Investment aid for craft or commercial SMEs

This page was last modified on 10-11-2017

The financial investment aid scheme for SMEs aims to promote the creation, takeover, development, conversion, modernisation and rationalisation of small and medium-sized businesses in the craft or commercial sector.

Aid is granted in the form of a capital subsidy or interest subsidy.

Applications for financial aid are to be submitted to the General Directorate for SMEs and Entrepreneurship at the Ministry of the Economy.

Forms / Online services

Carry out your procedure:

Who is concerned

Eligible businesses

This aid is intended for small and medium-sized businesses in a craft or commercial sector holding a business permit granted by the Generale Directorate for SMEs and Entrepreneurship (Direction générale PME et Entrepreneuriat).

It also applies to the following liberal professions: engineers and architects during their first 3 years of business (as of the date of their first Luxembourg or foreign business permit).

However, businesses carrying out certain specific activities are not eligible for the aid scheme.

Eligible investments

Eligible investments are:

  • investments in tangible fixed assets: investments in tangible fixed assets relating to the creation of a new business, the extension or modernisation of an existing business or the starting up of an activity that involves fundamental changes to the product or production process of an existing business.
    Taking over a business that has closed down or that would have closed down were it not for the takeover qualifies as an eligible investment but the aid may not be allocated more than once to the same economic entity over a period of 10 years;
  • investments in intangible fixed assets: investments in a technology transfer by acquiring patents, licences, know-how or unpatented knowledge.

Prerequisites

To benefit from SME investment aid, the business must:

Duration and deadlines

Aid must be requested, on pain of ineligibility, within a period of 2 years from the payment of the expenses for which aid is requested.

How to proceed

Submitting the application

Applicants must submit a duly completed application for financial aid for SMEs (demande d'aide en faveur des classes moyennes), by post to the General Directorate for SMEs and Entrepreneurship.

Aid is paid out after completion of the investment programme and on presentation of the following supporting documents:

  • invoices and proof of payments (e.g. bank statements);
  • in certain cases, a business plan or equivalent documents or measures proving the viability of the project and the reliability of its promoters;
  • where applicable, the loan conditions granted by the credit institution.

Degree of aid

Aid is provided in the form of a capital or interest subsidy and can amount to a maximum of:

  • 10 % of an SME's eligible expenses in tangible and intangible fixed assets;
  • 20 % of the eligible expenses of a small business for the acquisition of tangible or intangible fixed assets.

The amount of aid may be increased by 10 % in the case of a business start-up or takeover.

In principle grants are paid in a lump sum, after completion of the investment programme. However, payments in one or more tranches may be granted in specific cases as the project progresses, in particular where the beneficiary resorts to financing by leasing.

Interest rate subsidies and interest relief amount to the difference between the market interest rates in force at the time the aid is granted, applicable to the category of operation concerned, and the reduced interest rate effectively paid by the beneficiary.

Accumulation rules

Investment aid for craft or commercial SMEs may be combined with a loan from the national credit and investment institution, SNCI, provided that the total rate of financial aid does not exceed the stated maximum limits.

SME investment aid may not be obtained in addition to other aid granted by the Ministry of the Economy.

Repayment

Beneficiaries must reimburse all or part of the aid received if they transfer or dispose of the investment financed with said aid within 10 years following the investment.

Who to contact

Ministry of the Economy

B.P. 535 - L-2914 - Luxembourg
Luxembourg
Phone: (+352) 247-84712
Fax: (+352) 247-74701
Email info.aide.pme@eco.etat.lu