Kmo-portefeuille and AI in Flanders: the end of the scheme and alternatives
In short
The Flemish government is ending the kmo-portefeuille (SME wallet) from 1 January 2027; its 2026 budget has been exhausted since 15 October 2026, so no new applications are possible. For an innovative AI project, VLAIO's development project grant remains open all year: 25% to 50% of accepted costs, with at least €25,000 in support.
Key takeaways
- No new kmo-portefeuille applications have been possible since 15 October 2026.
- Applications already under way can be completed until 31 December 2027.
- Training remains tax-deductible but is no longer subsidized through this scheme.
- VLAIO's development project grant funds innovation projects, AI included, all year round.
- Verified on 21/10/2026 on vlaio.be.
What is happening to the kmo-portefeuille?
The kmo-portefeuille (SME wallet) is being scrapped: the Flemish government decided this in its September policy statement, with the scheme ending on 1 January 2027, and its 2026 budget has been exhausted since 15 October 2026. In practice, no new application can be filed.
Information verified on 21/10/2026 on vlaio.be (in Dutch). SMBs with an application in progress can complete it until 31 December 2027 and track it through their online account.
What the kmo-portefeuille used to fund
The kmo-portefeuille subsidized part of the training and advice that Flemish SMBs bought from registered providers. It was widely used to train teams, including on digital tools.
| Item | Small business | Medium-sized business |
|---|---|---|
| Training (base rate) | 30% | 20% |
| Digitalization-cybersecurity or sustainability training | 45% | 35% |
| Advice (cybersecurity only since 01/02/2026) | 45% | 35% |
| Annual cap | €7,500 | €7,500 |
Eligible beneficiaries were SMBs, liberal professions and approved social enterprises with a site in the Flemish Region.
What are the alternatives for an AI project in Flanders?
For a genuinely innovative AI project, VLAIO's development project grant (ontwikkelingsproject) is the main support that stays open all year. It targets projects that develop a new or improved product, process or service.
The key rules:
- Rate: 25% base, +20% for a small business or +10% for a medium-sized one, +10% for collaboration between independent companies; up to 50% of accepted costs (60% for interregional or international collaboration).
- Amount: from €25,000 to €3 million in support per project.
- Costs covered: salaries of staff working on the project, overheads, external experts and subcontractors, depreciation of necessary investments.
- Duration: normally up to 24 months.
- Not retroactive: the start date is at the earliest the first working day of the month after you submit a complete application.
An example of a project that may qualify: an AI agent that automates a business-specific process, with genuine technical uncertainty to resolve. Buying a standard chatbot with no development does not fall within this scope.
VLAIO's business advisors help companies prepare a project proposal. For cybersecurity, VLAIO now points to its cybersecurity improvement programs.
And training your teams in AI?
Without the kmo-portefeuille, AI training is no longer subsidized through this route, but its cost remains tax-deductible as part of your business activity. VLAIO made this point when announcing the end of the scheme.
A short course focused on your teams' real tasks is still a good starting point: see our guide AI training for business. The AI Act also requires organizations that use AI to ensure sufficient AI literacy among their staff.
To compare with Wallonia and Brussels: Funding an AI project in Belgium.
Official sources
Verified on 21/10/2026 (in Dutch):
- Kmo-portefeuille — VLAIO
- Flemish government decides to end the kmo-portefeuille — VLAIO, 1 October 2026
- Development project: innovation grant — VLAIO
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FAQ — Kmo-portefeuille and AI in Flanders
Can I still apply for the kmo-portefeuille?
No. The 2026 budget has been used up since 15 October 2026 and the Flemish government decided to end the scheme from 1 January 2027. Only applications already submitted can still be followed up and completed, until 31 December 2027.
What did the kmo-portefeuille fund?
Training and advice from registered providers: 30% for a small business and 20% for a medium-sized one, 45% and 35% for digitalization-cybersecurity and sustainability topics, capped at €7,500 a year. Since 1 February 2026, only cybersecurity advice was still eligible.
Can VLAIO fund a chatbot or AI agent project?
Possibly, through the development project grant, if the project involves enough innovation and risk and adds clear value: a new or improved product, process or service, a prototype or a pilot phase. With minimum support of €25,000, it targets projects of a certain size, not the purchase of a standard tool.
Is AI training still supported in Flanders?
The kmo-portefeuille no longer subsidizes training for new applicants. VLAIO points out that training costs incurred as part of a business activity remain tax-deductible. VLAIO's expertise database also lists training courses, advice and coaching.
