Cash grant for investment projects from the Critical Technology Support Fund – Defense Technologies in Poland

Strengthening industrial sovereignty, security of supply, and the EU’s military potential have become priorities in European economic policy. In response to these challenges, the STEP (Strategic Technologies Platform for Europe) initiative was created, implemented in Poland, among others, under the European Funds for a Modern Economy (FENG) Programme. One of the most important instruments providing direct capital support for the arms sector and dual-use technologies is Measure 05.01: Critical Technology Support Fund – Defense Technologies in Poland.

The Polish Agency for Enterprise Development (PARP) is responsible for organizing the application process. This program provides a boost for companies planning capital-intensive investments in production infrastructure, modern technological lines, and the expansion of the country’s defense capabilities. Due to the large scale of funding and strict selection criteria, a successful application requires a thorough formal and legal analysis, compliance with application rules, and the proper preparation of a financial model. To determine whether your company is eligible to apply for a grant for investment projects in the defense technology sector, schedule a free consultation with a specialist.

What projects are eligible for funding under the Critical Technology Support Fund – Defense Technologies in Poland?

The public support within the Critical Technology Support Fund – Defense Technologies in Poland is strictly thematically and operationally targeted. The instrument focuses exclusively on investment projects that fall within the thematic scope of the defense technology sector. This means that research and development (R&D) is excluded from this mechanism (the National Centre for Research and Development (NCBR) is responsible for this area).

Defense technologies include:

• Technologies embodied in defence-related products referred to in the Annex to Directive 2009/43/EC (corresponding to the Common Military List of the European Union) or technologies required for the development and production of such products, and
• Technologies presented in the priority capability areas identified by the European Council (Council Conclusions on Defence Technologies Relevant to Priority Capability Areas of 6 March 2025), in the Defence Readiness Action Plan 2030 and in the The 2023 EU Capability Development Priorities.

The project must address at least one element of the critical technology (i.e. defense technology) value chain:

• Critical technology end products: defense-related products – if applicable,
• Components: primarily used to produce these end products,
• Machines: used primarily to produce these end products,
• Critical raw materials: listed in Annex II to the Critical Raw Materials Act, excluding coking coal,
• Related services: crucial and specific to the development or production of these end products.

The project must involve the production of critical technologies (i.e., defense technologies). Investments eligible for support include:

• Creating modern production lines,
• First-of-a-kind plants: facilities implementing process technology not previously available in the EU,
• Expansion or change of purpose of existing plants,
• Scaling up processes to meet demand,
• Implementing quality control mechanisms to ensure the production of products of consistently high quality.

What are the conditions for receiving grants for projects under the Critical Technology Support Fund – Defense Technologies in Poland?

The PARP project selection system is two-stage and very rigorous. Failure to meet any of the mandatory criteria means the application will be rejected.

In Stage II of the evaluation, the minimum entry threshold is 11 points obtained by meeting all mandatory criteria, but the maximum pool is 66 points. Entities that meet the optional criteria will have a real chance of receiving funding.

Projects that meet the following requirements will be promoted:

• Documented experience: the applicant has documented experience in deliveries for the Armed Forces over the last 7 years or the implementation of contracts in programs such as SAFE, East Shield or EDIP,
• Permits and approvals: possession of a valid building permit/certificate from the Natura 2000 authorities on the date of submission of the application or proof of no obligation to possess these documents.

Amount of subsidy from the Critical Technology Support Fund – Defense Technologies in Poland

The program is aimed at large, strategic production projects. The financial parameters for the recruitment process are as follows:

• Total recruitment budget: PLN 500,000,000,
• Minimum value of eligible costs: PLN 10,000,000,
• Maximum amount of funding for one enterprise: PLN 140,000,000.

The level of support intensity depends on the size of the enterprise (SME vs. large enterprise), the regional state aid map for a given location and the legal regime applied (e.g. regional investment aid or another category of aid).

Eligible costs – what can be financed?

