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A support programme for small and medium-sized enterprises has been approved

In the context of the new economic crisis, the support programme for small and medium-sized enterprises, which aims to grant state facilities for loans granted by credit institutions, was approved. This Regulation was published in the Official Journal, on 4 April, through OUG No. 42.

What do these structures refer to?

  • Facilities in the form of guarantees of up to 80 % or 90 % of the amount of financing, relating to loans for one or more investment or working capital loans necessary for the day-to-day business. The cumulative value of the financing guaranteed by the State cannot exceed 10.000.000 lei. The duration of the financing for investment loans is 72 months and for working capital loans is 36 months and may be extended to a maximum of 72 months.
  • facility in the form of a grant, aid to cover part of the cost of credit (risk charge, management fee, interest on loans).

Credit categories to which aid may be applied:

  • Loans for investment or working capital financing, guaranteed up to 80%, the maximum amount of each loan granted to a beneficiary may not exceed 5000 lei for loans related to working capital, and 10,000,000 for investment loans.
  • Loans for the financing of working capital granted to a micro or small enterprise up to a limit of 90%. The maximum value of credit for micro-enterprises may not exceed 500,000 lei or 1,000,000 lei for small enterprises. In this case, interest on loans shall be subsidised at least until 31 December 2020.

The limits of the appropriations for both financing shall take maximum account of:

  • twice the amount of gross wage costs in 2019; or for enterprises formed after 1 January 2019, the estimated amount for the first two years of operation shall be taken into account;
  • 25% of net turnover, gross income or annual income rule for natural persons receiving income from self-employed persons for the year 2019;
  • an amount of its liquidity needs for the next 18 months, subject to the submission of supporting documents by the beneficiary.

What are the conditions under which companies can benefit from these facilities?

  • are micro, small and medium-sized enterprises engaged in economic activities which were not in difficulty on 31 December 2019, are not in insolvency, forced execution, dissolution, settlement or litigation as agreed with the Ministry of Finance;
  • does not assume outstanding liabilities on the payment of amounts due to the balance sheet;
  • not included in the remaining loans, is not subject to incapacity of issuing cheques;
  • provides guarantees to the credit institution and is eligible under the credit institution’s internal rules;
  • no other type of state aid was requested for the same eligible costs;
  • do not make available existing staff by 31 December 2020;
  • the amounts may not be used to refinance other outstanding loans;
  • small and medium-sized enterprises in the fields of gambling and betting, the production or marketing of weapons, ammunition, explosives, tobacco, alcohol, nationally controlled substances, plants, narcotic and psychotropic substances and preparations, research and protection activities.

Arrangements for granting the facilities:

The National Credit Guarantee Fund for Small and Medium-sized Enterprises (FNGCIMM) will publish on its website the arrangements for granting the facilities, the period during which applications may be submitted, as well as the annual budget, the date of its exhaustion and the documents necessary for its access.

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