Financial assistance - Supporting business creation and development projects by CimArk

Contents.

1. Introduction

2. Support for innovation

2.1 Co-funding for specific certification 2.2 Co-funding of internal R&D projects 2.3 Guarantees for bank loans and funding providers 2.4. Co-funding for research 2.4.1 Eurostars 2.4.2 Horizon 2020 3. Support for commercial development and internationalisation

4 5 6 7 8 8 9

3.1 Co-funding for consultancy 3.2 Co-funding of attendance at specialised fairs 3.3 Co-funding of commercial initiatives 4. Support for investment

9 10 11 12

4.1 Security bond for bank loans or leasing agreements 4.2 Coverage of interest payments 4.3 Seed funding 4.4 Investment fund 5. Support for staff training and recruitment

12 13 14 15 16

5.1 Staff training costs in relation to certification 5.2 Staff recruitment 5.3 Labour market measures 6. Business Valais' services

16 16 16 17

7. Useful links

Impressum Texts Business Valais Graphic design Forme Cover Valais/Wallis Promotion, Pascal Gertschen ÂŠ 2019 Business Valais

1. Introduction.

he Canton of Valais mainly achieves economic growth through small and medium-sized enterprises (SMEs), which is why it is important to ensure that they develop well through appropriate support. Thanks to its innovative ecosystem, Valais now offers more fertile ground than ever for the entrepreneurial spirit and business creativity. Promoting this entrepreneurship in our canton is therefore essential. Business Valais’ support for these companies can take various forms, including financial assistance The purpose of this brochure is to inform entrepreneurs, project sponsors and investors about the various forms of financial assistance available to support profit-making entrepreneurial initiatives in the Canton of Valais. The aim of the Cantonal Economic Policy Act (LPolEco) to support Valais’ economic development is to strengthen the canton’s economic fabric and competitiveness. One of its primary objectives – particularly in sectors that offer high added

value – is to encourage job retention and creation, encourage innovation and help businesses to make structural changes. The financial assistance services available through Business Valais are provided by the Centre de cautionnement et de financement (CCF Ltd.). The aid is aimed at businesses that meet the criteria defined in the LPolEco, i.e. innovative businesses targeting a market that is mainly outside the canton, or businesses that create and maintain sustainable jobs. The financial assistance offered by Business Valais can be in the form of guarantees, loans, non-repayable grants or covering interest payments. Projects fully meeting the requirements planned receive this assistance. Access to funding varies according to the business sector, the project’s degree of technological innovation and its stage of development. Other types of financial assistance are available at the national level and through the European Union, which help businesses and start-ups to secure loans. These schemes are also described in this brochure.

2. Support for innovation. 2.1 Co-funding for specific certification. Aim

Special conditions

Co-funding for specific certification is designed to support the efforts of SMEs seeking a particular certification for their products, services or processes, to give them access to new markets. Accordingly, Business Valais finances a portion of the costs of certification, based on the criteria set out below (see Special conditions). Business Valais will fund up to 50% of the cost of certification, up to a maximum of CHF 50,000. Support is discretionary, however, and Business Valais reserves the right to reduce the amount, particularly on the basis of the relevance of the proposed project, the actual impact of the company’s activities on the cantonal economy and any assistance granted in the past.

Payment of the amount granted will be made on submission of paid invoices and after Business Valais has produced its final report. Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

Co-funded certifications must be specific and linked to a clearly defined project. Standard certification programmes such as ISO 9001 or ISO 14001 are therefore excluded. The following costs are eligible for co-funding: • costs billed by the certification organisation, • production costs for prototypes supplied to the certification organisation, • costs of setting up field tests, • staff training costs linked to the certification programme, • external consultancy costs in relation to a specific certification programme. Amount The overall cost of certification is used as the basis for calculating the amount granted. The calculation is as follows: Overall cost of certification ./. Own funding ./. Other contributions or state subsidies = Cost of certification

2.2 Co-funding of internal R&D projects. Aim

Special conditions

Co-funding of internal development projects is designed to help SMEs implement successful R&D projects by assigning qualified personnel to them when they cannot be employed in production because of a drop in orders. This allows the business receiving funding to retain high added-value jobs during challenging economic periods, by assigning the staff concerned to projects aimed at improving its productivity.

