Up to €500,000 in grant for investment in technology and innovation in rural Baden-Württemberg.
"Spitze auf dem Land! Technologieführer für Baden-Württemberg" is the technology funding line of the rural development programme (ELR) and is co-financed from the ERDF 2021–2027. SMEs with fewer than 100 employees in the eligible rural areas of Baden-Württemberg receive an investment grant for buildings, machinery and plant where the project serves to introduce new or improved products and services. Small companies (< 50 employees, turnover no more than €10m) receive 20% and medium-sized companies 10% of eligible investment costs. The ceiling is €400,000 (standard) or €500,000 where a contribution to the bioeconomy and circular economy is evidenced. The procedure has two stages and is competitive: an admission application through the municipality (deadlines 28 February and 31 August), then, after the ministry's planning decision, a formal funding application to L-Bank.
Eligibility
- SME status: fewer than 100 employees (FTE) at the time of application; linked and partner companies are included under EU Recommendation 2003/361/EC.
- The investment site is in the eligible rural area under the Baden-Württemberg state development plan (rural area in the narrower sense, or a densification or fringe zone); urban districts and conurbations are excluded.
- An innovation link: at least one new or improved product or a new service is introduced in the company; pure replacement investment with no innovation element is not eligible.
- Evidence of technology leadership potential: through its capabilities and innovative strength the company has to be able to contribute to Baden-Württemberg's technology leadership.
- A positive statement from the municipality: the admission application necessarily goes through the municipality with a positive municipal statement.
- No early start: the investment (a binding order, contract award, start of construction) may only begin after L-Bank's approval notice.
- Not an undertaking in difficulty within the meaning of Art. 2 no. 18 GBER (Regulation (EU) No 651/2014).
- No outstanding EU recovery order (Art. 1 (4) (a) GBER).
- No sectoral exclusions: excluded are the sectors under Art. 1 (2)–(5) GBER (steel, coal, shipbuilding, synthetic fibres, parts of the transport sector) and Art. 1 of de minimis Regulation 2023/2831 (primary agricultural production, fisheries, aquaculture).
- No double funding: identical investment costs may not be funded in parallel through other EU, federal or state programmes.
- A minimum investment volume of around €1m / a minimum grant of €200,000 (secondary sources; verification against the current ELR administrative provision is outstanding).
Eligible costs
- Buildings and structures: new build, extension or modernisation of business premises with a direct link to the innovation project.
- Machinery and plant: production plant and technical installations with an innovation link.
- Operating equipment with a direct link to the innovation project.
- Not eligible: land purchases, pure replacement investment with no innovation link, ongoing operating costs, staff costs, R&D costs without an investment character, consultancy services, costs incurred before L-Bank's approval notice (an early start), and VAT where input tax is deductible.
Common pitfalls
Starting the work early
Binding orders, contract awards or the start of construction before L-Bank's approval notice lead to outright rejection. Planning services and obtaining quotes are harmless as long as no binding contract is concluded.
The wrong area
The project has to lie in the eligible rural area under the Baden-Württemberg state development plan. Urban districts and conurbations are excluded. Clarify the classification with the regional council or the municipality before applying.
A missing or negative municipal statement
Without a positive statement from the municipality, the admission application isn't forwarded to the district office and regional council. Make first contact with the municipality at least 6–8 weeks before the deadline.
The SME threshold exceeded through group membership
Linked and partner companies are included in the SME test. Belonging to a group with a large company removes SME status and rules out funding.
Pure replacement investment with no innovation link
Investment with no evidenced innovation or technology leadership link is rejected by the expert commission. A concrete delimitation from the state of the art and at least one new product or service are required.
Double funding of the same investment costs
Identical investment items may not be funded simultaneously through other EU, federal or state programmes. A combination is only permitted with clearly separated investment items.
The application process
- 1 — Check the area and SME status. Before any other step, make sure: is the investment site in the eligible rural area under the state development plan? Does the company have fewer than 100 employees (including linked companies)? Get confirmation from the responsible regional council or the municipality.
- 2 — First contact with the municipality (6–8 weeks before the deadline). The municipality is the mandatory application route at stage 1. Early coordination for the positive municipal statement is decisive. Next deadlines: 28 February and 31 August each year.
