FAQ

(Frequently Asked Questions)

1. What is an “inclusive business” and what are the benefits of being one?

An inclusive business is a profitable business that helps people with low incomes by including them in its everyday operations. This can mean buying supplies or services from them, selling affordable products to them, hiring them as workers, or partnering with them to sell products in their communities.

For example, a coffee company might train farmers to grow better beans, then buy directly from them at fair prices. Everyone wins: the business grows, poor communities earn more money, and the environment stays healthy.

Inclusive businesses create value for everyone involved — the company, low-income communities, and the environment. These businesses often find new markets and loyal customers while attracting investors looking for a mix of financial and social returns.

2. Who can apply for IAP funding?

You are eligible to apply if:

Work in our focus areas (see question 4)
You work in Bangladesh, Ethiopia, Uganda, or Zambia
You have strong financial systems and clear records
Your company is officially registered in the country where you will run the project
Your business and innovation are already making money (not in testing or pilot phase)
You target low-income communities as your:
- Suppliers (people you buy from)
- Customers (people who buy from you)
- Distributors (people who sell your products)
- Employees (people who work for you)

You also need:

No registration in tax havens
To follow all local laws and environmental rules
A unique or innovative product, process, or business model
No history of environmental damage, human rights problems, or corruption
No involvement in harmful industries (weapons, tobacco, alcohol, gambling)
Ability to pay at least 51% of project costs (through cash or in-kind contributions)
To have received less than €200,000 in funding from an EU delegation in your country in the last three years (funding from other EU-based sources is OK)

Note: We do not fund startups or micro companies.

3. In which countries is IAP available?

IAP will consider applicants registered and with operations in Bangladesh, Ethiopia, Uganda, and Zambia.

4. What focus areas does IAP target?

We look for businesses working in:

Food supply and nutrition
Climate Adaptation & Mitigation
Sustainable farming (including regenerative agriculture)
Clean energy solutions for homes and communities (e.g., improved cooking stoves)
Water projects or integrated water, sanitation, and hygiene (including waste management)

Using tech or financial solutions in any of these areas? Whether it’s mobile solutions, digital tools, or innovative payment systems that help poor communities—we really want to hear from you!

Important note: We do not fund businesses that only focus on health or education.

5. How and when do I apply?

Key dates: (Bangladesh application window)

Applications open: 13 August 2025
Final deadline: 10 September 2025

How to apply:

Create a SmartME account to access the application form
Fill out application and submit all documents
We’ll send you a confirmation when we receive your application

To increase your chances of being selected, reach out to your local IAP team with questions or for application support! Use the contact form under this FAQ.

6. Should applications be submitted in English?

Your application must be in English. Don’t worry if your English is not perfect – we care more about your business idea being clear and strong.

7. How does the selection process work?

Access the Application: Register on our application platform SmartME
Prepare Your Application: Fill in the application form (including attachments) on SmartME, with details about your business model, innovation, impact, and financials.
Submit Before 15 Jan 2025: Once your application is complete, submit it through SmartME. You will receive a notification confirming your submission.
Shortlisting and Due Diligence: We review applications to make a shortlist, then conduct due diligence
Present Your Business: If shortlisted, you’ll explain your business idea further
Final Selection and Contracting: If selected, congrats! We’ll create a contract with clear milestones for grant funding and advisory support

8. How long will my business be part of the program?

If selected, you will have approximately 18 months with IAP, starting when you sign the contract and ending in November 2026. This timeline gives you enough room to grow your business while meeting program goals.

9. How does the funding work?

We share the cost of growing your business. You cover at least 51% of the total project cost, and we’ll cover up to 49% with our grant (up to €200,000).

For example, if you wanted to invest €400,000 total in growing your business, here’s how the split would work:

Your contribution: €204,000 (51%)
Our grant: €196,000 (49%)

Important: At least 30% of your contribution needs to be in cash (not just equipment or other assets). In this example, that means at least €61,200 of your €204,000 must be cash. See the next question for more details on your contribution.

10. What counts towards my 51% contribution?

You can use both cash and recently purchased assets (“in-kind”) for your contribution, but there are some rules:

At least 30% must be cash. You’ll need to prove this with:

Bank statements from the past 3 months, or
A loan agreement, or
An investment agreement

For the rest, you can use existing assets (like equipment or buildings) if they:

Were purchased after June 2023
Are specifically and directly related to your project
Have clear proof of purchase value through contracts, invoices, or other documents
Were not received for free through any development programs or facilities

For example: If your total contribution needs to be €200,000, you must provide at least €60,000 in cash. The remaining €140,000 could come from equipment and buildings you bought or constructed in the last 18 months, so long as you have the purchase documents and they are specifically used in your business.

