Rural Development Program (ELR)
Grants for sustainable investments in rural regions of Baden-Württemberg focusing on housing, basic services, employment, and community facilities. A multi-stage process through the municipalities with annual submission by September 30.
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Grant criteria
Funding objective
Support for sustainable, structural improvement measures in rural areas of Baden-Württemberg, focusing on the funding priorities of housing, basic services, employment, and community facilities.
Eligible expenses
- Construction measures (new construction, conversion, modernization)
- Machinery and operating equipment
- Site preparation of properties
- Acquisition of land and buildings (appraisal required)
- Own contributions
Non-eligible expenses
- Rental apartments in new construction projects
- Acquisition of photovoltaic systems
- Inventory and operating supplies
- Investments in vehicles with road traffic approval
Eligible to apply
- Companies
- Individuals
- Public Institutions
Funding requirements
- SMEs according to the EU definition with fewer than 100 employees
- Project start only after approval
- No majority shareholding (≥25%) by third parties
Documents required for application
- Financing confirmation from the house bank
- Project description (ELR form)
- Cost and financing plan
- Valuation report for real estate acquisition
- Building permit
- De minimis declaration
Evaluation criteria
- Contribution to internal development and strengthening of town centers
- Sustainable structural improvement in rural areas
- Use of CO₂-binding building materials for climate protection
Description
The Rural Development Program (ELR) in Baden-Württemberg supports innovative and sustainable investments in rural communities. The goal is to strengthen village centers and secure decentralized infrastructure in the funding priorities of housing, basic services, employment, and community facilities. Medium-sized enterprises, private landlords, and municipalities can receive grants ranging from 10% to 70% of eligible expenses. Funding is provided for construction measures (new construction, conversion, modernization), machinery and operational equipment, site development of plots, as well as the acquisition of buildings (with valuation report). Photovoltaic systems, land acquisition costs without valuation report, vehicles with road traffic approval, and rental apartments in new construction projects are not eligible for grants. The funding rates depend on company size and aid relevance: small and medium-sized enterprises with fewer than 100 employees can apply for aid under the EU General Block Exemption Regulation, while micro-enterprises and projects without aid relevance fall under the de minimis regulation.
Applications are submitted through a multi-stage process: municipalities submit the municipal admission application including project descriptions to the responsible regional council by September 30. After planning by the Ministry of Food, Rural Areas and Consumer Protection, companies can submit their grant applications to the L-Bank. Required documents include, among others, financing confirmation from the house bank, detailed cost and financing plans, project descriptions, and in case of property acquisition, a valuation report. De minimis declarations ensure compliance with EU aid limits. Through selection and approval, structural improvement measures in village centers are actively supported to strengthen sustainable housing, future-proof jobs, and local basic services throughout the rural area.
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