Gruia Dufaut

NEW MINIMIS AID SCHEME FOR SMES

NEW MINIMIS AID SCHEME FOR SMES

Last updated: 19 April 2017


The difficult access of small and medium-sized enterprises (“SMEs”) to financing in Romania is the greatest concern for entrepreneurs and largely accounts for their low impact on the country's economy. In view of this funding gap, the authorities adopted a new minimis aid scheme for SMEs under Regulation (EC) no. 2.400/1207, published in the Official Journal no. 226/03.04.2017.

These minimis aids are granted in the form of uncapped portfolio guarantees under the Operational Program "Small and Medium-sized Enterprises Initiative" (POIIMM).

This scheme aims at facilitating SMEs' access to financing under more advantageous conditions (lower interest and fees, longer credit periods) and it will be applicable from the date of its publication in the Official Journal and until 31 December 2020. The difference between standard interest and SME interest for credit risk is an economic benefit granted to these companies in the form of minimis aid.

BENEFICIARIES

The beneficiaries of the minimis aid scheme are small and medium-sized enterprises which cumulatively fulfill the following conditions:

a) Their annual average number of employees is inferior to 250;
b) Their net annual turnover is under EUR 50 million (equivalent in Lei) or they hold assets with a total value does not exceed the equivalent in Lei of EUR 43 million, in accordance with the latest approved annual accounts.

ACTIVITY SECTORS THAT BENEFIT FROM THIS SCHEME


This minimis aid scheme grants aid for almost all the sectors of activity mentioned in the CAEN rev. 2 (Classification of Activities in the National Economy "CAEN", the equivalent of the French Codes APE, NAF), except for certain activities, such as: production and marketing of tobacco, weapons and ammunition, nuclear energy or real estate development, financial activities, real estate development activities, casinos and any equivalent businesses, online gambling and online casinos etc.

The following sectors are no longer eligible: fish farming and aquaculture, primary production of agricultural products, processing and marketing of agricultural products, in some cases.

Companies which carry out activities in both eligible sectors and in non-eligible sectors may be eligible for funding for the eligible sectors provided that they submit, together with the financing application, the accounting documents proving the separation of these activities: eligible and non-eligible.

In addition, for companies that perform transport of goods for third parties or against payment, the minimis aid granted may not be used for the purchase of vehicles intended for the carriage of goods by road.

ELIGIBILITY CONDITIONS

In order to benefit from this minimis aid scheme, beneficiaries must fulfill several conditions cumulatively, including:

  • They must not be subject to insolvency proceedings;

  • They must have a viable economic potential and be financially healthy;

  • They must be registered and operate in Romania;

  • They must not carry out economic activities in non-eligible activity sectors;

  • They must have paid all their taxes and social security contributions;

  • They must not be subject to a decision for the recovery of a State aid/minimis aid.


    AMOUNT OF THE MINIMIS AID


    Under the scheme, the minimis aid is granted in the form of an interest subsidy.

    The total amount of minimis aids granted may not exceed the equivalent in Lei of EUR 200,000 for a period of three consecutive financial years. The total value of the minimis aid for SMEs engaged in road transport of goods for third parties or against payment may not exceed the equivalent in Lei of EUR 100,000, for a period of three consecutive financial years.

    The authority that manages the scheme is the Ministry of Regional Development, Public Administration and European Funds, by the Management Authority for the Operational Program "Small and Medium-sized Enterprises Initiative". The total value of the minimis aid scheme is the equivalent in lei of 93 million Euros, divided over four years, namely: 20 million Euros in 2017, 30 million Euros in 2018, 15 million Euros in 2019 and 28 million Euros in 2020.


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