The investment aid for companies affected by the coronavirus crisis was set up by the Ministry of the Economy in the context of the government's "Neistart Lëtzebuerg" programme. The aim of this instrument is to encourage companies to carry out economic development, digitalisation, or environmental protection projects, despite the current crisis, by means of financial aid of up to 50% of eligible costs.
Initially scheduled to expire on 30 June 2021, this investment aid will be extended until the end of the year.
The aid scheme is aimed at companies that have suffered a significant drop in turnover during the crisis and provides for three types of aid:
While the maximum aid intensity is maintained at 50% of eligible costs, the maximum aid amount per company is increased to €1,800,000 for applications submitted after the draft law has entered into force, compared to €800,000 currently.
Minister of the Economy Franz Fayot stated that this aid scheme encourages companies to make investments to "improve their competitiveness and produce in a more sustainable way", despite the unfavourable investment climate caused by the health crisis. 207 applications for this type of aid have already been approved by the Ministry's services, for a total aid amount of €62 million. The extension of this aid until the end of the year will therefore allow "continued support for business investment in these difficult times", the Minister concluded.
