones in section 5.2.3 of the guidelines.
This means that the following example can then arise from this.
A fishing store from Munich with a staff of less than 50 employees would now like to receive funding for a new web presence with online sales as well as new technological infrastructure, e.g., a new website. VOIP telephony or even electronic receipt of goods can count. The investment volume for this is €40,000. Since the owner of the fishing store had his project accurately laid out by an agency in a digitization plan before July 1, his project will accordingly be funded with 20,000€.
But how does the procedure work now?
Getting digitization funding from the state - Here's how the application process works
The first task is to write the aforementioned digitization plan, fill out the de minimis statement and submit sample bids. De Minimis grants are also called Bagatellen grants and in that case require a declaration to ensure that this grant does not conflict with or would be ineligible for any other grants you may be eligible for. If you have written your application in accordance with the law and as stipulated by the Federal Office for Economic Affairs and Energy, it should be approved. Subsequently, it is necessary to fill in the proof of use – which contains, among other things, the factual report and proof of paid invoices. Once the proof of use has been checked and approved, payment is made to the company. What sounds like complicated German bureaucracy can be, if you’re not familiar with it. That’s why in some cases it can make sense to save yourself the time and hire an agency to take these steps off your hands. We at eBakery are happy to support you and would be happy to help you with the application process. If you are interested, please make an appointment directly.
Our tips for obtaining digitization funding
If you prefer to go it alone, we summarize what you have to consider. The premise is to read through the guidelines. Submits the application in a timely manner. This is meant in two ways. First, you can benefit from 10% more funding if it is applied for before July 1. On the other hand, make the request for you well in advance of the start of the digitization project. For we recall the points to be observed: The project must not have started at the time of grant approval. Check for yourself if there is an increased funding rate for your individual case, which could be the case if you participate in a value network or by investing in IT security. Finally, note that companies without participation in a value chain will be subsidized up to a maximum of 50,000€, companies with this participation with up to a maximum of €100,000.
If you need help with this, contact eBakery
I hope we could provide a little clarification with this video.
If you have the desire to take advantage of this funding but are reluctant to deal with the bureaucracy, please make an appointment and let us help you overcome the hurdle.
Haben Sie Fragen oder brauchen ein individuelles Angebot? Zögern Sie nicht, uns zu kontaktieren.
