Questions from the 2nd Call for Proposals
Q.1 - I have a registered business and I have an idea in the field of tourism. Am I allowed to apply with both? If not, can another team member apply?
A. 1
Kindly refer to the Guideline for Applicants document, Section 3.1 “Eligibility criteria” for an exhaustive list of the eligibility criteria of the Call and Section 3.3 “Number of applications”, where it is stated: “An applicant may not submit more than one (1) application under the 2nd Call for Proposals for the Challenge Fund”.
Q. 2 - I am interested in applying to the 2nd Call of the Challenge Fund. I have currently applied and I am waiting for a response from the support schemes of the Ministry of Entrepreneurship and Tirana Municipality. If my startup is selected as a winner in one of these schemes, can I apply for funds in your scheme for the same idea or for supporting different components within the same idea?
A.2
Kindly refer to the Guideline for Applicants document, Section 4.3.4 “Non-eligible costs”, where it is stated: “The following costs are not eligible: ……………. costs declared by the beneficiary and financed by another project or programme”.
Q. 3 - We are some artisans who do not know the English language and do not use technology much. We would like you to provide us with a link to the Albanian language and the application to be a little simpler.
A.3
Kindly refer to the Guideline for Applicants document in the following sections:
– Section 2 “What is the “Challenge Fund’’? where it is stated: “Applications are only accepted in English language to allow a transparent selection process” and
– Section 5.1 “The application process”, where it is stated: “Applications must be submitted ONLY online on the Challenge Fund platform. All applications submitted by other means (mail, e-mail, hand delivery, etc.) will be rejected”.
Q. 4 - I'm interested in applying to the CHALLENGE FUND under LOT 2 or LOT 3. I'm a business registered in NBC (QKB) in October 2023. Can I apply under LOT 3?
A.4
Kindly refer to the Guideline for Applicants document section 3 “Who can apply?” where it is stated as follows:
“……. Lot 2: Growth stage start-ups, i.e. an active registered business entity (MSME) within the first 12 months of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals) and Lot 3: Scale-up stage start-ups, an active registered business entity (MSME) within the first 13 months to 6 years of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals)”.
For example:
You are eligible to apply under LOT 2, if the business entity registration date is from 09.05.2023 to 09.05.2024 (the date of the publication of the Call for Proposals).
You are eligible to apply under LOT 3, if the business entity registration date is from 09.05.2018 to 09.05.2024 (the date of the publication of the Call for Proposals).
Q. 5 - Can I apply for business registered in 2014 and in 2020?
A.5
Kindly refer to the Guideline for Applicants document section 3 “Who can apply?” where it is stated as follows:
“……. Lot 2: Growth stage start-ups, i.e. an active registered business entity (MSME) within the first 12 months of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals) and Lot 3: Scale-up stage start-ups, an active registered business entity (MSME) within the first 13 months to 6 years of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals)”.
For example:
You are eligible to apply under LOT 2, if the business entity registration date is from 09.05.2023 to 09.05.2024 (the date of the publication of the Call for Proposals).
You are eligible to apply under LOT 3, if the business entity registration date is from 09.05.2018 to 09.05.2024 (the date of the publication of the Call for Proposals).
Q. 6 - What is this grant provided for? Is it provided for the purchase of working materials? For example, I want to do a business and I need to buy the raw materials needed. Is the grant provided only for the purchase of raw materials or only for the purchase of equipment? We need to buy a van to transport the workers and materials to the workplace.
A.6
Referred to Sheet 1 of the “Financial Form”, the grant may be used to cover costs under the following categories: staff costs, administrative costs, and implementation costs.
As per section 4.3.4 of the Guidelines for Applicants “Non-eligible costs”, the purchase of vehicles and mobile phones are not eligible costs. Such costs may be considered for acceptance only if crucial for the implementation of the action.
Q. 7 - Can we obtain the Application Forms in the Albanian language?
A.7
Kindly refer to the Guideline for Applicants document section 2 “What is the “Challenge Fund’? where it is stated: “Applications are only accepted in English language to allow a transparent selection process”.
