The 'SME Packages Sustainability' aid scheme is being extended to provide greater incentives for businesses to invest in measures that substantially reduce their environmental impact, for example through:

• the increase of energy efficiency;
• the production of energy from renewable sources;
• the reduction of water consumption and pollution;
• the recycling and reuse of waste.

The temporary environmental impact aid can be combined with the SNCI recovery loan (prêt de relance).

Who is concerned

Eligible businesses

All businesses that hold a business permit issued by the General Directorate for Small and Medium-Sized Enterprises (Direction générale des Classes moyennes).

Eligible costs

Eligible costs are investment costs for tangible assets, such as:

• machinery and equipment with a unit value of more than EUR 750 for use other than for rental purposes;
• investment in photovoltaic panels (maximum 60 kWp) for own consumption;
  
• the extension/renovation of buildings used to accommodate a craft or commercial activity, with the exception of buildings used exclusively for residential, rental or administrative purposes.

Prerequisites

The aid is granted for new projects/investments (incentive effect), when they have the effect of substantially reducing the company's environmental impact, for example through:

• the increase of energy efficiency;
• the production of energy from renewable sources;
• the reduction of water consumption and pollution;
• the recycling and reuse of waste.

The extent of any substantial reduction in the company's environmental impact must be assessed by an accredited independent expert in the field.

The company will be assisted in its choice of an expert:

• by the eHandwierk service for craft businesses:
  • phone: (+352) 42 67 67 - 505
  • email: ehandwierk@cdm.lu
• by the House of Sustainability for all non-craft sectors:
  • phone: (+352) 42 39 39 - 450
  • email: sustainability@cc.lu

The incentive effect is satisfied when the company has submitted a full application for aid to the granting authority prior to the commencement of work on the project in question.

How to proceed

Filing an application

Applications for temporary environmental impact aid and the SNCI recovery loan should be submitted using the application form (see 'Forms/Online services').

In order to sign the form, the applicant needs:

• a LuxTrust product (Token, Smartcard or Signing Stick); or
• an electronic identity card (eID).

Supporting documents

Applications for aid and the SNCI recovery loan must include the following information and documents:

• the name of the company;
• the current signed legal organisation chart showing the structure and size of the company and the company's shareholder structure up to its beneficial owner(s), in accordance with Annex I of Regulation (EU) No. 651/2014 of the Commission of 17 June 2014 (GBER);
• a description of the investment project, including its start and end dates;
• a description of how the investment project will be operated and its environmental impact;
• the assessment of the accredited independent expert in the field;
• the location of the investment project;
• the total project cost;
• a list of eligible costs of the investment project;
• a financing plan;
• the form and the amount of financial aid required for the investment project;
• any other relevant information which would help assess the qualities or the specific features of the project or programme and its incentive effect;

In addition, applications for the SNCI recovery loan must include the following information and documents:

• audited annual accounts for the last 3 financial years;
  
• information sheet on the solvency of the partners/shareholders;
  
• declaration form of the company's beneficial owner(s);
  
• overview of the bank commitments;
  
• 3-year provisional business plan.

Amount of aid

The maximum amount of aid for each project may not exceed:

• 70 % of eligible investments for small businesses;
• 60 % of eligible investments for medium-sized businesses;
• 50 % of eligible investments for large businesses;

while not exceeding EUR 100,000 per group.

For any investment project, the amount of aid may not be less than EUR 7,500.

Amount of the recovery loan

The amount of the recovery loan can cover up to 50% of eligible investments, up to a maximum of €250,000 per group.

Guarantees: personal, joint and several and indivisible guarantee from 100% of the shareholders/partners up to the amount of the loan.

Interest rate: 5.85% p.a.

Term: maximum 7 years including a maximum grace period of 12 months.

Payment of the aid

The aid is paid in the form of a capital grant once the investments for which it was awarded have been completed.

However, one or more advance payments may be made as and when the investments or expenditures for which the aid was granted are carried out.

Repayment

The company must repay any amount unduly received if an incompatibility is found after the aid has been granted.

Forms / Online services

Who to contact