Sometimes you just need a little help.

Can the minimum contribution of 30% be made up of fixed assets (land, facilities already built, etc.) or is it a cash contribution only?

Fixed assets already acquired cannot be included in the personal contribution. On the other hand, if the entrepreneur makes a personal donation to a building or piece of equipment that is necessary for the implementation of the project, this represents a new resource invested and can therefore count towards the personal contribution.

Is it possible to combine a grant from the Luxembourg Cooperation with co-financing from the LuxAid Challenge Fund?

It is not possible to include any other Luxembourg cooperation grant in the resources contributed by the applicant to finance the project proposed within the framework of the LuxAid Challenge Fund. However, grants from other cooperations for the same project can be included in the project’s resources (personal contribution);

If my project is selected, what can I expect in terms of co-financing payments?

As soon as the agreement has been signed by both parties, a first tranche of 25% of the grant amount will be paid,after any conditions precedent have been lifted. Payment of a second installments of 50% of the grant amount will be madeon the basis of a technical report demonstrating achievement or progress in achieving the indicators andconditionalities,and a financial report justifying the expenditure actually incurred corresponding to half the total budget. The balanceof up to 25% will be paid on the basis of a final technical and financial report demonstrating the results of the project and justifying the expenditure actually incurred corresponding to the fulĺ of the budget. Payment of the balance is capped at the expenses actually incurred.

My company took out a loan to build our plant. Is this loan part of the financing package included in the eligibility criteria?

The 300 000 euros of accumulated financing includes the loans, so this loan is indeed part of the accumulated financing.

Does the 300,000 euro limit for cumulative financing also apply to a subsidiary?

The limit of 300,000 euros in cumulative funding applies to the legal entity/business company submitting the application.

Is the amount ranging from EUR 50,000 to EUR 140,000 to be shared between the beneficiaries, or is only one winner selected for this competition? Is there a national envelope? How many projects will be selected in each country?

LuxAid Challenge Fund has an envelope of 1 million euros to share between the best projects in the 3 countries(around 15), for co-financing ranging from EUR 50 000 to EUR 140,000 per company.

There is no quota of projects per country. The best projects will be selected, regardless of the country in which the company is registered.

Will co-financing have to be repaid?

The financial support provided by LuxAid Challenge Fund is non-refundable;

What types of expenditure are eligible?

To be eligible for co-financing, expenses must meet all of the following criteria (without being exhaustive):

be necessary for the realization of the action (economic activity), directly attributable to the latter, resulting directly from its implementation ;
be borne by the company, i.e. they represent real expenses actually and effectively incurred by the project owner;
be reasonable, justified and in line with the principle of sound financial management, as well as with the usual practices of the project owner, whatever the source of funding. Procurement contracts must comply with normal purchasing practices, provided that the contract is awarded to the bid offering the best value for money, and that any conflict of interest is avoided;
be due during the period of implementation of the co-financed project, consistent with the scope and schedule of activities;
be identifiable and supported by documentary evidence, in particular determined and recorded in accordance with the usual accounting practices of the productive project owner;
comply with applicable tax and social legislation, taking into account the privileges and other benefits granted to the project owner.

Types of eligible expenditure:

Expenses used to finance any activitý related to production and sales, such as:
- Cost of sales (CPV)
- Salaries
- Overheads
Companies must include an audit of project-related expenses in their project budget. Terms of reference for the audit will be provided by LuxDev.
Coverage through co-financing: Max 120,000 EUR value of co-financing
Investments that enable a strengthening of production capacity, productivity, competitiveness, diversification and quality:
- infrastructure – creation, rehabilitation, extension.
- equipment – acquisition, installation and commissioning.
- intangible assets – acquisition or subscription to databases, software and search algorithms, etc.
If co-financing is used for acquisitions, they may not be resold within 3 years of the end of the co-financed project.
Coverage through co-financing: 50% cost coverage, up to a maximum of 30% of the total project budget |Max 120,000 EUR value of co-financing
The project owner’s intangible needs (excluding investments) that help guarantee the “proper set-up” of the activity, its competitiveness and its sustainability, in particular:
- technical and accounting training.
- consulting and technical assistance:
  - consultancy/industry expertise, market access, pricing strategy, certifications, licenses and standards.
- development of business plans, financial management, digitization, human resources management and training, development of a results/impact management strategy and plan, etc.
  - management tools, accounting.
  - customer research/prospecting/access to networks.
  - certification fees.
  - costs related to the intellectual property of a product or service owned by the project leader.
A non-exhaustive list of experts and consultants identified by LuxDev in the various fields mentioned above will be provided to the selected companies.
Coverage through co-financing:100% cost coverage, up to a maximum of 20% of the total project budget

LuxDev co-financing up to 70% of total project budget LuxDev co-financing capped at min 50,000 and max 140,000 EUR

What is co-financing, and are there any rules to follow?

Co-financing is a direct financial contribution in the form of a donation or non-commercial payment to encourage companies to propose initiatives that aim to achieve specific impact results in line with the objectives set out in the call for projects. Co-financing can only be used when the initiative originates from the private sector and the results of the action financed are the property of the recipient of the co-financing;

Co-financing is subject to the non-profit rule. This means that on the one hand, co-financing may not have the purpose or effect of generating a profit from the project, and on the other, the creation of reserves is not permitted through the project. Any profit margins obtained as a result of setting up the co-financed project and collected during project execution must be reinvested in project execution;

Double-funding of project costs and expenditure on actions that took place before a co-financing agreement was signed are not permitted (principle of non-cumulative allocation and non-retroactivity).

In what currency will the co-financing be paid?

Selected companies will sign a co-financing agreement with LuxDev specifying the amount of the grant in euros, and payments will be made in EUR.

What expenses are not eligible?

Ineligible expenses are: costs incurred outside the project period, as specified in the co-financing agreement, dividends paid by the company, debt and debt-related costs, interest rates, bank charges and exchange losses, costs associated with developing the project.