New non-reimbursable grants have been approved!

Besides reimbursable financing provided under the IMM Invest Romania program, companies can now also benefit from non-reimbursable financing.

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Besides reimbursable financing provided under the IMM Invest Romania program, companies can now also benefit from non-reimbursable financing, which is regulated by emergency ordinance no. 130/2020 published on August 6.

We summarize below the main information regarding these grants.

Types of grants:

  • micro grants of a lump sum amount of EUR 2.000;
  • working capital grants in lump sum, up to a percentage of the yearly turnover;
  • grants for investments in production.

Who is it for?

  • Small and medium-sized enterprises (SMEs) – they benefit from all 3 forms of grant;
  • Authorized individuals, individual medical cabinets, NGOs with business activity – they benefit only from micro grants.

Characteristics of the 3 forms of support:

A. The micro-grants shall be awarded from non-repayable external funds and the beneficiaries shall have an economic activity in one of the fields of activity listed in Annex 1 to the GEO 130/2020, shall not have employees, or shall fulfil the following cumulative conditions:

  • have been in regular service for at least one calendar year before the date of the grant application, except for PFA/IMC for which the start of operations may have taken place by 1 February 2020;
  • have obtained a turnover in the financial year preceding the application for financing of at least the RON equivalent of 5.000 euros;
  • to maintain their activities for a period of at least six months after the form of support has been granted.

B. The working capital grants target beneficiaries affected by the spread of SAR-CoV-2 virus.

The amount of non-repayable external financing for working capital shall be as follows:

  • for SMEs with a turnover for the year 2019 of between EUR 5.000 and EUR 13.500, the grant amount shall be EUR 2.000;
  • for SMEs with a turnover exceeding EUR 13.500, the amount of the grant shall be set at 15% of yearly turnover and shall not exceed EUR 150.000.

Working capital grants shall be awarded mainly to SMEs in the fields of activity: restaurants, hotels, cafes, food industry, transport services, travel agencies, publishers/libraries/libraries, creative industries, as well as event organizations whose current activity was affected by the spread of SAR-CoV-2 virus or whose activity was prohibited or reduced by military ordinances during the emergency state.

The list of eligible areas of activity is set out in Annex 2 to the GEO 130/2020 (attached document).

Conditions to be fulfilled for beneficiaries:

  • obtained/obtain by 15 September an emergency certificate under the GEO 29/2020;
  • they have recorded operating profits in one of the last two financial years;
  • have a co-participation in the formation of working capital of at least 15 % of the value of the grant;
  • maintain or increase the number of employees, as compared to the date of application, for a minimum period of six months (except seasonal/day).

Note: These first two forms of support are allocated in the order of submission, subject to the eligibility criteria.
Following receipt of the aid, a report (3 and 6 months respectively) will be submitted periodically stating the use of the amounts corresponding to the intended uses of the order. The sums used for another purpose may give rise to the recovery of State aid together with the payment of accessories.

C. Investment grants are between €50.000 and €200.000 depending on the financing needs of the investment projects submitted. Investment grants shall not include own co-financing of beneficiaries set at a minimum of 15 % of the grant amount requested by beneficiaries in less developed regions and 30 % of the grant amount requested by beneficiaries in the Bucharest-Ilfov region.

The list of eligible areas of activity is set out in Annex 3 to the GEO 130/2020, and the selection criteria are set out in Annex 4 to the GEO 130/2020.

Conditions for the benefit of investment grants:

  • the existence of operational activity of at least one year prior to the application for funding;
  • the existence of operating profit from operating activities in one of the financial years over the two preceding years preceding the application for financing;
  • ensuring the sustainability of the project for a minimum of 3 years after the expiry of the project implementation period;
  • achieving a minimum of 50% of the planned revenues under the business plan in the first two years and the difference to the end of the period;
  • providing evidence of the reasonableness of costs for investments for which state aid is requested.

We are waiting for the Applicant Guide to appear for more details. Stay tuned! 🙂