Programme Overview
GRW (Gemeinschaftsaufgabe Verbesserung der regionalen Wirtschaftsstruktur) is Germany's major regional economic development co-financing programme, jointly funded by federal and state governments. It provides investment grants to companies establishing or expanding facilities in structurally disadvantaged regions (primarily eastern Germany and specific western German areas).
Who Can Apply?
Companies of all sizes making qualifying investments in GRW-eligible regions. SMEs receive higher subsidy rates. Manufacturing, tourism, R&D centres, and headquarters functions qualify.
What Does It Fund?
Capital investments (new facilities, expansions, modernisation) or job creation in structurally disadvantaged GRW-eligible regions.
Funding Amount & Rates
Up to 30–40% investment subsidy for eligible capital expenditure (land, buildings, equipment) or wage costs. Maximum awards can reach several million euros for large investments.
Deadlines & Timeline
Application deadline: Rolling — applications accepted continuously. Must apply BEFORE starting the investment (prior approval mandatory).
Processing time: 4–8 weeks for initial approval (Vorantrag). Full grant payment after investment completion.
Pros & Cons
Advantages
- High subsidy rates — up to 40% of investment costs
- Covers large capital expenditures (buildings, machinery)
- Prior approval process is relatively fast (4–8 weeks)
- Can be combined with EU Structural Funds (ERDF) in some regions
Limitations
- Geographic restriction to GRW-eligible regions
- Must apply before starting investment — no retroactive applications
- Job creation commitments required (typically 5–10 years)
- Repayment risk if jobs not maintained