Category: Covid-19 support measures
Guarantee schemes and liquidity insurance instruments – b) Indirect support: Guarantee programs for company’s liquidity insurance
1.Guarantee scheme regarding commercial credit insurance (supplier) – stimulating the risk exposure of insurers and facilitating companies’ access to commercial credit insurance
- Objective: in the context of the economic crisis caused by the COVID-19 pandemic, in the purpose of avoiding a commercial credit crunch, a scheme of guarantee by the Ministry of Public Finance is established (acting as a supplier of state aid), of commercial credits insured by the customers’ insurers
- Value paid by the Ministry of Public Finance in case of a loss: 80% of the amount not collected / not recovered by the insurer
- Guarantee ceiling:1.000.000.000 RON
- Beneficiary: companies in the credit insurance sector based in Romania and branches / subsidiaries of foreign commercial credit insurers.
2. Guarantee program with Factoring and Discounting of trade bills – granting guarantee facilities by the state for short-term loans granted to SMEs whose value is established by correlating with the value of factoring type financing / discounting operations
- Objective: program of commercial credit guarantee, for regressive factoring financing (with recourse) and discounting trade effects
- Guaranteed financing value: max. 500.000 RON/assigned debtor
- Guarantee ceiling:1.500.000.000 RON for factoring, 1.500.000.000 RON for discounting
3. Guarantee program for equipment and machinery Leasing – leasing guarantee for SMEs that opt for non-bank financing
- Objective: guarantees may be granted in the name and on behalf of state, associated with leasing products granted by leasing companies
- Guaranteed financing value: max. 5.000.000 RON/company
- Guarantee ceiling:1.500.000.000 RON
- Beneficiary: the areas of activity eligible under the Program are as follows: agriculture, forestry and fishing; industry quarrying; manufacturing industry, with except for the manufacture of beverages, the manufacture of tobacco products;
Guarantee schemes and liquidity insurance instruments – a) Loan guarantee programs for working capital and investments
1. IMM INVEST program for guaranteeing loans for working capital and investments for SMEs
- Credit guarantee: 80% or 90% of investments and working capital loans/credit lines contracted by micro, small and medium-sized company
- Interest subsidies on loans: 100% until the end of the year 2020
- Guarantee ceiling:15.000.000.000 RON
- Number of beneficiaries:40.000 of SMEs
- Availability: 36 months for working capital loans, 72 months for investments loans
- Beneficiaries: micro, small and medium-sized enterprises and small enterprises with average capitalization
2. State guarantees for lending to LARGE COMPANIES (turnover higher than 20,000,000 RON) for working capital and investments
- Credit guarantee: max. 90%, for new loans or loans already granted by commercial banks for investments and/or for financing current operations
- Guarantee ceiling: 8.000.000.000 RON
- Number of beneficiaries: 600 big companies
- Availability: the period of loans cannot exceed 6 years
- Beneficiaries: large companies with turnover higher than 20.000.000 RON and over 250 employees
Measures:
Measure A
Granting three categories of guarantees, in the name and on behalf of the state, for companies affected by COVID-19 pandemic, covering the need for guarantee in the proportion of a maximum of 90%, for new or already granted loans by banks for investment and / or to support the current activity of beneficiary
Measure B
Consists of providing funding with the State aid component on behalf of the state, for affected companies of the COVID-19 pandemic, in order to achieve investments and / or to support the current activity.
Measure C
Consists in granting products with a de minimis component, respectively the compensation of interest on ongoing loans, subsidizing interest on new loans and guarantee ceilings with component of de minimis for working capital loans granted by commercial banks.
Measure D
Consists in granting credits, guarantees and insurance under market conditions in the name and account of the state. Will be used in this respect the current standard products offered by EximBank.