Projects likely to be eligible for co-funding of this kind must lead to an improvement in the business’s productivity or create added value. They may cover areas such as: • development of a new product, prototype or market, • product industrialisation,

It is intended to supplement temporary layoff measures and offers the advantage of allowing the business receiving funding to keep the staff concerned occupied in the business. Payment of the amount granted will be made on submission of paid

invoices and after Business Valais has produced its final report. Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

• optimisation of the production process, • restructuring measures. Bookkeeping, certification and staff training-related tasks are excluded. Projects in other areas may, however, be submitted. Only the net salary of the staff assigned to the project under consideration is included in the calculation for the amount of co-funding. Neither employee nor employer social-security contributions are taken into account. Amount The amount of co-funding available through Business Valais is a maximum of 15% of the wage bill for the previous financial year, up to a maximum of CHF 50,000.

2.3 Guarantees for bank loans and funding providers. Aim

Amount

The Technology Fund can be used to obtain loan guarantees for businesses developing innovative products designed to bring about a sustainable reduction in greenhouse gas emissions.

The maximum loan amount that can be guaranteed is CHF 3,000,000. It is possible to guarantee both the loan and interest due. The maximum term is 10 years.

Target groups

Technologies in the areas of reducing greenhouse gas emissions, efficient use of electrical energy, encouraging the use of renewable energy sources and protecting natural resources are viewed as worthy of encouragement. Businesses whose applications are successful are involved in marketing a product

ÂŠ Valais/Wallis Promotion, Frederic Huber

or process that has a good chance of gaining a foothold in the market. In addition, the business must offer a guarantee of solvency and have a registered office in Switzerland. The projects supported should, in general terms, be at least 40% funded from a range of sources.

2.4. Co-funding for research. Aim

Innovation areas

Innosuisse co-funds innovation projects run jointly by businesses, private or public-sector organisations and research institutions.

Innosuisse encourages projects in all areas of research-based innovation. Applications are categorised into five main themes. Interdisciplinary projects are also eligible.

Research can also be funded by the Swiss Confederation and the European Union. Although Switzerland is not a European Member State, SMEs based in Switzerland can access Euro-

pean funding. European programmes are also open for collaboration with partners based in Canada, South Africa, Chile and South Korea.

• Energy & Environment • Engineering • ICT • Life Sciences • Social Sciences & Business Management

2.4.1 Eurostars.

Aim

Special conditions

The Eurostars programme is aimed at SMEs investing more than 10% of their turnover in research and development.

The following funding rates apply to Swiss project partners: • SME: 50% • Large businesses: 25%

This gives SMEs the opportunity to cooperate with European research teams and increase their competitiveness in the fields of knowledge and innovation.

• Research centres: 50% Amount Switzerland supports projects by up to € 500,000 per project if a Swiss SME is involved. A maximum of € 250,000 is available for projects not involving Swiss SMEs.

2.4.2 Horizon 2020.

Aim

Amount

The Horizon 2020 programme promotes innovative research ideas and transforming them into marketable products and services, to produce a positive impact on competitiveness, employment and prosperity in Europe.

Horizon 2020 is the largest EU research and innovation programme to date, with almost €80 billion in funding available over seven years (2014-2020).

Domaines

Horizon 2020 covers almost the whole of the value-creation chain, from fundamental to applied research and technological development. The programme is driven by three overarching priorities:

• Scientific excellence • Industrial leadership • Societal challenges

3. Support for commercial development and internationalisation. 3.1 Co-funding for consultancy. Aim

Special conditions

Co-funding for consultancy is designed to allow SMEs to carry out research prior to committing to an investment. Accordingly, Business Valais finances a portion of the cost of appointing an external consultant to carry out a piece of work, based on the criteria set out below (see Special conditions).

