Updated 8 October 2026: The elinvoimakeskus centres’ spring 2026 research and development call has closed. We have updated the article.
Public business funding is an important tool for supporting companies and promoting their growth and innovation. It gives companies the financial support they need to develop their operations. Public sector funding offers a range of opportunities for different industries and companies.
Public business funding is an important means of supporting company growth, renewal and investment. It provides companies with funding for business development, research and development, and projects that support internationalisation. Public business funding includes, among other things, state business grants offered by organisations such as Business Finland and the elinvoimakeskus (regional development centres). Public funding also covers state-backed loans and guarantees as well as European Union funding programmes.
In this blog post, we present ten important facts about public business funding.
1. The purpose of public business funding
Business grants help when a company needs funding for things such as implementing innovations, developing its business, making investments or running pilots. The aim of the funding is to help companies develop new products and services, renew their business and strengthen growth and internationalisation. Public funding can also promote employment and economic growth.
2. Sources of public funding
Public business funding is offered by several different organisations, and there are dedicated forms of funding for different purposes. The most typical are the funding solutions of the elinvoimakeskus centres, Business Finland and Finnvera. Funding can take the form of a grant, a loan or a guarantee. A grant is generally not repaid, whereas loans and guarantees are part of the company’s repayable funding package.
3. Funding instruments
The choice of funding instrument depends on the nature of the project, the company’s situation and the terms of the funding. Business Finland offers companies funding services for areas such as research and development projects, international growth and the development of a new innovation. In 2026, Business Finland’s current forms of funding include Sprint funding for small companies that have a new innovation and the potential for rapid international growth.
The elinvoimakeskus centres’ business development grant, in turn, can support SMEs’ development and investment projects. The elinvoimakeskus centres also offer business funding targeted at rural areas, and they have run national research and development calls for micro-enterprises and SMEs. The spring 2026 call closed on 24 April 2026.
4. Who the funding is for
Public business funding is often aimed especially at small and medium-sized enterprises that need financial support to develop their operations. Funding can be applied for in various industries. Depending on the funding instrument, eligibility may require the company to meet certain criteria, for example regarding company size, project content, growth targets or creditworthiness.
5. The application process
Application processes for public business funding vary by type of funding. An application must be prepared for every grant, and its scope and content depend on the funding being applied for. The application usually explains what project the support is sought for and what the project’s objectives are. The application may also ask for information on matters such as the project’s budget, schedule and impact. It is important to study the terms and timetables of the funding programme carefully and to complete the application thoroughly and accurately.
6. Competition
Many companies compete for the same sources of funding, so securing public funding can be a competitive process. That is why it is important to present the project’s novelty, impact and business potential precisely in the application. A high-quality application that clearly addresses the objectives of the funding improves the chances of being funded.
7. EU funding programmes
One form of public support is funding provided by the European Union. EU programmes can grant funding for various development, investment and innovation activities. For Finnish SMEs, a key route is often regional EU co-funded business funding, granted for example through the elinvoimakeskus centres. Some companies may also be able to use direct EU programmes, depending on the nature of their projects.
8. The share of grants in projects
When applying for a public grant, it is worth bearing in mind that the grant usually covers only part of the project’s total costs. The company is normally also expected to provide its own funding contribution or other complementary funding. The grant level, eligible costs and funding terms vary by type of funding, project and region, so they must always be checked in the terms of the call in question. In Sprint funding, the Business Finland grant covers 75 per cent of approved costs, while in the elinvoimakeskus centres’ development grants the funding level is determined by regional policies and the content of the project.
9. The funding path
Applying for public funding is often not limited to a single instrument. Funding for developing a company’s business or innovation can be sought from several sources for different stages of the work. This is known as a funding path. Where possible, it is worth planning the funding path before applying for the first grant.
10. Funding challenges
Applying for public business funding can be time-consuming and require resources. Competition for funding sources can be tough, and funding instruments may include strict conditions. That is why it is important to carry out the application process carefully and to use expert help where needed. Funding programmes and their terms may also change over time, so it is always worth checking for up-to-date information before submitting an application.
What are your company’s funding needs?
Public business funding is an important resource for supporting company growth and development. It allows companies to obtain the financial support they need for development projects, investments and renewal. Careful preparation, a high-quality application and clear objectives improve the chances of securing funding.
If you would like to find out which funding solution would be the right option for your company, contact us and let’s discuss your company’s needs.