Eligibility criteria:
- The company is a legal persons of private law, established on the basis of the Companies Law no. 31/1990, republished, with subsequent completions and modifications;
- Falls into the category of SMEs that have turnover over 20 million lei in the year 2019 or falls into the category of large enterprises
- No decisions were issued against for recovery of state aid or in the case in which such decisions have been issued they were executed, according to the legal provisions in force
- The company Is not in the procedure of forced closure, operational closure, dissolution, liquidation or special administration and it is not subject to courts decision to open a procedure of preventive settlement or insolvency, at its initiative, or at the request of a third creditor;
- The company is not in dispute with EximBank
- The company is not in litigation, as a defendant, with Ministry of Public Finance
- The company has no overdue budget obligations
Financing programs for new investments and for the relocation of companies in Romania
1. State aid scheme for new investments (greenfield) (stimulating and attracting new investments with major impact on the economy)
- Objective: stimulating and attracting new investments with major impact on the economy by financing projects of investments, including greenfield investments
- Value: max. 37.500.000 EURO/ investment
- Budget: 1.500.000.000 EURO/year until 2023
- Financed expenses: investment projects, including greenfield investments
- Beneficiaries: Enterprises that achieve new investment projects, investments of Financing programs for new investments and for the relocation of companies in Romania (greenfield type), investments with major impact in economy
Categories of expenditure financed:
- Building new constructions; rental of existing buildings
- Acquisition of tangible assets (installations new techniques, machines and equipment);
- Acquisition of intangible assets
- Licenses, know-how or other intellectual property rights
2. State aid scheme to support investments promoting regional development (stimulating and attracting new investments with major impact on economy)
- Objective: Granting state aid under the form of grants for regional development achieved by making investments that lead to the creation of new jobs
- Value: max. 37.500.000 EURO/ investment
- Budget: 450.000.000 LEI/year until 2025
- Financed expenses: investments that lead to the creation of new jobs
- Beneficiaries: enterprises in all sectors of activity, except those mentioned in Regulation (EU) no. 651/2014 (steel sector, coal sector, construction sector naval, synthetic fibers sector, etc.)
Support Grants for innovative entrepreneurial initiatives and digitalization of companies
1. Grants for digitalization of SMEs
- Objective: supporting the activities having as a goal the digitization of companies' activity
- Value: 30.000 EURO/ project – 100.000 EURO/ project
- Budget: 150.000.000 EURO
- Available funds: 130.000.000 EURO
Financed expenses: IT equipment, use of electronic signature, connection broadband, software purchase, automation of industrial equipment, automation of technological flows etc.
2. Financing digital training programs for employees, for SMEs
- Objective: providing resources for large and medium-sized companies that invest funds in the process of educating the workforce to use industrial equipment complexes (robots, automated technology lines, etc.), but also for SMEs that invest funds in the human resource for basic knowledge in the field of using software
- Value: 30.000 EURO/ project – 100.000 EURO/project
- Budget: 30.000.000 EURO
Grant for increasing the competitiveness of SMEs
1. Grants for increasing the competitiveness of SMEs (allocating additional funds to the Regional Operational Program – POR – Priority Axis 2.2 “Supporting the creation and expansion of advanced production capacities and development of services”)
- Objective: improving competitiveness economic growth by increasing productivity work in SMEs
- Value: 200.000 – 1.000.000 EURO
- Budget (initial allocation and subcontracting): 450.000.000 EURO
- Available funds: 130.000.000 EURO
- Beneficiaries: SMEsin the fields identified in the Strategy National Competitiveness and Plans Regional Development
Categories of expenditure financed:
Regional state aid:
- Construction, modernization, expansion the production / service space;
- Tangible, intangible assets, including online trading tools
Minimis aid:
- Implementation of the certification process / recertification of its products, services or different specific processes, systems quality management, environment or health
- Internationalization (participation at international fairs outside Romania, trade missions, exhibitions, quality of exhibitor).
2. Grants for SMEs development by financing large investments (in increasing productivity through the Regional Operational Program – POR )
- Objective: improving competitiveness economic growth by increasing productivity work in SMEs
- Value: 2.000.000 – 6.000.000 EURO
- Budget (initial allocation and subcontracting): 550.000.000 EURO
- Available funds: 130.000.000 EURO
- Beneficiaries: SMEs in the fields identified in the Strategy National Competitiveness and Plans Regional Development
Categories of expenditure financed: Construction, modernization, expansion the production / service space; tangible, intangible assets.
Support grants for restarting economic activities, working capital and investments
1. SME grants for restarting economic activities in HORECA, Tourism, Transport and Event industries
- Objective: ensuring the working capital necessary to resume the activity for SMEs affected by the coronavirus crisis in areas such as HORECA, tourism, transport, event organization.
