When it comes to grants, it is common that we consider as a broad concept that refers to any type of funding received. However, when you delve into the process of applying for a grant, we can observe the different types of assistance we can get and we often find ourselves with clauses linked to a crucial requirement that could jeopardize our application: the question of whether we have exceeded the established limit for aid de minimis.
For companies and freelancers who venture for the first time into the world of grants, this requirement poses no obstacle. But what happens if we have already requested financial support in the past? How can we determine whether these payments are considered to aid de minimis?
In the first place, it is crucial to note that this requirement does not apply uniformly to all grants, being more common in those related to European Funds. This is because Spain, as a member of the European Union, is subject to regulations that seek to ensure the proper functioning of the common market.
What are the aid de Minimis?
The term "aid de minimis," which comes from the Latin for "little things", it refers to grants-cumulative quantities which do not exceed the limits that the European Commission considers capable of altering the trade in the european market. In summary, this means that the total amount of subsidies received does not have a specific limit, unless it exceeds a threshold of income that could confer a competitive advantage over other companies. These subsidies include direct grants, loans and deductions in the interests of bank loans.
According to the European Regulation, it is stated that for a period of three years (the current fiscal year and the two preceding years), the total of these payments should not exceed 200,000 euros. This applies to self-employed and businesses, including SMES, but the limits vary according to the sector in which they operate:
– For transport companies, the limit is set at 100,000 euros.
– For companies related to fisheries and aquaculture, the limit is 30,000 euros, provided that the total amount of the aid granted to the firms is less than 2.5 % of the annual production of the national sector. And for the companies involved in the primary production of agricultural products, the limit is 20,000 euros.
These limits are designed to prevent distortion of competition and to ensure equal conditions between the companies in the european market.
How to calculate the amount of the benefits received?
As mentioned above, these grants are cumulative, so it is necessary to calculate the sum total of the grants received directly. In the case of aid in the form of loans, the purpose of which is to finance a business or project and is expected to be paid back within a specified period, the calculation is made from the equivalent gross grant, typically provided by the entity that grants it.
To avoid these calculations, you can access to National Databases of Grants to get a detailed report of all of the aid received.
With this, we can understand what they are and how they function this kind of support, but to know the conditions and their compatibility, it is recommended to consult experts to be well informed and have customized financial solutions to the context of the entity.
