Last update 10.04.2020
The Ministry of the Economy can grant financial aid to businesses investing in the production of goods relevant to combating the Covid-19 pandemic.
Any business that holds a business permit (autorisation d'établissement) carrying out an investment project for the production of relevant goods in the fight against the Covid-19 pandemic
Certain businesses are excluded from the aid scheme; these are:
The investment projects may relate to:
The amount of aid is based on the business' allowable costs.
'Allowable costs' are the undertaking's investments in tangible and/or intangible assets:
Applications for financial aid must be submitted during the period of the state of crisis.
Applicants or their representative must complete the form and print it.
A person authorised to commit the company must sign the document.
The application, along with its supporting documents, can be sent to the Ministry of the Economy either electronically as a scan (firstname.lastname@example.org) or by post.
Sending the application electronically is the preferred option.
If the application is sent by post, the envelope should be addressed as follows:
Ministère de l’Economie
Direction générale - Recherche, propriété intellectuelle et nouvelles technologies (Direction de la Recherche et de l'Innovation)
19-21, boulevard Royal
Mailing address: L-2914 Luxembourg
The company may also, upon request, have the benefit of hedging to cover 30% of its losses. However, this cover may not exceed EUR 500,000 in respect of production maintained over at least 5 years.
The application must contain:
The aid application may contain any other document deemed useful by the business and allowing the Minister to assess the merits of the application for aid.
The Ministry of the Economy may, moreover, request any other document in order to facilitate processing the application.
The aid, in the form of a direct subsidy, must be granted during the state of crisis period.
The hedging is issued within one month of the date of the undertaking's request.
The amount of the aid is calculated on the basis of the allowable costs, and may not exceed 80% of the allowable costs.
It may be increased by 15 % of the allowable costs if the investment is completed within 2 months of the aid being granted or if another member State grants aid for the same allowable costs.
The amount of the loss to be compensated will be determined no later than 5 years after completion of the investment, and will correspond to the difference between:
The amount may not exceed EUR 500,000 per project if production has been maintained for at least 5 years after the completion of the project. If the company stops production before then, the maximum amount of the cover to hedge losses will be calculated on a pro-rata basis.
This investment aid will be paid in the form of a capital subsidy once the project has been completed.
One or more advance payments may be made while the investments for which the aid has been granted are in hand.
Hedging cover also takes the form of a capital subsidy.
This aid may not be cumulated in respect of the same admissible costs with:
The aid may be cumulated with:
All individual amounts of aid granted are posted on the European Commission's transparency website at the latest within 12 months of being granted, in accordance with Annex III of Commission Regulation (EU) No 651/2014 of 17 June 2014. More specifically, granting authorities are required to publish the following information with regard to the individual amounts of aid awarded:
The investment project must be completed within 6 months of the aid being granted.
Completion of the project is noted by the Minister.
All decisions on refusing or partially refusing aid and all decisions on the reimbursement of aid are administrative decisions. Anyone concerned by such a decision may contest it via the usual means of appeal (non-contentious appeal, judicial appeal), provided the applicable legal deadlines are complied with.
If the project is not completed within 6 months of the aid being granted, the beneficiary will be required to repay, for each month of late completion, 25 % of the amount of aid received, unless the delay is due to factors beyond the beneficiary's control.
Beneficiary businesses that were granted aid shall be obliged to repay said aid if, before the project completion date agreed with the state, they:
The aid may also be lost if, within a period of 5 years from the date of the full payment of the capital subsidy, the funds:
unless the beneficiary receives prior agreement from the Minister and the transfer, abandon or change in use is caused by force majeure or circumstances beyond the beneficiary's control.
Beneficiaries are also required to repay the aid if:
Reimbursement covers the amount of aid paid plus interest at the legal rate applicable at the time of granting, before expiry of a period of 3 months from the date of the ministerial decision on reimbursement, unless the decision provides for a different deadline.
A beneficiary of aid obtained on the basis of knowingly false or incomplete information shall be liable to a prison term of between 4 months and 5 years and a fine of between EUR 251 and 30,000 in addition to being required to reimburse the aid received.
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Aide à l’investissement en faveur de la production de produits pertinents pour la lutte contre le COVID-19