- Value: max. 125.000 EURO
- Budget: 350.000.000 EURO
- Beneficiaries: SMEs and entities assimilated to SMEs in the fields of activity HORECA, tourism, transport services, as well as event organizations whose activity has been affected in the context of Covid-19
Eligibility criteria:
- To have the activity stopped or interrupted and the company to register a decrease in turnover by at least 30% compared to the previous period of the previous year in one of the months of March 2020 compared to March 2019, April 2020 compared to April 2019 or May 2020 compared to May 2019
- To record a profit or, as the case may be, a benefit in one of the last two financial years
- To be part of the SME category after verifying the status of legal enterprise
- Have no overdue budget obligations
Categories of expenditure financed: stocks of raw materials, consumables, merchandise, payment of debts to suppliers (including utilities), other debts to suppliers in the current activity, expenses with equipment, machinery, technologies, independent endowments, rent debts, debts on the purchase of services and repairs, except for consultancy services, expenses for the purchase of inventory items.
2. SME Grants for Investments and economic reconversion
- Objective: Grants for the reconversion of activities for SMEs, but also for making necessary investments in the economy
- Value: 50.000 – 200.000 EURO
- Budget: 550.000.000 EURO
- Financed expenses:: production, purchase of equipment, machinery, technologies
- Funded fields of activity: healthcare, pharmaceutical, food, automotive, IT, energy, construction, transportation, tourism, clothing
Eligibility criteria:
- Operational activity of at least 1 year
- Operating profit in one of the last two financial years
- To ensure the sustainability of the project for at least 3 years after the expiration of the project implementation period;
- To achieve at least 50% of the value of the planned revenues within the cost-benefit analysis in the first two years of activity after the expiration of the project implementation period.
- Have no overdue budget obligations
Categories of expenditure financed: expenses with execution / acquisition of constructions, acquisition of with equipment, machinery, technologies, independent endowments, office furniture and specific furniture, expenses with the acquisition of plots of land max. 10% of the project value, expenses with consulting services, design services, project management, technical assistance, site management, expenses for systematization and land use planning, environmental expenses, utility network connection related expenses, accessibility expenses, promotion expenses, participation in fairs, events, conferences, expenditure on studies, intellectual property rights expenses, any other categories of expenditure that are related to the investment project for the expansion of existing production capacity as well as for the expansion of service
3. Aid scheme for RENT for trade and services affected Covid-19
- Objective: Granting non-reimbursable aid to economic operators whose activity has been affected by the Covid-19 pandemic, tenants of large shopping centres, for financing rents
- Value:the value of the RENT/ beneficiary / month, for a period of 3 months (emergency period)
- Budget: 160.000.000 RON
- Financed expenses:: the cost of rents for the period in which the conduct of business or the services provided was affected during the state of emergency or alert
- Beneficiaries: tenants of large shopping centres
National Investment and Economic Recovery Program
National Investment and Economic Recovery Program
Guarantee schemes and liquidity insurance instruments – b) Indirect support: Guarantee programs for company’s liquidity insurance
These programs aim to stimulate the risk exposure of insurers and facilitate companies’ access to commercial credit insurance, provide guarantee facilities with Factoring and Discounting of trade bills and also provide leasing guarantee for SMEs that opt for non-bank financing
No Comments
Guarantee schemes and liquidity insurance instruments – a) Loan guarantee programs for working capital and investments
These programs provide state guarantees in proportion of 80% – 90% of investments and working capital loans/credit lines, for micro, small, medium-sized and large enterprises
No Comments
Financing programs for new investments and for the relocation of companies in Romania
These State aid schemes aim to stimulate new investments with major impact on the economy by financing projects of investments, including greenfield investments and also to stimulate regional development achieved by making investments that lead to the creation of new jobs
No Comments
Support Grants for innovative entrepreneurial initiatives and digitalization of companies
The objective of this program is to provide grants for activities having as a goal the digitization of companies’ activity, for companies that invest funds in the process of educating the workforce to use industrial equipment but also in training employees digital skills
No Comments
Grant for increasing the competitiveness of SMEs
These structural funds are available from the 2014-2020 EU allocation, which are still available for approval until the end of 2020, unless an extension is given.
The objective of this program is to provide grants for increasing the competitiveness of SMEs by increasing productivity work and to support SMEs development by financing large investments.
No Comments
Support grants for restarting economic activities, working capital and investments
The objective of this program is to provide grants for restarting economic activities in the field of HORECA, tourism, transport and event industries, for investments and economic reconversion of SMEs, as well as financing rents for tenants of large shopping centers, during the state of emergency or alert
No Comments
Fiscal measures to protect the company’s Cash Flow
Facilities, conditions, documentation required and eligibility criteria; tips for a successful application