The list of expenditures financed with a grant from the Critical Technology Support Fund – Defense Technologies in Poland includes primarily capital expenditures within the following categories:

• Real estate: acquisition of ownership of land or perpetual usufruct, acquisition of ownership of developed real estate, excluding residential premises (up to 10% of total eligible investment expenditure).
• Construction works: costs of purchasing construction works and materials for the construction or adaptation of production halls and technical infrastructure facilities.
• Fixed assets: purchase, installation and assembly of technological machines, robotic production cells, production lines, control and measurement equipment and industrial automation systems.
• Intangible assets (INA): acquisition of patents, licenses, know-how and other intellectual property rights, provided that additional conditions are met.

The incentive effect must be maintained – work on the project (with the exception of certain preparatory procedures) cannot begin before the date of submission of the application for funding.

Until when can applications for a grant under the Critical Technology Support Fund – Defense Technologies in Poland be submitted?

The recruitment schedule sets the timeframe:

• Application call opens: November 2026
• Application deadline: January 2027

Given the complexity of preparing the documentation, investors have little time. Developing a financial model to verify profitability indicators (NPV, IRR), obtaining any necessary construction permits, and conducting market research on the price of machinery and other planned expenses requires several months of advance notice.

Invest in your future – take advantage of the grant today!

Grants for projects from the Critical Technology Support Fund – Defense Technologies in Poland are a significant form of support for companies that want to actively participate in modernizing the technological and industrial base of the defense sector in Poland. The conditions for granting aid may seem straightforward, but investors may encounter numerous uncertainties during the grant application and subsequent settlement process. Therefore, the application process requires careful preparation, which I can assist with. Given the limited duration of the program, potential beneficiaries should familiarize themselves with the detailed requirements and begin preparing their applications as soon as possible.

FAQ – Frequently Asked Questions

1. Can small and medium-sized enterprises (SMEs) apply for funding under this program?

Yes. Both SMEs and large enterprises can apply for funding, provided they meet the formal requirements, including a minimum eligible cost of PLN 10m.

2. Does a newly established special purpose vehicle (SPV) have the right to submit an application?

Yes, the Critical Technology Support Fund – Defence Technologies in Poland allows the start-up of special purpose vehicles that do not have a 36-month history and 3 closed financial years, provided that the above requirement is met by its parent company (parent company), which must have its registered office in the European Union.

3. Can the grant be used to finance industrial research and development work (R&D)?

No. The Critical Technology Support Fund – Defense Technologies in Poland focuses exclusively on investments in the production of critical technologies (infrastructure, production lines). The R&D segment on critical technologies is supported by the National Centre for Research and Development (NCBR).

4. What does it mean that technology must fit into the STEP Platform?

The project must cover defence technologies identified in Regulation (EU) 2024/795 (STEP) and related policy documents (EU Common Military List, European Council conclusions, EDA priorities).

5. Is having a valid building permit a necessary condition for submitting an application?

This is not an absolute formal condition in the first stage, but in the second stage of the evaluation it allows you to obtain 1 additional point in the applicant’s potential criterion, which may determine the position on the ranking list.

6. What is the preference for companies cooperating with the military?

Entrepreneurs who have completed at least one documented delivery of defense technologies for the Polish Armed Forces or other countries in the last 7 financial years, or are implementing contracts under the SAFE, East Shield or EDIP programs, receive as many as 5 additional ranking points during the assessment.

7. How is the profitability of a planned investment verified in the Critical Technology Support Fund – Defense Technologies program?

The applicant is required to submit a detailed Financial Model. Verification includes forecasts of revenues and operating costs, as well as positive profitability indicators such as discounted net present value (NPV) and internal rate of return (IRR).

8. Is the purchase of production management software an eligible cost?

Yes, the purchase of intangible assets, including specialized technological software (MES, SCADA) and systems supporting production automation, may be an eligible expense.

9. When is the earliest you can sign contracts with contractors or order machinery?

Binding investment commitments can only be made after submitting an application for funding to PARP.

Last updated: September 16, 2026

The article was prepared by Grzegorz Kokoszkiewicz – licensed tax advisor (entry no. 11907).

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