Automation of production processes, i.e. FENG financing

Key information:

• Support from the FENG program is intended for the SME sector, consortia, research organizations, business environment institutions, and startups.
• The FENG program budget is PLN 7.9 billion.
• Forms of support include grants, repayable financing instruments, and more.
  and subsidy as well as capital and guarantee financial instruments.
• The program is implemented within the framework of four priorities: support for enterprises, an innovation-friendly environment, greening of enterprises, and STEP (Strategic Technologies for Europe Platform) projects.
• The main support instrument is the SMART Pathway.
• Within the program, funding is possible for activities in the following areas: research and development (R&D) work, innovation implementation, R&D infrastructure, digitalization, automation, robotization, company greening, internationalization, and competence development.
• Depending on the size of the company and the type of business, the subsidy may range from 40% to 100% of the investment value.

Details below!

Companies that invest in modern production technologies today set the standards for the entire industry tomorrow. Faster production lines and lower operating costs allow for building competitive advantage, which can be strengthened today with the support of the program European Funds for a Modern Economy (FENG). As one
from the largest EU programs implemented in the perspective 2021-2027, is directed straight to SME sector. It includes a variety of financial instruments: from grants to preferential loans and guarantee instruments, tailored to different stages of company development and the scale of planned investments.

Who is eligible for FENG funding?

From the FENG program funds can benefit not only businesses. Support is also aimed at the science sector, consortia (including entrepreneurs cooperating with research organizations), non-governmental organizations, and business environment institutions, including entrepreneurship centers, innovation centers, and startups.

The program's budget is EUR 7.9 billion. and includes activities aimed at supporting research, competitiveness, and innovations in the Polish economy, implemented through the following instruments:

• grants,
• instruments combining repayable and grant funding,
• financial instruments,
• capital and guarantee instruments.

What is the purpose of the program?

The program has identified four priority areas:

1. Business Support financial support granted to a company can be used for a wide range of purposes: from research and development (R&D) work, through internationalization and skills development, to digitalization or the implementation of green solutions.
2. Innovation-friendly environment – activities aimed at strengthening cooperation between Polish universities and business. Support goes to accelerators, clusters, research institutions, startups, and public laboratories.

III. Greening of Businesses – priority related to the implementation of the European Green Deal, whose main goals include climate neutrality, the green transformation of the economy and sustainability. These goals are served, among others, by the green guarantee fund, the ecological credit, and IPCEI projects.

1. Support for projects implementing the STEP initiative objectives – support focuses on the development and production of critical technologies within the EU's STEP platform. The funding covers three pillars: digital technologies, clean technologies
   and resource-efficient as well as biotechnologies.

What fund is allocated for financing production automation?

The main instrument within FENG is SMART Pathway, which implements the program's first priority: support for businesses. Starting in 2026, formal matters related to SMART Pathway funding will be simplified by dividing them into two areas: R&D work and the implementation of R&D work for SMEs. For large companies, the R&D module will always remain mandatory.

The SMART pathway allows for the financing of:

• B+R - full scope of funding for research, testing, and prototyping,
• innovation implementation – purchase of real estate and equipping of the production line,
• R&D infrastructure – creation of new laboratories and testing halls, as well as modernization of existing ones,
• digitization – implementation of IT tools, automation, and robotics,
• greening of the enterprise – improving energy efficiency and implementing pro-environmental solutions,
• internationalization – activities related to the company's international expansion,
• competency development – upgrading the team's qualifications through training programs.

Entrepreneurs seeking repayable financing can take advantage of the „Loans for Green and" program. digital transformation for businesses,” which combines attractive financing conditions with the opportunity for partial debt forgiveness.

Within the program, loans are available in amounts from 2.5 million PLN to 15 million PLN, granted for a period of 15 years at a preferential interest rate of 0.5% per year. Meeting specific requirements for the implementation of circular economy principles (CE), the execution of a digitalization component, or the localization of an investment supporting the local economy opens the door to cancellation even 15% loan principal.

Increase your chances of approval and consult your project with an expert

Whether you are planning to implement robotics, modernize a production line, or digitize internal processes, within the SMART Path or through preferential loans, you will find a financial instrument tailored to the scale and stage of your company's development. Funding of up to 80% eligible costs (depending on the module, type of expense, and company size) means that the financial risk on your side is minimal, and the growth potential is significant.

The key to success is proper project preparation. Precisely defining goals, correctly constructing a budget, and meeting formal requirements are elements that decisively determine whether funding will be granted. Therefore, it's worth acting in advance and utilizing experienced advisory support.

Contact us and learn how we can help you develop the documentation and business plan that will convince a financial institution to back your project.