The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

25 lower inner ceilings applicable to agricultural production and fishery activities). 83 The aid ceiling applies on a cumulative basis, i.e. aid grantors must take into account any other aid the beneficiary undertaking has received as 3.1 TF aid to date to determine whether the new 3.1 TF award will fit under the cap. 84 The cap can be “cleansed” from past 3.1 TF aid if the beneficiary repays the aid previously used. 85 3.1 TF aid can be granted in a number of forms, including direct grants, tax and payment advantages, repayable advances, guarantees, loans and equity. Flexibility is combined with simplicity if 3.1 TF aid is granted in various forms: the amount of aid is always the “nominal value” of the instrument for the purpose of determining whether the overall cap (generally, 1.8 million euros) would be exceeded with the new aid. 86 This means that a direct grant of 10,000 euros, for the purposes of the overall aid ceiling, is “worth” the same as a 10,000-euro loan or a guarantee on a 10,000-euro loan. 3.1 TF aid already granted can also be converted into other forms of 3.1 TF aid without having to account for it as new aid. 87 There are few limitations to 3.1 TF aid in State aid rules; Member States can define the terms of aid, including the exact terms of tax advantages, direct grants, guarantees and loans (e.g. they can grant “interest free” loans or guarantees guaranteeing the full loan, which is exceptional in State aid). One constraint is the general exclusion of undertakings in difficulty 88 on 31 December 2019. An exception applies to micro and small enterprises, which are eligible for aid under 3.1 TF even if they were in difficulty on 31 December 2019 but, at the time of aid granting, they are not subject to a restructuring plan (due to restructuring aid), a collective insolvency procedure 89 under national law or they received rescue aid which has not yet been repaid (if a loan) or has not yet expired (if a guarantee). 90 83 Points 22(a) and 23(a) of the Temporary Framework. 84 Points 22(a) and 23(a) of the Temporary Framework. 85 Footnote 19 of the Temporary Framework. 86 Points 22(a) and 23(a) of the Temporary Framework. 87 Point 23ter of the Temporary Framework. 88 Point 22(c) of the Temporary Framework. The definition of undertakings in difficulty is included in Article 2(18) of the General Block Exemption Regulation. 89 Procedures according to Annex A of regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings, OJ L 141 5.6.2015 90 Points 22(c), 22(c- bis ), footnotes 21 and 22 of the Temporary Framework.