Funds worth 30 million euros for SMEs

The Finance Ministry has signed a 30 million-euro contract for the “Small and Medium-sized Enterprises (SME) Financing” component within RICOP programme, with the first financing applications scheduled for assessment by the end of the year.

The selected small and medium-sized enterprises will be granted non-reimbursable funds worth between 10,000 and 300,000 euros to make investments in the areas affected by the shutdown or restructuring of state-owned companies.

The programme aims at 17 counties in Romania and plans to create 10,000 new jobs.

“The funds granted by RICOP programme will bring a vital capital inflow to the small entrepreneurs in the areas that were socially affected by the economic restructuring,” Finance minister Mihai Tanasescu, who is also in charge with the programme co-ordination, maintained.

The fund worth 30 million euros will be managed by a consortium headed by the Romanian Commercial Bank (BCR), which will assess the applications.

The Romanian Commercial Bank-BCR will launch awareness campaigns and will release requests for financing offers until the fund runs out of money. The first awareness campaign is scheduled to start early next year.

The non-reimbursable funds may provide up to 60% of the money needed to carry the project, while the recipients have to cover at least one half of their own contribution in cash.

Any kind of project investments in production and services, except for commerce activities, financial and banking speculations or those operations breaching the environment protection legislation, may be granted funds.

Moreover, this programme cannot finance the production of spirits with an alcoholic content higher than 15% or tobacco production.

One of the most important eligibility criteria is to have a viable business plan through which the project may generate profit and create permanent new jobs over the next three years.

The eligible enterprises will be Romanian legal persons, will have up to 249 employees and post turnover of up to 40 million euros or total assets worth up to 27 million euros.

If one of the shareholders in a company applying for the grant is an enterprise with more than 250 employees, it may hold up to 25% stake and voting rights in that firm. If the company has foreign capital, the Romanian shareholders will have to hold at least 20% of the share capital.

The counties where the projects may be carried are Vaslui, Bacau, Iasi, Neamt, Galati, Buzau, Braila, Arges, Dambovita, Teleorman, Dolj, Gorj, Olt, Valcea, Hunedoara, Brasov and Covasna.