Rural Payments and Services

Legal basis

This scheme has been notified to the European Commission under Commission Regulation (EU) No 702/2014, declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the TFEU.

The scheme number will be provided here when available.The legal basis is Section 2 (2) of the European Communities Act 1972.

Articles being utilised under the scheme

Information below details the Articles of Regulation No 702/2014 utilised by the LEADER scheme. Awards are granted subject to assessment against the detailed conditions of the Regulation.

Article 45 - Business start-up aid for non-agricultural activities in rural areas

1. Business start-up aid for non-agricultural activities in rural areas granted to SMEs shall be compatible with the internal market within the meaning of Article 107(3)(c) of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in paragraphs 2 to 9 of this Article and in Chapter I.

2. The aid shall: (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:

• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i);

and (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

3. The legal basis for the aid shall specify that the aid shall not be put into effect before the approval of the relevant rural development programme by the Commission.

4. Aid shall be granted to the following categories of beneficiaries:

• (a) farmers or members of a farm household in rural areas diversifying into non-agricultural activities;
• (b) micro and small enterprises in rural areas; and
• (c) natural persons in rural areas.

5. Where the member of a farm household referred to in paragraph 4(a) is a legal person or a group of legal persons it must exercise an agricultural activity on the farm at the time of the submission of the application for the aid.

6. The aid shall be conditional on the submission of a business plan to the competent authority of the Member State concerned. The implementation of that business plan shall start within nine months from the date of the decision granting the aid.

The business plan shall describe the following:

• (a) the initial economic situation of the beneficiary;
• (b) milestones and targets for the development of the new activities of the beneficiary;
• (c) details of the actions required for the development of the activities of the beneficiary, such as details of investments, training, advice.

7. The aid shall be paid in at least two instalments over a maximum period of five years.
The instalments may be degressive.

The payment of the last instalment shall be conditional upon the correct implementation of the business plan referred to in paragraph 6.

8. Member States shall define the amount of aid taking into account the socioeconomic situation of the area covered by the rural development programme.

9. The aid shall be limited to EUR 70 000 per beneficiary.

Article 47 - Aid for knowledge transfer and information actions in favour of SMEs in rural areas

1. Aid for knowledge transfer and information actions in favour of SMEs in rural areas shall be compatible with the internal market within the meaning of Article 107(3)(c) of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in paragraphs 2 to 7 of this Article and in Chapter I.

2. The aid shall:

(a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:

• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i);

and (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

3.The aid shall cover vocational training and skills acquisition actions, including training courses, workshops and coaching, demonstration activities and information actions. Aid to demonstration activities may cover relevant investment costs

4. The aid shall cover the following eligible costs:

(a) the costs of organising and delivering the knowledge transfer or information action;

(b) in case of demonstration projects related to investments:

• (i) the construction, acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10 % of total eligible costs of the operation concerned;
• (ii) the purchase or lease purchase of machinery and equipment up to the market value of the asset;
• (iii) general costs linked to expenditure referred to in points (i) and (ii), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under points (i) and (ii) is incurred;
• (iv)acquisition or development of computer software and acquisitions of patents, licenses, copyright and, trademarks;

(c) costs for travel, accommodation and per diem expenses of participants.

5. The aid shall not involve direct payments to the beneficiaries. That aid shall be paid to the provider of the knowledge transfer and information actions.

Bodies providing knowledge transfer and information actions shall have the appropriate capacities in the form of staff qualifications and regular training to carry out those tasks.

6. The aid shall be accessible to all those eligible undertakings active in the rural area concerned, based on objectively defined conditions.

7. The aid intensity shall be limited to the following rates:

• (a) 60 % of the eligible costs in the case of medium-sized enterprises;
• (b) 70 % of the eligible costs in the case of micro and small enterprises.