Norwegian National Budget 2026: Proposed cuts to loans and grants for entrepreneurs and businesses
'Norway faces a dual challenge in the years ahead: Businesses must transform to meet our climate targets. At the same time, our most profitable industry, oil and gas, will gradually cease to be the engine of growth it has been for the Norwegian economy. To meet this significant need for transformation, we have called for increased investment in innovation, not cuts. This proposed budget weakens investment in innovation and our future competitiveness,' says Håkon Haugli, our CEO.
The government's proposed national budget includes the following cuts to the funding we offer businesses:
- Funding for startup grants, loss provisions for innovation loans and innovation contracts will be reduced by NOK 94 million.
- Grants for environmental technology will be reduced by NOK 72 million.
- The 'Green Investment Grant' will be discontinued, and the NOK 100 million allocation will be cut.
- The lending limit for 'Green Industrial Financing' will be reduced from NOK 5 billion to NOK 4.1 billion.
- The innovation loan scheme for low- and zero-emission vessels will be paused (funding limit: NOK 400 million).
'The largest allocations in this year's national budget go to health and defence. Investing in research and innovation in these sectors as well would create greater momentum and a more long-term approach. Many of our customers are developing forward-looking solutions for health and defence,' says Haugli.
The cuts will primarily affect businesses, but will also mean a reduction in our workforce. We will decide how to implement this once the final national budget has been adopted in December.
Transfer of the business garden and incubation programmes to Innovation Norway
The government proposes transferring Siva's business garden and incubation programmes to us. In practice, the programmes will continue, while their administration and 12 full-time equivalent positions will move from Siva to us. As our funding for supporting entrepreneurs is reduced, business gardens and incubators will play a more important role. At the same time, it will be essential to take a coordinated approach to innovation activities.
Removing regional disparities in startup support
Startup grants (Startup 1) for entrepreneurs will move from the county authorities to the Ministry of Trade, Industry and Fisheries. The proposed cuts will reduce our ability to support entrepreneurs, but give us greater freedom to prioritise regional startup funding where it will have the greatest impact on innovation and growth.
Too few to promote Norwegian exports
Our international presence has declined over several years. Under the proposed national budget, our capacity to promote Norwegian exports abroad will continue to fall.
'We already have limited resources to support Norwegian businesses in international markets, particularly compared with our neighbouring countries. At a time when international trade has become more challenging and companies are seeking more support and advisory in overseas markets, we need to reverse this trend. We have proposed strengthening this work, because efforts to increase Norwegian exports must take place out in the world,' says Haugli.