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AGVO (General Block Exemption Regulation): what it is, why it controls your grant

EU Regulation 651/2014. The rulebook that lets German funders pay grants without per-case EU approval - and the source of every funding-rate cap you'll meet.

AGVO
EU state aid
Finn Glas
Finn GlasCo-Founder + Engineering
·May 15, 2026·
2 min read

Key takeaways

EU regulation 651/2014 ('Allgemeine Gruppenfreistellungsverordnung' in German).
Lists conditions under which state aid is allowed without per-case EU notification.
Most German R&D + innovation grants (ZIM, KMU innovativ, IGP, BayTOU, EXIST Forschungstransfer) operate under specific AGVO articles.

What AGVO is

Without AGVO, every state-aid decision would need EU-Commission pre-approval - a process that takes 6-18 months and that no operational grant programme can survive. AGVO is the EU's pre-approved rulebook: 'if your aid fits these categories with these rates and caps, you don't need to ask Brussels each time'. German funders draft their Förderrichtlinien to fit explicit AGVO articles so they can disburse quickly.

The categories that matter for startups

Five AGVO categories drive most German startup funding: Article 25 (R&D aid), Article 28 (innovation aid for SMEs), Article 22 (aid to start-ups), Article 14 (regional investment aid), and Articles 31-34 (training, advisory, environmental). Each has its own definition of qualifying costs, max aid intensity (percentage), and absolute cap. The funding-rate caps you see in programmes (50% for SMEs in cooperation projects, 60-65% with bonus, 100% for research institutes) come directly from these articles.

Article 25 (R&D): caps from 25% (experimental development at large companies) up to 100% (fundamental research).
Article 22 (start-ups): up to €0.4M / €0.8M / €1.2M depending on activity for newly-founded companies.
SME bonus: an extra 10-20 percentage points on top of the base rate for small + medium enterprises.

How this maps to specific German programmes

ZIM: AGVO Article 25 R&D + Article 28 innovation aid. KMU innovativ: AGVO Article 25 R&D with industry/research-institute splits. IGP: Article 25 R&D + Article 28 innovation aid. BayTOU: Article 25 R&D with Bavarian-specific Förderhöchstgrenzen. EXIST Forschungstransfer Phase II: Article 22 start-up aid + Article 25. Knowing which AGVO article underlies a programme tells you (a) what counts as qualifying cost, (b) what the absolute cap is, and (c) whether you can stack with another article-25 programme without bumping the limit.

FAQ

Frequently asked

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Finn Glas

Written by

Finn Glas

Co-Founder + Engineering

Finn is one of the Co-Founders. He owns the engineering side, the infrastructure, and most of the late-night fixes that ship before anyone notices.

finn.glas at aicuflow dot comLinkedInWebsite