SMEs will receive up to 200.000 Euro funding for investments

The minimis aid scheme of 400 million Lei (100 million Euro) will be awarded to SMEs over a three year period, as non reimbursable funds in the amount of 100% of the total eligible costs approved for funding.

The aid must be within a maximum of 200.000 Euro, equivalent in lei, and 100.000 Euro for companies that work in the field of road transport, according to a draft government decision.

The scheme to issue funding agreements will be conducted this year until June 30, 2014 with the possibility of extension, and the payment of de minimis aid shall be made during 2014-2016, according to the annual budget allocated for the scheme. Authorities estimated that these funds will benefit about 1.000 SMEs.

Firms will receive these benefits if they commit that they will retain the existing employees until the completion of the investment and create five jobs, for 100.000 Euro grant and seven jobs for amounts between 100.000 and 200.000 Euro. Of these, at least two or three jobs must be given to people who had no employment contract in the last three months. Firms should maintain these positions three years after the completion of the investment.

In addition, SMEs must not have received minimis aid grants over a 3 year period (the current fiscal year and the previous two years), or if they have received, the amount should not exceed the limits mentioned.

The minimis aid shall be paid after the eligible costs are approved through the arrangements for financing and verification by the employees of the Ministry of Finance.

For industrial constructions, the maximum eligible costs are determined based on cost standards so that the beneficiary company cannot settle overstated expenses.

The minimis aid is in the form of grants from the state budget through the Ministry of Public Finance.

SMEs are defined as companies with an average number of staff up to 249 employees reported in the previous year and a net annual turnover of 50 million Euro.

The Decision No. 274 of May 15, 2013 regarding the minimis aid scheme for investments made by SME's is available here(only in Romanian).