Since applications are only accepted in English language, the Application Forms are only available in the English language.
Q. 8 - I am a student in the first year of the professional master's degree in applied computer sciences. I have created a website for movies and series as a project in one of the courses I developed. I would like your opinion on the project.
A.8
Kindly refer to section 5.1 of the Guideline for Applicants document “The application process” where it is stated as follows: “To ensure equal treatment of applicants, the contracting authority cannot give prior opinion on the eligibility of applicants, or actions.”
In addition, kindly refer to the Guideline for Applicants document, section 2 “What is the “Challenge Fund’’ where it is specified that the idea consists in an innovative product and/or service, and/or business model, with a fast growth and scale up potential.
Q.9 - The percentage of co-financing is from the perspective of grantee, correct? For instance, for a 10.000 EUR grant, the applicant only has to pay 500 EUR?
A.9
Yes, the percentage of co-financing should be covered by the grantee.
For example, under LOT 1, the proposed budget could be as follows:
| Grant requested from the Challenge Fund under LOT 1 | The co-financing share of the total value of the proposed budget under LOT 1 | Total value of the proposed budget |
| Maximum EUR 10,000 | EUR 526 | EUR 10,526 |
Q. 10 - Can Sole Traders (Person Fizik) apply to the Challenge Fund?
A.10
Yes, Sole Traders (Person Fizik) are eligible to apply under LOT 2 and LOT 3.
Q. 11 - Can VAT costs be included as applicant's own contribution?
A.11
No, VAT costs cannot be included as applicant’s own contribution.
Q. 12 - Are costs related to the rent of the premises and payment for the finance officer eligible costs?
A.12
Yes, they are eligible costs, if they are incurred during the implementation period of the grant. For more information on eligible costs, kindly refer to section 4.3.3 “Eligible costs” of the Guideline for Applicants document.
Q. 13 - Are there any percentage limit on the total cost of the project for the staff costs?
A. 13
Kindly refer to the information provided in Sheet 1 of the “Financial Form”, annex of the Guideline for Applicants. The Staff costs should not exceed 30% of the total cost of the project.
Q. 14 - Can a Limited Liability Company registered today apply to the Challenge Fund?
A. 14
In order to apply under LOT 2 and LOT 3, the business entity should be registered in QKB prior to the date of publishing of this Call for Proposals.
Kindly refer to the Guideline for Applicants document section 3 “Who can apply?” where it is stated as follows:
“The Challenge Fund is open to three subcategories of start-ups:
➢ Lot 1: Idea and Validation stage start-ups, i.e. a founder or a team in the early stages of developing an innovative business idea (not registered in QKB).
➢ Lot 2: Growth stage start-ups, i.e. an active registered business entity (MSME) within the first 12 months of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals).
➢ Lot 3: Scale-up stage start-ups, an active registered business entity (MSME) within the first 13 months to 6 years of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals)”.
Q. 15 - We are registered as farmers. Can we apply to the Challenge Fund?
A.15
Applicants registered as farmers cannot apply to the Challenge Fund.
Q.16 - I have years of experience in building web applications. Can I list a salary for myself in the Financial Form? If yes, considering that my salary is way above 60K per year is there any limitation/criteria for adding a salary for myself?
A.16
All individuals who work for the implementation of the business proposal, including the applicant, may be budgeted under the “Staff” category of expenses.
Kindly refer to the information provided in Sheet 1 of the “Financial Form”, annex of the Guideline for Applicants where it is stated as follows: “Human Resources- Staff costs include direct compensation for the costs of employees working for the implementation of the business idea (gross salaries including taxes and contributions.). As an example, the staff may include i.e Administrator/Manager, IT, Marketing or Finance Officer staff costs, etc. The Human Resources costs should not exceed 30% of the total cost of the project”.
Q.17 - There are various ways I find people to do the design, code and project management work (social media, fiends, platforms like upwork, fiverr, etc) and some of them consist of paying them in cash. Is this ok or should each payment be invoiced?
