Types of funding

There are different types of subsidy for different phases of a business, such as founding a company, taking over, etc.

Investment subsidies – cash grants

Grant support is mainly relevant for innovation, research, growth and cooperation projects, investment in environmental measures and the recruitment and training of staff. The amount of the grant is specified in the funding guidelines and is calculated as a percentage of the costs.

In principle, the cash grants do not have to be repaid.

The project costs often have to be interim-financed because many grants are only paid out after the project is completed. For some grants there is the possibility of a payment on account depending on the progress of the project.

Subsidised loans

Borrowed capital can be used with preferential conditions (low interest rate, costs of loan processing, application without red tape, etc.). This debt must be secured and repaid.

Subsidised loans are available, for example, for modernisation and expansion investments, innovation projects, R&D projects and internationalisation measures by federal and state funding agencies. In certain cases, borrowing can also be for running costs.

Guarantee and liability

If the collateral offered by the funding applicant for a bank loan is not sufficient, institutional guarantors may be called upon to provide default liability vis-à-vis the financing bank.

Guarantees and liabilities are provided by the Republic of Austria and by national companies.

The counter-liability makes it possible to offer the financing institution first-class security. The Bank’s lending risk is reduced and lending conditions are improved.

Guarantees and liabilities are available for investment projects as well as for the purchase of equipment or business security. There are differences as regards the term, the liability ratio and the credit volumes to be covered.

For investment loans, liabilities or guarantees of up to 80 per cent of the loan amount are generally available. The cost of assuming a guarantee or liability depends on the risk taken.

Venture capital and equity investments

Companies in the start-up phase that are unable to implement high-risk innovation projects due to insufficient funding receive support through equity investments by federal or state authorities. Equity investments are also available for financing expansion steps.

This will bring in fresh capital and provide risk capital. There are both open and silent partnerships, the investment conditions are in line with market conditions.

Subsidised consultancy services

Subsidised management consultancy services are used to transfer specific knowledge for business decisions and planning. Consulting topics include the business plan, strategy, financial planning, marketing, environmental protection, innovation management, etc. The costs of this advice are partly borne by the funding agencies.

Further information on the subsidised management consultancy can be found in the chapter "Start-up support initiativesGerman Texton USP.gv.at.


In general, these rules and regulations also apply to traders from EU Member States operating in Austria.

Further links

Translated by the European Commission
Last update: 6 February 2023

Responsible for the content: Federal Ministry of Labour and Economy

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