State grants are aids of a financial nature and as such are necessary for the states that use the mentioned funds. We distinguish several types of state aid, both in the European Union and in the territory of the Republic of Croatia. The division in the Republic of Croatia is characterized by one sectoral and one horizontal. Also, they have their own divisions. The definition of state aid in a member state of the European Union necessarily begins with the citation of Article 3 of the Treaty on the Functioning of the European Union, paragraph 1 of which states that the Union has exclusive jurisdiction in the areas of the customs union, in determining the rules on market competition necessary for the functioning of the internal market, in monetary policy for member states whose currency is the euro, in the preservation of marine biological resources within the framework of the common fisheries policy and in the common trade policy. In the Republic of Croatia, sectoral divisions are more pronounced than horizontal ones. In the European Union, the situation is different. Namely, horizontal support prevails in the EU because it has a positive impact on the development of the economy. Pursuant to the law, providers of state aid or small value aid are the central body of state administration, local and regional self-government units and any legal entity that grants such aid.