- 3 — Prepare the admission application (stage 1). Assemble an informal admission application with a company profile, a project description (the innovation element, the state of the art, market potential, the contribution to technology leadership), an investment plan (eligible and non-eligible separated), a viability assessment and ELR form no. 5.
- 4 — Submit through the municipality. The municipality forwards the admission application with its positive statement to the responsible district office and the regional council's processing office. Deadlines: 28 February and 31 August.
- 5 — Selection by the expert commission and the ministry. The regional council checks completeness and eligibility. An expert commission assesses application quality, market potential, technology and innovation potential and the bioeconomy contribution competitively. The ministry decides and issues the planning decision (typically 2–4 months after the deadline).
- 6 — Formal funding application to L-Bank (stage 2). After a positive planning decision, the company files the formal funding application with L-Bank. To be attached: an SME declaration, a de minimis declaration, a self-declaration that you are not an undertaking in difficulty, a commercial register extract, the last 2 sets of annual accounts, an investment plan with quotes and a financing plan.
- 7 — Wait for L-Bank's approval; do NOT start investing. L-Bank assesses the state aid position (Art. 14 GBER or de minimis) and approves the grant (typically 2–3 months). Only after the approval notice may the investment begin.
- 8 — Carry out the investment and draw down funds. Staged drawdowns against a statement of use are possible. Keep all invoices and proof of payment.
- 9 — Statement of use to L-Bank. Once the investment is complete, submit a final report (status, indicators, photo documentation where relevant, employment effects), original invoices, proof of payment and an inventory list where relevant.
How upsmart helps
We match your project against the eligible area (the state development plan), the SME group test (EU Recommendation 2003/361/EC) and the cumulation rules (Art. 14 GBER, de minimis) before you invest time in the municipal route. We keep an eye on the 28 February and 31 August deadlines and write the draft applications ready for assessment; your team decides. Fixed terms, no exclusive mandate.
Combining it with other programmes
A combination with other programmes is possible provided no identical investment costs are funded twice (the administrative provision to § 44 LHO BW; the GBER and de minimis cumulation rules). Permitted are, for instance, L-Bank loans (Innovationsfinanzierung 4.0) for unfunded parts of the investment. Consultancy around the project can be funded separately through Coaching für Innovation BW (the ministry / RKW) or go-inno (federal), because those are different cost items.
Frequently asked questions
SMEs with fewer than 100 employees (full-time equivalents, linked companies included) that have an operating site or a planned investment site in the eligible rural area under the Baden-Württemberg state development plan. Urban districts and conurbations are excluded. The project has to serve the introduction of at least one new or improved product or service.
20% of eligible investment costs for small companies (< 50 employees, annual turnover no more than €10m) and 10% for medium-sized companies (50 to fewer than 100 employees). The grant is capped at €400,000, or €500,000 where a bioeconomy or circular economy contribution is evidenced. According to secondary sources the minimum grant is €200,000 (to be verified formally).
The procedure has two stages. At stage 1 the company submits an informal admission application through the municipality to the district office and regional council (deadlines: 28 February and 31 August). After a positive planning decision from the ministry, stage 2 is the formal funding application to L-Bank. The investment may only begin after L-Bank's approval notice.
An early start — meaning any binding order, contract award or start of construction before L-Bank's approval notice — leads to outright rejection or clawback of the funding. Planning services and obtaining quotes are harmless as long as no binding contract is concluded.
Yes, provided no identical investment costs are funded from two programmes. Examples of permitted combinations: an L-Bank loan (Innovationsfinanzierung 4.0) for unfunded parts of the investment; Coaching für Innovation BW or go-inno for consultancy around the project. Coordination with the regional council and L-Bank is advisable.
Read on in the blog
Funding strategy across the innovation process
Primary sources
- Förderdatenbank des Bundes — ELR Spitze auf dem Land!— Federal Ministry for Economic Affairs and Climate Action
- MLR Baden-Württemberg — press release and programme page, Spitze auf dem Land!— Ministry for Food, Rural Affairs and Consumer Protection Baden-Württemberg
- ERDF BW — Spitze auf dem Land!— ERDF Baden-Württemberg
- L-Bank — ELR investment in rural areas— L-Bank (the state bank of Baden-Württemberg)
- MLR Baden-Württemberg — rural development programme (ELR) overview— Ministry for Food, Rural Affairs and Consumer Protection Baden-Württemberg
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