GRW Investitionszuschuss

The joint federal and state task “Improvement of the Regional Economic Structure”, GRW for short, is the central funding instrument of the federal government and the states for investment in structurally weak regions. It differs fundamentally from innovation funding: what matters is not primarily whether a project is technically new, but where the investment is made, what regional economic effect it has and whether the funding requirements are met at the location.

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Facts up front

Target group

Companies

Deadline

Before project start

Location

GRW areas

The GRW Investitionszuschuss – key facts at a glance

This page explains who is eligible to apply, what is funded, which requirements apply and what matters about the timing of the application.

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Type of funding

Non-repayable investment grant

Basic requirement

Investment in business premises within a designated GRW assisted area

Eligibility

In principle open to small, medium-sized and large commercial companies. Specific eligibility depends on location, sector, project and the state directive

Funding rate

Depends on the assisted-area category, company size and regional economic effect

Current assisted-area map

2022 to 2027

Timing

Application before the project begins

Details on the GRW Investitionszuschuss

Commercial investment

Funding goes to investment in tangible and intangible assets used permanently at business premises. This includes, for example, setting up, expanding, modernising or fundamentally converting business premises, as well as investment in machinery, plant or operational infrastructure.

Business-related infrastructure

Funding goes to projects that improve the economic conditions of a region, such as developing or connecting commercial areas, technology and start-up centres, tourism infrastructure or business-related local infrastructure. This funding line is generally aimed at municipalities, associations of municipalities or other public bodies.

Without business premises in a designated GRW assisted area, the funding does not apply. Within those areas, funding rates also differ by area category. The location therefore determines not only whether funding is possible, but also how much.

Besides location, sector and the object of investment, the GRW also looks at the regional economic effect of the project. In practice, the company usually has to demonstrate an additional effort.

This can be done in two ways: either the investment creates additional permanent jobs, or the investment volume is well above the average depreciation of previous years. Easier requirements temporarily apply to small and medium-sized enterprises.

The funding rate, too, depends on more than the assisted area and company size. In many cases the maximum funding rates can only be reached if the project is expected to have particular structural effects for the region, for instance through employment, transformation, productivity or sustainable site development.

That is why we check not only whether a location lies within the GRW assisted area, but also whether the project meets the economic requirements and which funding rate can realistically be achieved.

The GRW was revised in 2022. Two changes are particularly relevant for companies.

Supra-regional sales no longer required

Previously, companies generally had to show that they sold their products or services predominantly outside their region. This criterion was dropped with the reform. As a result, regionally active companies can be given more weight if they contribute to value creation and development locally.

Easier conditions for transformation and research

Since the reform, easier funding requirements have applied to projects that contribute to transformation and to research-intensive companies.

With the GRW, the principle applies particularly strictly: the application must be submitted before the project begins. A binding order or commission usually already counts as the start, not only delivery or the start of construction. Anyone who orders first and applies afterwards risks losing the entitlement to funding.

Not every preparatory step already counts as the start of the project. Planning, soil surveys, permit procedures, land acquisition and preliminary feasibility studies generally do not count as the start of the project, provided they are not themselves the subject of the funding. The exact delimitation should nevertheless be checked in advance, because state directives and individual circumstances can differ.

The GRW is state law within a federal framework. Its design differs from state to state, and the assessment depends heavily on the individual case.

Location and eligibility check. We check whether the premises lie within the assisted area, which area category applies and whether the project meets the economic requirements.
Structure of the project. We separate investment components from development components so that each can run through the instrument that suits it.
Preparing the application. We prepare the application in line with the applicable state directive and coordinate it with the approval authority.
Documentation. After approval, we support fund drawdowns, the proof of use and the documentation of the promised effects.

What does a funding advisor do?

A funding advisor is an expert who guides companies through the complex process of applying for public funding and secures the best funding for their projects – from selecting the right programmes through the application to the final report.

At Ignite we work success-driven: we only make you an offer when we are convinced your project is eligible. You are supported comprehensively throughout the process while you concentrate on your core business – we take on the time-consuming part.

Our services as funding advisors

Analysis and identification

Assess company & project
Find the right programmes
Aimed at maximum grants

Strategy development

Tailor-made strategy
Aligned with your goals
Combine programmes

Application and documentation

Complete application drafting
Documents complete & correct
Higher approval chances

Communication with funding bodies

Contact with authorities
Coordination with funding bodies
Representing your interests

Project support and aftercare

Support across the project term
Meeting funding conditions
Disbursement & final report

The advantages of our funding advisory

Time saved

Focus on your core business
The workload sits with us
A faster application

Access to hidden funding opportunities

Lesser-known programmes
Clever combinations
Full funding potential

A higher success rate

Expertise from many applications
Better approval chances
Fewer rejections

Maximising the funding amount

The highest possible funding
Every lever used
More from every project

Legal certainty

All requirements met
Audit-proof evidence
No clawback risk

Numbers you can hold us to

15,000⁺

Funding applications in the last five years

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A team of specialists at your service

Dr. LisaAlbrecht

Consultant

Frequently asked questions about GRW Investitionszuschuss

This can be clarified using the current assisted-area map, which applies for the period 2022 to 2027. What matters is the location of the business premises where the investment is made, not the company’s registered office.

That depends on the assisted-area category, company size and the regional economic effect of the project. In many cases the maximum funding rates can only be reached if the project is expected to have particular structural effects for the region.

As a rule, either additional permanent jobs created by the investment or an investment volume well above the average depreciation of previous years. Easier requirements temporarily apply to small and medium-sized enterprises.

As a rule with a binding order or commission, not only with delivery or the start of construction. Planning, soil surveys, permit procedures, land acquisition and preliminary feasibility studies usually do not count as the start, provided they are not themselves funded. The delimitation should be checked in advance, because the state directives differ.

Yes, a combination can be possible, but not for the same costs. What matters are the state aid limits, the applicable state directive and a clean delimitation of what is being funded.

In practice, it is therefore checked early which costs belong to the GRW and which are better covered by other instruments. Often the task is to split an overall project cleanly into investment components and development components: machinery, plant or business premises may be relevant for the GRW, for example, while technical development, research or software components are assessed under other funding instruments.

It is important to set up this structure before the application is submitted. That way, funding opportunities can be used without risking inadmissible double funding.