Álava launches Grants to Support New and Expanding Businesses (Spain)

The BIC Araba Business Creation and Expansion Grant supports entrepreneurs and companies looking to start, consolidate, or expand businesses in Álava, Spain. The program offers grants of up to €80,000 for new businesses and up to €20,000 for expansion projects, helping modernize the regional economy and strengthen business competitiveness.

The BIC Araba Grant Program provides financial support to entrepreneurs and companies aiming to create new business units, consolidate early-stage ventures, or expand existing operations within the territory of Álava. The initiative focuses on innovation, diversification, and long-term economic sustainability.

Program Objectives and Strategic Focus

The program is designed to:

• Promote entrepreneurship and business creation in Álava

• Support early-stage business consolidation

• Encourage business expansion and diversification

• Improve competitiveness and productivity of local companies

• Modernize the regional production ecosystem

By reducing financial barriers, BIC Araba enables businesses to move from idea to execution and from stability to growth.

Who Is Eligible?

Eligible beneficiaries include a broad range of entrepreneurs and companies connected to Álava.

Eligible Applicants

• Individuals from Álava creating a new business unit

• Natural or legal persons with businesses less than two years old

• Existing legal entities diversifying through new business units

• Individuals or companies relocating to Álava or opening a center of activity there

Applicants may be newly established or already operating, provided their project contributes to economic activity in Álava.

Grant Amounts and Funding Limits

Funding varies depending on the project type.

Maximum Grant Amounts

• New businesses: up to €80,000

• Consolidation or expansion projects: up to €20,000

• Staff hiring support: up to €10,000 within the €20,000 cap

Grants are awarded based on project scope, impact, and eligible expenses.

Eligible Expenses for New Businesses

Funding for new businesses may cover:

• Market research and feasibility studies

• Technical and business advisory services

• Prototype design and development (up to €20,000)

• Patents, trademarks, certifications, and approvals (up to €10,000)

• Business-related training not part of regulated education, up to 350 hours (€3,000 max)

• Communication and marketing activities (up to €20,000)

• Fixed asset investments excluding land, buildings, and vehicles

• Rental costs for business premises in Álava (up to €10,000 per year)

Eligible Expenses for Consolidation or Expansion

Funding for existing businesses may support:

• External consulting, legal, and technical advisory services

• Technical and market studies

• Communication and marketing actions (up to €20,000)

• Management and improvement training under 350 hours

• Fixed assets that improve productivity and competitiveness

• Hiring technology specialists or business development professionals

How the Program Works

Step-by-Step Process

1. Define whether your project is new creation, consolidation, or expansion

2. Prepare a detailed business proposal and budget

3. Identify eligible expenses aligned with program rules

4. Submit the grant application to BIC Araba

5. Undergo evaluation based on impact, feasibility, and alignment with regional priorities

6. Receive funding and implement the approved project

Why This Program Matters

The BIC Araba Grant Program:

• Strengthens Álava’s entrepreneurial ecosystem

• Encourages innovation and diversification

• Supports job creation and talent attraction

• Helps businesses scale sustainably

• Enhances regional competitiveness

It plays a key role in building a resilient local economy.

Common Mistakes to Avoid

• Applying for expenses outside the eligible cost categories

• Exceeding funding caps for specific expense types

• Submitting incomplete financial documentation

• Proposing projects without a clear link to Álava

• Underestimating training or staffing requirements

Frequently Asked Questions

Can companies outside Álava apply?
Yes, if they are relocating or establishing an activity center in Álava.

What is the maximum grant for a startup?
New businesses can receive up to €80,000.

Are salaries eligible costs?
Yes, staff hiring is eligible up to €10,000 for expansion projects.

Can marketing expenses be funded?
Yes, communication and marketing costs are eligible up to €20,000.

Are vehicles or buildings eligible expenses?
No, land, buildings, and vehicles are excluded.

Is training eligible?
Yes, non-regulated training directly linked to business activity is eligible up to 350 hours.

Can very early-stage businesses apply?
Yes, including newly created businesses and those under two years old.

Conclusion

The BIC Araba Business Grant Program offers a powerful funding opportunity for entrepreneurs and companies looking to establish, strengthen, or expand operations in Álava. With generous funding caps and broad eligibility, the program supports innovation, competitiveness, and sustainable economic growth across the region.