Expert consultancy assignments may cover areas such as:

Business Valais will fund up to 50% of the cost of the assignment, up to a maximum of CHF 50,000. Support is discretionary, however, and Business Valais reserves the right to reduce the amount, particularly on the basis of the relevance of the proposed project, the actual impact of the company’s activities on the cantonal economy and any assistance granted in the past.

Payment of the amount granted will be made on submission of paid invoices and the consultant’s report, and after Business Valais has produced its final report. Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

• market research or feasibility studies, • restructuring / streamlining, • product positioning and segmentation, • product industrialisation, • optimisation of the production process, • intellectual property procedures, • tax, legal and financial advice when transferring/passing on a business. Bookkeeping, financial planning/ developing dashboards, certification and staff training-related assignments are excluded. Amount The consultant’s fees for the work are used as the basis for calculating the amount granted. The calculation is as follows: Total fees ./. Own funding ./. Other contributions or state subsidies = Cost of assignment

3.2 Co-funding of attendance at specialised fairs. Aim

Special conditions

The purpose of co-funding attendance at trade fairs is to support the commercial efforts of SMEs taking part in trade and/or technology fairs. Accordingly, Business Valais finances a portion of the costs of attending such events, based on the criteria set out below (see Special conditions).

The following costs are eligible for co-funding:

Support is discretionary, however, and Business Valais reserves the right to reduce the amount, particularly on the basis of the relevance of the proposed project, the actual impact of the company’s activities on the cantonal economy and any assistance granted in the past. Payment of the amount granted will be made on submission of paid invoices and after Business Valais has produced its final report. The amounts allocated to co-funding attendance at trade

fairs are reserved, as a priority, for market diversification projects. This funding is intended to act as an incentive and is therefore granted on an ad hoc basis. A maximum of three lots of co-funding of attendance at trade fairs can be granted to one business. Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

• registration fees, • costs of stand hire and rental of exhibition equipment, • transport costs for equipment, • staff travel costs, based on the standard rates applicable, • accommodation and subsistence costs, • costs of advertising and promotional items purchased for a specialist trade fair. Amount Business Valais will fund up to 50% of the costs eligible for co-funding, up to a maximum of CHF 20,000.

3.3 Co-funding of commercial initiatives. Aim

Special conditions

The purpose of co-funding commercial initiatives is to help SMEs in the Canton of Valais launch new products and services in new markets or support business diversification by marketing new products and services (for example, extending their network of sales representatives or setting up a new sales outlet or channel).

The following costs, in particular, are eligible for co-funding:

Support is discretionary, however, and Business Valais reserves the right to reduce the amount, particularly on the basis of the relevance of the proposed project, the actual impact of the company’s activities on the cantonal economy and any support granted in the past. Payment of the amount granted will be made on submission of paid invoices and after Business Valais has produced its final report.

Co-funding is only available for costs incurred specifically for the commercial initiatives concerned, excluding costs relating to the existing structure or normal sales procedures that are already in place.

• staff costs (salaries, provisions and social-security contributions), • premises costs (rent and other charges), • installation costs and specific promotional materials. Amount Business Valais will fund up to 50% of the costs eligible for co-funding, up to a maximum of CHF 50,000.

Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

4. Support for investment. 4.1 Security bond for bank loans or leasing agreements. Aim

Special conditions

The purpose of the security bonds is to encourage an SME’s investment funding.

The bond cannot cover the whole of a bank loan or leasing agreement – financial partners must assume a share of the risk the bond does not cover, if necessary based on other collateral.

Start-ups and businesses whose share capital is more than 50% either funded by local authorities,

or directly or indirectly, are not eligible for this type of funding.

Collateral required

Collateral in the form of a back-guarantee for 50% of the loan guaranteed generally accompanies the cantonal bond. • pure risk insurance, • a mortgage, • pledges or assignment of securities.

Amount Bonds are available for a minimum loan of CHF 125,000 and a maximum of CHF 2,000,000. The amount of the bond is equal to the loan guaranteed plus, in principle, a reserve of 20%.

4.2 Coverage of interest payments. Aim

Special conditions

Coverage of interest payments (PECI) is a subsidy aimed at reducing the business’s financial burden and thus improving its cash flow.

