It is not easy for the winners of the Food Industry Supplier Development Program

By: Trademagazin Date: 2024. 02. 02. 11:50

The Food Supplier Development Program (ÉLIP BP) gave new impetus to the development of the domestic food industry sector. With the sudden increase in the tender amount from HUF 6 to HUF 33 billion, as well as with the possibility of intensity of support, businesses had an excellent opportunity for development. However, the 60-day bank guarantee requirement can be a serious challenge for some businesses.

The program was approved in 2016 as part of the Irinyi Planning Framework, which aimed at industrial development, with particular emphasis on the increase of domestic industry in proportion to GDP. ÉLIP BP targets sectors with a lack of capital, highlighting those enterprises that make a significant contribution to the expansion of the sector.

The expectations are high: the applicant must submit his documentation in order both in terms of form and content. However, one special condition stands out: the beneficiary must provide a bank guarantee within 60 days of accepting the grant. This condition, which enables the disbursement of the subsidy amount, can, however, be a serious obstacle for many businesses.