The two calls for financing projects for micro-enterprises and SMEs launched under Regional Operational Programme (ROP) 2.2 are to continue amid the COVID-19 pandemic, but it would be preferable if the deadline for the submission of applications were to be extended.
Small and medium-sized enterprises (SMEs) in Romania, which are going to be severely affected by the coronavirus crisis, are able to access non-reimbursable financing of between 200,000 euros and one million euros, depending on the size of the business in question and the type of investment envisaged. However, they must make sure to include with their applications a business plan specifying estimated income from the planned investment, together with a series of declarations and documents issued by the authorities, not all of which are easily obtainable online.
“In our opinion, in the current circumstances of the Covid-19 pandemic, it is advisable that the application submissions deadline be extended, given the requirement to submit documents whose procurement involves contact with authorities and given that not all authorities are able to issue official documents electronically”, explains Johannes Becker, partner at TPA Romania and a specialist in European funds.
The first call under ROP 2.2 was launched on 24 December 2019 and was aimed at SMEs in the North-East and West regions of the country. It closes today, 24 March 2020.
The second call was launched on 2 March of this year and is open to SMEs in the South East, South Muntenia and South West Oltenia regions. Under this second call, entrepreneurs can apply for financing for their investment projects during the period 4 May to 4 June 2020.
How will the money be allocated between the three regions?
- South East (Braila, Buzău, Constanța, Galați, Tulcea, Vrancea counties) – EUR 27.9 million
- South Muntenia (Argeș, Prahova, Dâmbovița, Teleorman, Giurgiu, Ialomița and Călărași) – EUR 38.7 million
- South West Oltenia (Dolj, Gorj, Mehedinți, Olt and Vâlcea) – EUR 18 million
As before, applications can only be submitted through the MySMIS application.
As part of the ROP 2.2 – SMEs financing line, small and medium-sized companies in many different fields can obtain non-reimbursable funds for the purposes of building or expanding their production or service spaces, as well as equipping them with tangible (equipment and machinery) and intangible assets (patents, but also software licenses and other similar assets), including online marketing tools.
Moreover, contractors will be able to use these funds to finance the cost of certification/recertification of products, services, quality management systems and other such certifications, as well as their participation at international fairs as exhibitors.
Johannes Becker also points out that the European Commission recently decided to relax the state aid rules to support companies in the Member States affected by the COVID-19 crisis, but also the economy in general.
Indeed, the Commission has adopted a temporary framework to allow Member States to grant five different types of state aid:
- direct grants, selective tax benefits and advance payments
- state guarantees for loans taken out by companies from banks
- subsidised public loans for companies for both working capital and investments
- guarantees for banks that direct state aid to the real economy
- provision of short-term export credits