Property speculation is excluded from this type of funding.

Interest payments coverage is possible for a maximum of three years.

Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

The scheme is aimed at growing or mature businesses; start-ups are generally excluded. PECI can also be granted for the purpose of streamlining, restructuring or handing down a business to the next generation. Amount It is calculated based either on the amount of the loan guaranteed by a security bond, or the amount of the investment excluding the business’s own funds, if there is no security bond. It is capped at CHF 500,000. The interest rate applied is a maximum of 2%, up to CHF 10,000 per year.

4.3 Seed funding. Aim

Special conditions

Seed funding contributes to getting a new project off the ground in an SME.

In principle, the following conditions must be met to quality for seed funding:

Businesses whose share capital is more than 50% funded by local authorities, either directly or indirectly, are not eligible for this type of funding.

This funding is only available to companies whose registered office is in Valais and which are likely to create jobs in the canton.

Structural requirements

Funding is only available for businesses that satisfy all of the following conditions: • recently formed or about to be formed as a legal entity, • the directors own part of the capital, • willingness to provide the necessary information to produce a fair assessment of the state of the company’s business.

• innovation, • strong, recognised skills within the team, • market launch within the next 12 months, • actual job creation in Valais, • liquidity requirements covered for the next few months. Amount The amount granted is capped at CHF 50,000 per project. This can be increased to a maximum of CHF 100,000 as part of a subsequent funding round.

4.4 Investment fund. Aim

Special conditions

The aim of the investment fund is to strengthen the economic fabric of the Canton of Valais.

The following basic criteria are decisive for selecting projects: • approval of business plan,

Businesses whose share capital is more than 50% funded by local authorities, either directly

or indirectly, are not eligible for this type of funding.

Structural requirements

Funding is only available for businesses that satisfy all of the following conditions: • formed as a legal entity, • the directors own part of the capital, • willingness to provide the necessary information to produce a fair assessment of the state of the company’s business.

• approval of management, • submission of information based on checklist of financial services, • acceptance of mutually agreed exit terms or conditions. Amount The investment fund mainly takes the form of loans that can be subordinated, with a minimum amount of CHF 100,000 and a maximum of CHF 500,000.

5. Support for staff training and recruitment. 5.1 Staff training costs in relation to certification. Business Valais will fund up to 50% of the cost of certification, up to a maximum of CHF 50,000.

5.2 Staff recruitment. Business Valais can provide support for staff recruitment and help businesses to find qualified personnel who meet their requirements. Businesses in the canton have access to a free web platform, which puts them in touch with

young, highly qualified graduates from higher-education institutions (universities, EPF, HES, colleges, ES, etc.). Over 600 businesses and 5,100 graduates are members of the network.

Aims • free publication of job vacancies and internships for highly qualified individuals, • access to a CV library, • increased visibility for a targeted audience.

5.3 Labour market measures. Unemployment insurance can fund measures to help jobseekers get back into work. These are federal labour market measures.

The Canton of Valais also funds measures designed to support people reaching the end of their entitlement to benefits, with the aim of encouraging them back into work.

Purpose of the measure • improve knowledge, • improve professional, personal or social skills, • speed up the return to work.

6. Business Valais' services.

usiness Valais, led by its board of directors under the chairmanship of the Department of the Economy and Training, Christophe Darbellay, brings all the key players involved in economic development in the Canton of Valais together in a single body. A single representative means swift support and an efficient response to the various requests made by project backers.

Business Valais supports businesses and business owners by offering its partners a wide range of customised, professional services in terms of business support, coaching, raising funds, technology transfer, training, networking and numerous other services.

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7. Useful links.

Business Valais CCF Valais Technology fund Innosuisse Horizon 2020 Eurostars Labour market measures VS link

ÂŠ Valais/Wallis Promotion, Christian Pfammater

Business Valais supporting entrepreneurship.

Your partner Business Valais Maison de Courten Place St. ThĂŠodule | 1950 Sion Switzerland +41 27 606 73 90 (f) +41 27 606 73 91 (d) info@business-valais.ch business-valais.ch

Business Valais Business Valais @businessvalais