Investment aid for SMEs in the industrial or services sector

This page was last modified on 10-11-2017

The financial aid scheme covering investment or restructuring operations available to SMEs in the industrial sector aims to reinforce the creation, development, rationalisation, conversion or reorientation of businesses operating in the industrial or services sector that constitute a driving force to economic growth.

Applications must be sent to the Ministry of the Economy.

Forms / Online services

Carry out your procedure:

Who is concerned

Eligible businesses

Aid is available to small and medium-sized businesses (SMEs) in the industrial or services sector who act as a driving force to economic growth.

Such businesses must also satisfy the criterion of independence, i.e. 25 % or more of the capital or voting rights may not be held by one or several other businesses that do not fall within the definition of small and medium-sized businesses.

Eligible investments

The following investments are eligible:

  • the acquisition cost of land, infrastructure, constructions, machinery, plant, equipment and fittings as well as the costs relating thereto, provided that they are recorded in the amortisation table and on the balance sheet of the business and that the amortisation period is 3 years or more;
  • the costs and expenses relating to the transfer of techniques or expertise and the acquisition of patents or manufacturing licences, provided that said costs are included on the balance sheet of the business and that the amortisation period is 3 years or more;
  • the costs and expenses relating to training, adapting or retraining the workforce employed or to be employed;
  • the costs and expenses relating to organisational, restructuring, management or control studies carried out prior to an investment or restructuring operation.

Prerequisites

To benefit from investment aid available to SMEs in the industrial or services sector, the business must:

  • be established in Luxembourg;
  • offer sufficient guarantees in terms of viability;
  • be soundly managed;
  • and constitute a driving force to economic growth.

Duration and deadlines

Regardless of the business sector in question, applications must be submitted before the start of the project.

How to proceed

Submitting the application

Applicants must submit the application for financial aidfor SMEs in the industrial or services sector to the Ministry of the Economy.

Additional documents may be requested.

Each application is assessed on a case-by-case basis according to the following criteria:

  • the true merits of the investment or restructuring from an economic, technological and social point of view;
  • the level and type of investment and the creation or protection of jobs;
  • the potential in terms of the creation of added value and the possibilities for export;
  • the financial contribution and size of the applicant;
  • the difficulties that the investment project could encounter given the size of the business applying;
  • the investment project's ability to contribute to growth in the region concerned and improve the structural and regional balance of the economy.

Degree of aid

Aid is provided in the form of a capital grant or interest relief and may amount to a maximum of:

  • 10 % of the eligible expenses of an SME;
  • 20 % of the eligible expenses of a small business.

Financial aid for said SMEs is paid after physical completion of the investment project on presentation of invoices.

However, advances may be given as the project progresses.

Accumulation rules

Investment aid for said SMEs may be combined with a loan from the national credit and investment company (SNCI) provided that the total rate of financial aid does not exceed the stated maximum limits.

Investment aid for industrial SMEs may not be obtained in addition to aid granted by the General Directorate for SMEs and Entrepreneurship.

Repayment

Beneficiaries lose all or part of the aid received if they stop the using or dispose of the investment financed with said aid before the end of a 5-year period starting from when the capital grant was paid.

Who to contact

Ministry of the Economy

B.P. 535 - L-2937 - Luxembourg
Luxembourg
Phone: (+352) 247-84712 (Luc Zuang)
Fax: (+352) 247-74701
Email luc.zuang@eco.etat.lu