Business plan requirements

The business plan of the project is one of the key documents to be submitted by the applicants for funding from the Sustainable Cities Fund. Through it, the applicant motivates the need of realization of the project and justifies the amount of financing through a financial instrument. The main purpose of the financial analysis is to demonstrate that:

  • after implementation of the project, the activities under this project generate sufficient revenue in order to cover the usual costs of the projects and support the payment of the loan;
  • the project does not generate enough revenue in order to be financed by the market - for a shorter period and at higher interest rates.
  • Receiving a loan from a financial instrument will not excessively increase the income from the funded activities of the applicant, it will remain below the normal market for such projects and, accordingly, the loan will not lead to distortions of competition in the sector, giving priority to a specific organization.

Requirements to the content of the business plan

  1. General information
  • Project summary and main activities
  • Market description and the need of this project
  • Short presentation of the candidate.  Implementing team of the project and relevant experience in project implementation.
  • Measures for communication and publicity of the project
  • Horizontal measures
  • Contribution to Indicators of Operational programme „Regions in growth“. Justification of the expected contribution.

2. Financial analysis  

  • Investment costs - eligible for SCF funding, ineligible costs, own contribution of the applicant, indicative amount of necessary Grant (if applicable).
  • Basic assumptions for the analysis
  • Operational costs
  • Operational incomes
  • Financial performance of the project - the following financial aspects of the project are assessed:
    • Net Present Value
    • Internal rate of return
    • Other relevant indicators
  • Financial Sustainability of the Project 

3. Socio-economic analysis

4. Sensitivity analysis and risk assessment - Determination of "critical" variables or project parameters

5. Conclusion