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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:
as aid co-financed by the EAFRD; or
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.
[F1The business plan shall have a maximum duration of five years.]
7.[F2The aid shall be paid in at least two instalments.]
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.
Textual Amendments
F1 Inserted by Commission Regulation (EU) 2019/289 of 19 February 2019 amending 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 Treaty on the Functioning of the European Union (Text with EEA relevance).
F2 Substituted by Commission Regulation (EU) 2019/289 of 19 February 2019 amending 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 Treaty on the Functioning of the European Union (Text with EEA relevance).