In brief

• Awarding an EU grant does not mean the money is immediately transferred to the company's account.
• The company may first pay the expenses itself, and receives reimbursement only after the settlement is accepted.
• Not all project costs are covered by the support, and delays may postpone the payment.

Expenses must first be financed from own funds

In practice, a subsidy often works like a refund of incurred costs. The company pays suppliers and contractors, and the support comes back only after the settlement has been submitted and accepted. A million złoty awarded is therefore not the same as a million złoty available in the account on the day the agreement is signed (Dotacja z UE to nie od razu pieniądze na koncie. O czym przedsiębiorca musi wiedzieć, zanim ruszy z projektem – Infor.pl).

Costs outside the support and the risk of delays

Not every project expense has to be covered by the grant. The entrepreneur should check which budget items are eligible and which must be paid entirely from the company's own funds. There is also a risk of delays in implementing the investment, which may postpone the payment date and strain the company's liquidity.

Settlement obligations

The grant comes with obligations: collecting documents, reporting on progress, and preparing refund applications. Neglect may lengthen the process or lead to a reduction of the support amount.

What this means for the company

Before starting the project, it is worth estimating how long the company can finance expenses without support, whether it has a cash reserve or access to a bridge loan, and which costs are not eligible. The success of the investment depends not only on the size of the grant, but also on whether the entrepreneur takes the entire financing and settlement cycle into account.