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SME Innovation Support in Local Action Group (LAG) Territories – Grants up to €102,500

  • 4 days ago
  • 3 min read

This call has a strict territorial focus and applies exclusively to the territories of Local Action Groups (LAGs) in rural areas that have received approved complementary funding under the Competitiveness and Innovation in Enterprises Programme (CIEP).


Objective of the Call

The objective of the procedure is to provide financial support to small and medium-sized enterprises (SMEs) for implementing innovations based on new or improved products and/or business processes.

Funding is provided under the following programme priorities:


Priority 1 – "Innovation and Growth"

Specific Objective RSO 1.1"Developing and enhancing research and innovation capacities and the uptake of advanced technologies."

This priority supports projects falling within the following Innovation Strategy for Smart Specialisation (S3 Strategy) 2021–2027 thematic areas:

  • Informatics and ICT;

  • Mechatronics and Microelectronics;

  • Industries for Healthy Living, Bioeconomy and Biotechnology;

  • New Technologies in Creative and Recreational Industries.


Priority 2 – "Circular Economy"

Specific Objective RSO 2.6"Promoting the transition to a circular and resource-efficient economy."

This priority supports projects within the S3 thematic area:

  • Clean Technologies, Circular and Low-Carbon Economy.


Eligible Applicants

Applicants must meet all of the following conditions:

  • Be registered as traders under the Bulgarian Commercial Act or the Cooperatives Act.

  • Be registered no later than 31 December 2023.

  • Qualify as micro, small or medium-sized enterprises (SMEs).

  • Have achieved the following average annual net sales revenue for the financial years 2023, 2024 and 2025:

Enterprise Category

Minimum Average Annual Net Sales Revenue

Micro and Small Enterprise

BGN 50,000

Medium Enterprise

BGN 200,000

In addition, applicants must:

  • carry out their business activities within the territory of an eligible Local Action Group (LAG); and

  • apply for activities that will be implemented within that same territory.


Total Budget

The total budget of the procedure amounts to:

EUR 19,976,187.59, of which:

  • EUR 1,949,279.84 is allocated to Transition Regions;

  • EUR 18,026,907.75 is allocated to Less Developed Regions.

Each Local Action Group has an individual budget allocated under the relevant programme priorities.


Funding Intensity

The grant may cover up to 75% of eligible project costs, without exceeding the maximum aid intensity applicable to the respective LAG territory.


Minimum and Maximum Grant Amount

Minimum Grant

Maximum Grant

EUR 15,000

EUR 102,500

Applicants should also take into account the maximum grant amount specified in the approved Local Development Strategy of the respective LAG.

Important

The requested grant amount must not exceed 100% of the applicant's average annual net sales revenue calculated for the financial years 2023–2025.


Eligible Activities

Projects must include the implementation of at least one enterprise-level innovation, related to:

  • a new or significantly improved product (goods or services); or

  • a new or significantly improved business process.

Projects must fall within one of the five thematic priority areas of the Innovation Strategy for Smart Specialisation (S3) 2021–2027 described above.


Eligible Expenditures

Tangible Fixed Assets

Funding may be used for the acquisition of:

  • machinery;

  • production equipment;

  • installations;

  • other tangible fixed assets required for implementing the innovation.

Intangible Fixed Assets

Eligible expenditures include:

  • software;

  • patents;

  • utility models;

  • industrial designs;

  • licences;

provided they are necessary for the implementation of the innovation.


Application Procedure

Project proposals must be submitted electronically through the ISUN Electronic Management and Monitoring Information System.


Application Deadlines

First Application Window

10 July 2026 – 14 September 2026 (16:30 EET)

Second Application Window

14 January 2027 – 15 March 2027 (16:30 EET)


Eligible Territories

The procedure applies only to enterprises operating within eligible Local Action Group (LAG) territories.

Eligible municipalities are located within:

  • Southwest Region – including the LAG territories of Botevgrad, Kostinbrod, Svoge, Nevestino, Kyustendil, Treklyano, Boboshevo, Kocherinovo, Rila, Simitli, Kresna, Strumyani, Elin Pelin, Gorna Malina, Gotse Delchev, Garmen, Hadzhidimovo, Slivnitsa and Breznik.

  • Southern Regions (Southeast and South Central) – including the LAG territories of Parvomay, Dimitrovgrad, Pomorie, Perushtitsa, Sungurlare, Elhovo, Bolyarovo, Momchilgrad, Krumovgrad, Madan, Rudozem, Ardino, Nedelino, Tvarditsa, Karnobat, Peshtera, Bratsigovo, Stambolovo, Kirkovo, Zlatograd, Rakitovo, Straldzha, Dzhebel, Aytos, Devin, Smolyan, Kaloyanovo and Saedinenie.

  • Northern Regions (Northwest, North Central and Northeast) – including the LAG territories of Lukovit, Roman, Tutrakan, Slivo Pole, Avren, Varna, Isperih, Byala Slatina, Novi Pazar, Kaspichan, Aksakovo, Devnya, Suvorovo, Lom, Belene, Nikopol, Pavlikeni, Polski Trambesh, Dulovo, Dolni Chiflik, Byala, Kotel, Varbitsa, Antonovo, Omurtag, Krivodol, Boychinovtsi, Balchik, General Toshevo, Dryanovo, Tryavna, Troyan, Apriltsi, Ugarchin, Kavarna, Shabla, Gorna Oryahovitsa, Cherven Bryag, Iskar, Teteven, Levski and Sukhindol.

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