A.17
Kindly note that the Challenge Fund allows bank payments. However, cash payments are allowed for amounts less than ALL 10,000. It is not allowed to divide a single expenditure into several payments of ALL 10,000 or smaller to enable cash payment.
Q.18 - I have one family member who is registered as a business (person fizik) and works as a software developer (doesn't work for me). Also, another family member who is NOT registered as my employee, but he is helping me sometimes with small tasks aiming to learn more about web development. If I win, I plan to pay them so they can help me move faster. Is it ok if I pay them in cash or through a bank but I don't hire them as my employees? Because I won't be needing them on a monthly basis but part-time requesting help from them for specific tasks.
A.18
Kindly note that the Challenge Fund allows bank payments. However, cash payments are allowed for amounts less than ALL 10,000. It is not allowed to divide a single expenditure into several payments of ALL 10,000 or smaller to enable cash payment.
It is up to the applicant to propose whether to engage the individuals who will be working for the implementation of the business proposals as staff (part-time or full time) or as external experts/consultants.
Q.19 - To speed up my work, I might use the fund to hire designers, developers, devOps, testers. Since I am a software engineer myself, if I see that the budget is tightening, I can do the work myself. That would slow down the work being done but will guarantee the continuation of the project. How should I list these kinds of expenses in the Financial Form document? Should it be "Implementation cost" or "Staff"? And since the prices and the work to be done are NOT 100% clear, is it ok to put prices that in the end result NOT entirely correct?
A.19
The costs for designers, developers, devOps and testers could be included under “Staff” category of expenses or “Implementation costs” category.
The costs/values included in the “Financial Form” should refer to the market prices based on a market study conducted by the applicant. During the evaluation process, the applicant will be required to provide the necessary supporting documents for the market research conducted in order to back up the costs/values provided in the Financial Form.
Q.20 - Is there any kind of evaluation/validation process happening at the end of the 12 months of implementation related to the budget? Because when developing an app there is a lot of uncertainty and costs/expenses might differ. For example, I might have specified that the design work could cost 1,000 EUR but then turns out to be 2,000 EUR. This is very common in building applications where it's very hard to estimate time and cost.
A.20
Kindly refer to answer number 19. Kindly note that all awarded startups will be audited at the end of the implementation period.
Q. 21 - I read in the FAQ online that salaries should NOT exceed 30% of the total expenses. But building a web app is mainly about paying freelancers or even employees to build it. Maybe I got confused and it's not true that there is a limitation as to how much we can declare as salaries/paying people? In the documents there isn't any mention of that limitation.
A.21
Kindly refer to the information provided in Sheet 1 of the “Financial Form”, annex of the Guideline for Applicants where it is stated as follows: “The Human Resources costs should not exceed 30% of the total cost of the project”.
Q. 22 - Can you please elaborate on what exactly this means: "they are identifiable, verifiable, and documented (e.g. contract, invoice, order form), in particular being recorded in the accounting records of the beneficiary and determined to the applicable accounting standards"? Please elaborate and also explain how "cash" payments can be verifiable.
A.22
Kindly find the following explanations:
Identifiable: Costs that can be clearly distinguished and associated with a specific activity of the business proposal.
Verifiable: Costs can be checked and confirmed through evidence, (e.g contract, invoice, order form).
Documented: Written record or documentation for the costs to provide a paper trail for accountability and auditing purposes.
Kindly note that further details on the contractual terms and conditions will be provided in the grant contract if the application results successful.
Q. 23 - The Judicial Records Certificate (Dëshmia e Penalitetit) should be submitted for the shareholders of the start-up in the case when the start-up is registered or for the administrator?
A.23
The Judicial Records Certificate (Dëshmia e Penalitetit) should be submitted for the legal owner or the administrator of the start-up for LOT 2 and LOT 3.
Q. 24 - I have an apartment that I am renting to others. If I win, I want to use it for myself as an office to implement the idea. How should I do that? Should I make a rental contract to rent it to my business?
