Emergency Ordinance no. 130/2020 regarding measures for financial support from non-reimbursable external funds, related to the Operational Program Competitiveness 2014-2020 (POC 2014-2020), in the context of the crisis caused by COVID-19 (hereinafter “GEO 130/2020”) entered into force on August 6th 2020.
GEO 130/2020 provides the general framework for providing financial support from non-reimbursable external funds to certain categories of beneficiaries affected by the current economic crisis, or beneficiaries whose activity has been banned or restricted by military ordinances during a state of emergency or alert. The financial aid is granted as micro-grants, working capital grants and investment grants, as detailed below.
Micro-grants are one-time lump payments of EUR 2000, granted to certain beneficiaries. The total budget for micro-grants is EUR 100 million, of which 85% is allocated from the 2014-2020 POC budget, and 15% from the state budget.
Those who may benefit from a micro-grant fall under one of the following categories:
In order to benefit from this type of financial support, beneficiaries must cumulatively meet the following conditions:
2. Working capital grants
The grants for working capital are intended for SMEs whose activity has either been affected by the COVID-19 pandemic or has been banned or restricted by military ordinances.
The amount of the grant will differ depending on the beneficiary’s turnover, as follows:
In the case of related enterprises, if several applications are submitted, the cumulative grant may not exceed EUR 250,000. If one of the related companies does not meet the conditions to qualify as an SME, the grant may not exceed EUR 150,000.
The grant for working capital involves co-financing from the beneficiary, amounting to 15% of the requested sum.
In order to be eligible for this grant, the beneficiary must meet the following conditions:
The list of expenses for which the microgrant or working capital grants may be used, are: (i) expenditure on raw materials, materials or equipment; (ii) current or outstanding debts, including debts to utility providers, debts to the state budget; (iii) rental expenses; (iv) expenditure on the purchase of inventory items, etc.
3. Investment grants
The amount of the investment grants depends on the investment project and its financing needs. The grants range between EUR 50,000 and EUR 200,000. Elgible investments for financing refer to:
As is the case for working capital grants, investment grants shall also be co-financed by the beneficiary, in the amount of:
The conditions that the beneficiaries must fulfil are the following: