Last update 18.10.2018
Aid measures to remedy the damages caused by earthquakes, landslides, floods, tornadoes, hurricanes and wild fires of natural origin can, in certain conditions, be granted to any small or medium-sized enterprise.
Who is concerned
All small or medium-sized enterprises (SMEs) which are legally established in Luxembourg can benefit from the aid. A definition of eligible SMEs can be found in the terms and conditions applicable to all aid measures 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.
The payment of aid has to be applied for, on pain of ineligibility within a 5-year deadline from the date the event occurred.
How to proceed
Submitting an application
The Ministry of the Economy makes available a sample application template for aid for the project in question.
The completed application file, dated and signed, together with its annexes, must be sent to the Ministry of the Economy by post or email (see the section Who to contact below).
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 the independent approved expert or 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 avoided 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.
The financial aid aimed to remedy the damages suffered by certain natural disasters will be granted within 4 years from the occurrence of the event.
Amount of aid
There is no limit to the amount of aid that can be granted. However, it is not possible to have an antiquated piece of equipment replaced by a new one.
The material loss is calculated on the basis of the repair costs of the equipment concerned or itseconomic value before the occurrence of the event. The expert report must detail the damages to movable and immovable assets as well as their value.
The loss does not exceed the repair costs or the decrease of the market value caused by the disaster (the difference between the value of the equipment immediately prior to the occurrence of the event and its value immediately after the event).
The ministers may not grant aid in excess of EUR 100,000 prior to having requested the opinion of a consultative commission The consultative commission can collect any information on the project, the investment or the beneficiary which is deemed useful, it can hear the applicant and demand the presentation of a business plan or equivalent documents, if applicable. It can also seek advice from experts.
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 can be paid out.
Depending on the general terms and conditions which apply to all types of aid for SMEs, the investment aid:
- may potentially be combined with other types of financial aid;
- may potentially have to be reimbursed and sanctions may be applied.
Forms / Online services
Aid to repair the damage caused by natural disasters
Aides destinées à remédier aux dommages causés par certaines calamités naturelles
Beihilfe zum Ausgleich von Schäden infolge bestimmter Naturkatastrophen
Who to contact
General Directorate - SMEs, Entrepreneurship and the Internal Market (department for support to SMEs)
B.P. 535 - L-2914 Luxembourg
Phone : (+352) 247-84712Fax : (+352) 247-74701