De minimis aid
The European Commission considers that public funding to a
single recipient of up to €200,000 over a 3 year fiscal period
has a negligible impact on trade and competition, and does not
require notification. This aid can be given for most purposes,
including operating aid, and is not project-related.
This does not mean that all funding under the €200,000 ceiling
should be counted as de minimis. It is strongly recommended to
give even small amounts as aid under a specific approved scheme,
or a block exemption, if possible, and to keep the de minimis cover
as a back-up for when there are no other options.
- The maximum de minimis funding any single recipient can
receive is €200,000 (cash grant equivalent) over a 3 year
fiscal period. The sterling equivalent is calculated using the
Commission exchange rate applicable on the written date of
offer of the de minimis funding.
- This ceiling takes into account all public assistance given as
de minimis funding over the previous 3 years and which can
take various forms (grants, loans, subsidised contracts, etc).
Aid given under an approved scheme does not have to be
cumulated with de minimis aid.
- An example of de minimis aid is the Small Firms Loans
Guarantee Scheme. Many other awards from local authorities
and the enterprise networks are given as de minimis aid.
Exclusions:
- De minimis aid cannot be given for export related activities
(except attendance at trade fairs), agriculture and fisheries
or aid favouring domestic goods over imports.
- De minimis aid does not affect the level of state aid that
a recipient can receive under any other schemes approved
by the Commission, i.e. it is only cumulated with other
de minimis aid.
Administration:
- When granting de minimis aid you must ensure that the new
award does not breach the €200,000 ceiling over a 3 years
fiscal period.
- You must ask the enterprise concerned about any aid
received during the previous 3 years and determine how
much of this was de minimis aid.
- You must also inform the recipient explicitly that it is
de minimis aid you are giving them, for their future reference.
The offer letter should include the value of the award in euros
and the following paragraph:
Under EC regulation 1998/2006 ( de minimis aid regulation), this is a de minimis aid. There is a ceiling of €200,000 for all de minimis aid provided to any one firm over a 3-year period. Any de minimis aid awarded to you under this offer letter will be relevant if you wish to apply, or have applied, for any other de minimis aid. For the purposes of the de minimis regulation, you must retain this letter for 3 years from the date on this letter and produce it on any request by the UK public authorities or the European Commission. (You may need to keep this letter for longer than three years for other purposes.)
You can read our de minimis FAQs or speak to the State Aid Unit
if you have any questions about de minimis aid.
You may also find it useful to read the full text of the regulation on
the European Commission's Competition website.