EU Funding Made Simple: Guide to De Minimis Aid for Businesses

The European Union (EU) has developed a comprehensive treaty that regulates how the EU operates. This treaty explicitly prohibits state aid that could provide companies with an unfair competitive advantage. To ensure this, the de minimis regulation was introduced, which limits the amount of state support a business can receive without jeopardizing the competitiveness of other market participants.

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De minimis regulations cover state funding granted to businesses in the European Union (EU) and its member states. These are characterized by relatively small aid amounts and less stringent notification requirements. The aim of the de minimis regulation is to reduce administrative burden for small and medium-sized enterprises (SMEs) and facilitate access to funding.

What are De Minimis Aids?

De minimis aids are state subsidies that businesses in Germany and the EU can receive while meeting SME criteria. This support is limited to a total amount of €300,000 over a period of 3 calendar years. This is not a standalone funding program but rather a general regulation that enables financial assistance through various funding programs.

Only measures whose financial benefit can be clearly determined in advance are eligible under the de minimis regulation. These include in particular grants, but also loans, guarantees, and equity investments under certain conditions.

A new de minimis aid can only be granted if the maximum amount of €300,000 is not exceeded within the current three-year period.

Types of De Minimis Aids

There are various types of funding programs that fall under de minimis regulations and can be granted for different purposes. The most common types include:

• Investment Aid: This aid can be granted for the acquisition of new machinery, equipment, or other investments.
• Operating Cost Aid: This aid can be granted for ongoing operating costs such as rent, energy, or personnel costs.
• Consulting and Training Aid: This aid can be granted for consulting or training services.
• Research and Development Aid: This aid can be granted for research and development projects.

Requirements for De Minimis Aids

To receive de minimis aids, businesses must meet various requirements.

These include, among others:

• The business must be established in the EU or one of its member states.
• The business must not be in difficulty within the meaning of Article 107(3)(c) TFEU.
• The aids must not be used to finance activities that are prohibited by the EU or its member states.

The de minimis regulation generally applies to aids for businesses in all economic sectors.

However, there are exceptions for businesses in the following sectors:

• Fisheries and aquaculture,
• agricultural primary production,
• Processing and marketing of agricultural products,
• certain export-related activities, and
• for the acquisition of vehicles for road freight transport.

Applying for De Minimis Aids

De minimis aids are typically applied for with the relevant authority of the respective member state. Applications must contain various information, such as the type of funding, the purpose of use, and the amount of aid requested.

What you should keep in mind when applying for de minimis aids:

• Before submitting an application, thoroughly research the requirements and funding conditions of the individual funding programs.
• Ensure that you have completed all required documentation fully and correctly.
• Keep all evidence of how the aids were used.
• Observe the deadlines for applying for de minimis aids.

Example: Business Group – Treated as a Single Enterprise

Question: Which businesses should be considered together as a single enterprise under de minimis regulations?

Answer: Businesses A, B, and C form a single enterprise under de minimis regulations. Business D is not part of this group because Business C does not hold a majority stake in Business D. Therefore, previous funding amounts to €160,000. Consequently, there remains a funding opportunity of €140,000 for general de minimis aids.

Further Information

For more information on de minimis aids, please visit the following websites:

• European Commission
• Federal Ministry for Economic Affairs and Climate Action
• Federal Funding Database