A.24
Kindly refer to the Guideline for Applicants document section 4.2 “Cost-sharing” where it is stated as follows: “Fix assets and equipment should be proposed only as in-kind contributions. In case of Fix Assets, the Net book value should be equal or higher than the amount of co-shared and will be justified with proper documentation as relevant”.
Q. 25 - I am applying for the second Call for Proposals. I have to upload the document from the court and prosecution, but I am not sure where I can take this document even though I did some research and also, it was not in the list of options in e-Albania.
A.25
Both documents should be submitted in original, obtained physically from the Court and the Prosecution scanned as PDF, as stated in the Guidelines for Applicants.
Q. 26 - Is the Challenge Fund open for NGOs?
A.26
Kindly refer to the Guidelines for Applicants document Section 3.2 “Non-eligibility criteria” where it is stated as follows: “Potential applicants are not eligible to a grant from the Challenge Fund: …………m) political parties, groupings, non-profit organisations, or institutions or their subsidiaries and affiliates”.
Q. 27 - I am a Sole Trader I have several goats and I am thinking of building a farm. I am interested in applying to this call for the construction of a stable. Am I allowed to apply for ideas and if so, what percentage is allowed for infrastructural construction?
A.27
Kindly refer to the Guideline for Applicants document section 5.1 “The application process” where it is stated as follows: “To ensure equal treatment of applicants, the contracting authority cannot give prior opinion on the eligibility of applicants, or actions”.
There is no percentage limit for infrastructural construction works.
Q. 28 - Under LOT 3, should the 70% of the grant be 30,000 Euro and could the 30% of the applicant contribution exceed this limit?
A.28
Under LOT 3, the grant amount should not exceed 70% and the amount of 30,000 Euro. For the co-financing part, the applicant contribution should not exceed 30%.
Q. 29 - I am writing to you regarding the application for "Challenge Fund – 2nd Call for Proposals’ LOT 2. Which is the official form for the documents required to complete the application form according to section 4.4 of the Guidelines for Applicants, which are issued by State Institutions in Albanian (with and without digital stamp), do they need to be translated into English, or notarized?
A.29
The documents requested under section 4.4 “Documents to be submitted” which are issued from the State Institutions, do not need to be translated and notarized.
You should consult the Guideline for Applicants document where details on the format and issuing institution for each document is provided.
Q. 30 - I want to make an investment in my business which, due to the nature of the investment, must be made during June, it cannot be made at any other time of the year. I want to apply for this investment, but since the investment will be made now, if I am the winner, can I pay this investment that I will make this month?
A.30
Kindly refer to the Guideline for Applicants document section 4.3.3 “Eligible costs”, where it is stated as follows: “All costs added in the budget section of the Financial Form must fulfil all of the following criteria……… a) they are incurred during the implementation period of the grant”.
According to the Guideline for Applicants document section 7 “Indicative Timeline”, the grant contracts signature is foreseen in October 2024, thus the costs will be eligible for financing after the signature of the grant contract.
Q. 31 - I want to apply for LOT 3, but I am registered in QKB on 11.04.2018. Am I accepted for this LOT, or should I apply for LOT 1?
A.31
Kindly refer to the Guideline for Applicants document section 3 “Who can apply?” where it is stated as follows:
“……. Lot 1: Idea and Validation stage start-ups, i.e. a founder or a team in the early stages of developing an innovative business idea (not registered in QKB). and Lot 3: Scale-up stage start-ups, an active registered business entity (MSME) within the first 13 months to 6 years of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals)”.
Q. 32 - In the Financial Form, does month 1 refer to the first month of the project's implementation?
A.32
In the Financial Form, month 1 refers to the first month of the project implementation.
Q.33 Is it possible for the owner of the business to be a person who works as an executive director in an NGO and is registered as an NGO in the QKB?
A.33
For the eligibility criteria of this Call for Proposals, kindly refer to the Guideline for Applicants document section 3.1 “Eligibility criteria”.
The Challenge Fund is open to all applicants who fulfill the criteria published in the Guideline document and comply with the requirements of the national legislation/regulations in place.
