State aid rules

As a member of the EEA, Norway is subject to the same state aid rules as the EU. As a general rule, state aid is prohibited, but there are relatively extensive exemptions.

All support we provide must comply with state aid rules. These rules set out which activities are eligible for support, which costs associated with these activities may be covered in full or in part, and the maximum level of support (aid intensity) available for the various activities, among other provisions.

If state aid rules are breached, the state aid must be repaid. This can have serious consequences for your company, so we make sure that the aid is lawful before we approve it.

This guide explains:

1. The SME definition

2. General conditions for lawful state aid

3. The specific conditions that apply to each legal basis for aid

Here, the legal basis for aid means the relevant article applied in each individual case, for example the R&D article (Article 25) or the article on investment aid for SMEs (Article 17).

Please note that this text only outlines the main features of the regulations in a simplified form. When processing your case, we will assess state aid law based on our interpretation of the primary legal sources. You can find more details in our internal guide:

• Read the guide in Norwegian
• Read the guide in English

The references below to various chapters ('Chapter') refer to the internal guidelines.

State aid rules distinguish between small, medium-sized and large enterprises. Small enterprises have the greatest access to state aid, while large enterprises have the least. The maximum permitted aid rates are also highest for small enterprises and lowest for large enterprises. It is therefore essential to understand the criteria for classifying an enterprise as small or medium-sized.

The definition is based on

• number of full-time equivalents
• annual turnover
• annual balance sheet total

Use the figures from the company's latest publicly available annual accounts.

• fewer than 50 full-time equivalent employees, and
• has an annual turnover not exceeding EUR 10 million or a balance sheet total not exceeding EUR 10 million (the company may exceed either the turnover or balance sheet threshold, but not both).

• fewer than 250 full-time equivalents, and
• has an annual turnover not exceeding EUR 50 million or a balance sheet total not exceeding EUR 43 million (the company may exceed either the turnover or balance sheet threshold, but not both).

If your company owns 25 per cent or more of another company, or another company owns 25 per cent or more of your company, you must generally include a proportionate share or 100 per cent of the employee numbers and turnover or balance sheet totals of these 'partner/linked' companies when determining your company's classification.

If your company has partner enterprises and/or linked enterprises, classification can often be complex. For more details, see the EU user guide to the SME definition.

All funding from us must comply with state aid rules.

The General Block Exemption Regulation (GBER) forms part of the state aid rules and comprises a set of legal bases for aid (articles) that allow us to provide support to businesses in a range of circumstances.

The articles set out the specific conditions that apply to each legal basis for aid, and we may apply one or more articles in each case.