Note: All your contributions will be tracked in your project budget and milestone reports.

11. How is IAP grant money paid out?

IAP will not provide advance payments. We reimburse you for approved expenses after you have made them.

Every expense must:

Be part of your approved project budget
Follow the financial reporting rules in your contract
Match what you proposed in your application

For example: If you buy €50,000 of approved equipment, you will first pay for it, show us the receipts and required documents, and then we will reimburse our share of that expense.

12. What items are eligible and ineligible for IAP funding?

The following items are eligible for IAP financial support:

Capital expenditures (CAPEX): costs related to the construction of buildings and facilities (processing plants, warehouses, etc) and/or the purchase of assets such as machinery, equipment, vehicles, ICT systems, water, and power infrastructure. For CAPEX items with a total cost exceeding EUR 100,000, IAP will only reimburse up to 50% of the total cost for each CAPEX item.
Direct investment in People Living in Poverty (PLIP): such as inputs, tools, equipment, revolving credit schemes, facilities, trainings, etc.
Project operational expenses: transport and travel expenses, administration and recurrent operational costs, salaries for IB project staff (or pro rata salaries for company staff spending time on the project), investment readiness support, leasing of equipment and facilities.
Training and consulting related to the Inclusive Business (IB) project for the grantee and its staff.

IAP funding cannot be used for the following items

Provisions of losses or potential future liabilities
Items already financed from another financing agency
Assets purchased and/or constructed by the grantee prior to contract signing
Purchasing of existing inventory used to produce the IB project goods and/or services
Purchases of land or buildings
Extra allowances, such as sitting allowances, or equivalent to finance allowances for participating staff, invited speakers, participants of workshops and trainings
Travel costs for business or first class
Debts and debt service charges (interest)
Currency exchange losses
Credits to third parties
Bank charges, cost of guarantees, insurance fees, and similar charges
Taxes, permits, business license fees, registration fees, and similar fees
Registration costs for patents and intellectual property rights
Costs of proposal development and related feasibility studies undertaken prior to proposal submission

13. How is due diligence conducted?

Before providing funding, we carefully assess if your business is ready for our investment. We look at seven key areas:

Corporate governance, including legal status; compliance with government regulations; commitment to good governance principles and responsible business practices; organisational structure; systems, policies, procedures and resources (including internal controls, review of ethics guidelines, anti-corruption policies and HR practices); business experience; organisational / financial management capacity
Commercial viability, including financial status of the company, viability of the proposed project, and upscaling potential
Inclusiveness of PLIP and gender equality / women’s empowerment
Environmental impact (including considering elements of EU Corporate Sustainability Due Diligence Directive as appropriate for businesses of this size and in these markets)
Technical feasibility
Compliance with IAP principles on co-investment
Additionality

For example: A strong candidate might be a legally registered business with three years of growth, good financial recordkeeping, clearly measurable and positive impact on low-income farmers, and a good plan to use our grant to reach 5,000 more farmers.

14. What support and advisory expertise will I have access to if I win?

We provide hands-on expertise to help your business grow, including:

Business development advice to strengthen your operations
Strategy development to better serve low-income customers
Training in marketing, distribution, and investment readiness

For businesses showing strong potential, we also:

Connect you with local and regional investors
Provide ongoing investment mentorship to help you secure additional funding

15. Can previous IAP grantees apply again?

No. If your business has received an IAP grant in the past, you cannot apply for another one. We focus our resources on supporting new businesses that not previously received IAP funding.

16. What outcomes does IAP expect from businesses who go through the program?

IAP expects three types of results:

Business Growth – Your company should use the funding and support to become stronger and more profitable. For example, you might expand to new areas, serve more customers, or develop new products.
Better Lives for Low-Income Communities – Your business should directly improve life for people earning less than $5 per day. This could mean creating good local jobs, helping farmers or small business owners earn more, or making essential products and services (like clean water or energy) more affordable and accessible.
Environmental Benefits – Your business should help protect or restore the environment. Some examples include using regenerative agricultural practices, developing a viable circular economy model, or more equitably managing local water sources.

17. Can I try again if I applied in previous rounds?

Yes! If you applied before but were not selected, you are welcome to try again.

18. How many applicants will be chosen?

We will pick fewer than 20 businesses this time, spread across all four countries.