Aid measures to remedy the damages caused by earthquakes, landslides, floods, tornadoes, hurricanes and wild fires of natural origin may, under certain conditions, be granted to any small or medium-sized enterprise.
Who is concerned
This aid is intended for small and medium-sized enterprises (SME) holding a business permit granted by the General Directorate for Small and Medium-Sized Enterprises (Direction générale des Classes moyennes) in accordance with the general terms and conditions applying to aid for SMEs.
All costs resulting from the losses suffered as a direct consequence of the natural disaster are admissible costs. The loss must be assessed by an independent approved expert or an insurance claims assessor.
The loss can include material damages caused to assets such as buildings, equipment, machinery or stocks as well as the loss of income due to the damages suffered.
In order to benefit from aid to remedy the damages caused by earthquakes, landslides, floods, tornadoes, hurricanes and wild fires of natural origin, it is necessary that:
- the Government in council has officially recognised the event as a natural disaster; and
- the is a direct causal link between the natural disaster and the damages suffered by the business concerned.
How to proceed
Filing an application
The Ministry of the Economy makes available a sample application template for the project in question.
The completed application and accompanying documents must be dated and signed by a person authorised to sign on behalf of the company and must be submitted before work starts on the project to the Minister of the Economy by post or email. In the event of a submission by post, the following must be indicated on the envelope:
Ministère de l'Economie
Demande d'aides d'Etat
Aid schemes granted to remedy the damages caused by natural disasters will be granted within 4 years from the occurence of the natural disaster.
Applications for aid must include the following information and documents:
- the name and size of the business (any document deemed necessary may be requested for the determination of the size of the business);
- the report drafted by an independent approved expert or an insurance claims assessor.
The business must grant the Minister of the Economy and the Minister of Finance the authority to verify with the Luxembourg Inland Revenue, the Registration Duties, Estates and VAT Authority and the Joint Social Security Centre that the business has not evaded its tax and social obligations. If not, the business must attach the certificates issued by these administrations providing proof that all tax and social charges have been duly paid.
Maximum amount of financial aid
The amount of aid is not limited. However, it is not possible to have an old and used item replaced by a new one.
The value of the material loss will be calculated based on the repair costs of the item concerned or on its commercial value prior to the occurrence of the natural disaster. The expert's report must precisely indicate and detail all the movable and immovable assets damaged as well as its value.
The value of the material loss does not exceed the repair costs or the decrease of the commercial value caused by the natural disaster (the difference between the value of the item immediately before the occurrence of the natural disaster and its value immediately after the natural disaster).
Payment of aid
The aid can take the following forms:
- a subsidy;
- a recoverable advance payment;
- interest relief. The aid may be paid out by an intermediary, such as a credit institution or a financial establishment under public law.
One or more advance payments may be made.
The payment of financial aid must be requested, on pain of ineligibility, within a period of 5 years from the date the natural disaster occurred.
Forms / Online services
Aid to repair the damage caused by natural disasters
Modèle de demande d'aide pour remédier aux dommages causés par certaines calamités naturelles
Beihilfe zum Ausgleich von Schäden infolge bestimmter Naturkatastrophen
Who to contact
General Directorate for Small and Medium-Sized Enterprises (Department for Support to SMEs)
Postal address :
B. P. 535, L-2937 Luxembourg
Phone : (+352) 247-74704Fax : (+352) 247-74701