Direct loans: general features and possible beneficiaries
When we hear about direct financing, we find ourselves in the field of EU funding, which by their nature, and depending on the distribution channels, can be distinguished precisely between direct financing and indirect financing. On the other hand, the recipient of the loans themselves is not valid, due to their distinction, as both types of community loans can provide for their granting to both private individuals and public bodies or administrations.
What are the EU direct funding?
This category includes the funds that the EU provides directly. It is therefore the most modest portion of the sum allocated by the European community. There are six categories that, specifically, can benefit from direct funding: farmers, funding for young entrepreneurs, research, support for civil society NGOs, small and medium-sized enterprises, and public bodies. At the same time, the same categories also succeed in obtaining participation in indirect financing, through the calls for tenders issued by the regions to which they belong.
How are EU direct funding allocated?
As for indirect financing, only those who meet the minimum requirements (maximum admissible expenses, minimum expenditure, type of project, category, etc.) can be assigned.
Generally the assignment does not exploit the classic call for bids with points, but all the questions that meet the requirements are satisfied, depending on the order of presentation, and logically until the allocation is exhausted. In the rare cases in which the allocation of funds with a call for tenders takes place, these are usually very high amounts, necessary to finance real tenders.
Direct or indirect financing?
In both cases, these are normally sums disbursed. However, in the case of indirect funding, it is up to the region to establish the amounts to be allocated to the various calls for tenders, for each year. However, to avoid waste, the EU has established a criterion according to which, if the financed region does not prove itself “virtuous”, the European funds to be allocated for subsequent periods are reduced. In order for a Region to prove itself virtuous it is necessary that it exhausts, within the term established in the programmatic period, the entire ceiling of appropriations that the EU has assigned to it.