FINANCING

Non-Reimbursable Financial Allocation (AFN) – maximum 200,000 lei/beneficiary, an amount that can represent maximum 95% of eligible expenses’ value (including VAT for non-payers) related to the project.

ELIGIBLE BENEFICIARIES

(1) Companies (micro-enterprises, small and medium-sized enterprises) can benefit from the provisions of the Program, which cumulatively meet, at the completion date of the registration form (Annex 1) and throughout the validity period of the financing agreement, the following eligibility criteria:

a) are registered in accordance with Law no. 31/1990 regarding companies, republished, with subsequent modifications and completions, or based on Law no. 1/2005 regarding the organization and functioning of cooperatives or based on Government Emergency Ordinance no. 6/2011 for the stimulation of establishing and developing micro-enterprises by business beginners, with subsequent modifications and completions;

b) are SMEs, according to the provisions of art. 2 and art. 4 para. (1) lit. a), b) or c) of Law no. 346/2004 regarding the stimulation of establishing and developing small and medium-sized enterprises, with subsequent modifications and completions, which transpose into national legislation Recommendation EC no. 361 of May 6, 2003, published in the Official Journal of the EU no. L124 of May 20, 2003 (having up to 249 employees and an annual net turnover of up to 50 million euros or total assets of up to 43 million euros, equivalent in lei).

c) are considered autonomous, related, partners enterprises;

d) have fully private share capital;

e) individuals who have the quality of associates/shareholders or administrators in several companies cannot apply under this Program except with one single company;

f) are registered with the Trade Registry Office, have their registered office/place of business and carry out their activity on the territory of Romania;

g) the CAEN Rev. 2 code for which financing is requested is eligible under the Program (Annex 1) and authorized until the moment of reimbursement request payment, according to art. 15 of Law no. 359/2004 regarding the simplification of formalities in the registration with the Trade Registry of natural persons, family associations, and legal persons, their tax registration, as well as the authorization of legal persons, with subsequent modifications and completions. Financing requests are made for a single CAEN code;

h) were set up by natural persons starting from January 1, 2020, inclusive;

i) do not have debts to the consolidated general budget, both for the registered office and for all workplaces, at the time of administrative and eligibility verification; Applicants with staggered debts are not eligible to access the Program.

j) (1) Have not exceeded the de minimis threshold of 200,000 euros over a period of three consecutive financial years for a single undertaking, as defined by Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid, with subsequent modifications and completions, and 100,000 euros over a period of three financial years for beneficiaries engaged in freight transport activities on behalf of third parties or for a fee. The thresholds apply regardless of the form of de minimis aid or the objective pursued and regardless of whether the aid is granted from state budget funds or from community funds.

(2) In case, by granting new de minimis aid, the maximum threshold mentioned in point j para. (1) is exceeded, the enterprise may benefit, if requested, from the provisions of this de minimis aid scheme only for that fraction of the aid which, cumulated with the rest of the de minimis aid received previously, does not exceed this threshold.

(3) In case of mergers or acquisitions, when establishing whether a new de minimis aid granted to a new enterprise or the enterprise acquiring exceeds the relevant threshold, all previous de minimis aid granted to all merging enterprises are taken into account. De minimis aid legally granted before the merger or acquisition remains legally granted.

(4) In case an enterprise splits into two or more separate enterprises, de minimis aid granted before the split is allocated to the enterprise that benefited from it, namely, in principle, to the enterprise taking over the activities for which the de minimis aid was used. If such allocation is not possible, de minimis aid is allocated proportionally based on the book value of the share capital of the new enterprises at the date the split takes effect.

(5) The minimis aid granted under this measure can be cumulated with minimis aid granted in accordance with Commission Regulation (EU) No. 360/2012, within the limit of the ceiling established in that regulation.

(6) Minimis aids can be cumulated with minimis aids granted in accordance with other minimis regulations up to the ceiling of EUR 200,000 (EUR 100,000 for enterprises engaged in road freight transport for hire or reward) equivalent in lei.

(7) For mergers and/or acquisitions that modify the control status, in case the value thresholds provided for in Article 12 of Competition Law No. 21/1996, republished, with subsequent amendments, are exceeded, they shall be notified to the Competition Council, and the implementation of the transaction of economic concentration shall only be possible after obtaining an authorization decision from the competition authority.

(8) The aspect may also concern the split transactions mentioned above, in case the resulting assets and/or enterprises with full functioning exceed the value thresholds provided for by Competition Law.

(9) Minimis aids do not cumulate with state aids granted for the same eligible costs or with state aids granted for the same financing measure through risk capital if such cumulation would exceed the relevant maximum intensity or value of the aid established for the specific conditions of each case by a regulation or decision of exemption by categories adopted by the Commission.

(10) Minimis aids that are not granted for or not related to specific eligible costs can be cumulated with other state aids granted under a category exemption regulation or a decision adopted by the Commission.

k) are not in a state of dissolution, judicial reorganization, liquidation, forced execution, operational closure, insolvency, bankruptcy, or temporary suspension of activity;

l) have not been the subject of a decision issued by the European Commission / AIMMAIPE / other state aid provider / Competition Council for the recovery of state aid/minimis aid, or if they have been the subject of such a decision, it has already been executed and the entire claim, with related penalties, has been recovered;

m) (1) create at least one full-time job, indefinitely, after the entry into force of the non-repayable financial assistance (AFN) agreement, and maintain the job occupied for at least 2 years from the date of AFN payment;

(2) In case the job(s) created under the scheme become vacant for various reasons or are suspended after their creation under the scheme, the beneficiary has a maximum of 45 days to fill the vacant job(s), maintaining the number and conditions thereof for which funding was received;

n) Ensure co-financing of at least 5% of the eligible project value, under the penalty of not granting AFN.

FINANCIAL AID TYPES

(1) The Program finances funding requests completed through the registration form (Annex 1), in descending order of the scores obtained, under the following conditions:

a) For applicants assuming the creation and maintenance of a single job through the Program:

– Non-refundable Financial Allocation (AFN) – maximum 100,000 lei/beneficiary, an amount that can represent a maximum of 95% of the eligible expenses (including VAT for non-taxable companies) related to the project;

b) For applicants assuming the creation and maintenance of two jobs through the Program:

– Non-refundable Financial Allocation (AFN) – maximum 200,000 lei/beneficiary, an amount that can represent a maximum of 95% of the eligible expenses (including VAT for non-taxable companies) related to the project;

(2) The financing object must fall into one or more of the following eligible categories:

a) (1) Technological equipment, excluding mechanical, electrical, electronic gambling machines, billiard tables, and jukeboxes. Technological equipment, according to the scoring grid, refers to all tangible assets in the category of fixed assets described in groups 2.1, 2.2, and 2.3 of Government Decision No. 2139/2004 for approving the Catalog regarding the classification and normal operating periods of fixed assets, except for those specified by this implementation procedure.

(2) Assets from the eligible technological equipment category also include fixed assets for playgrounds, sports halls, fitness, drones, x-body and strength equipment, specific systems aimed at energy efficiency, systems using renewable energy sources for the activities for which funding is requested, as well as 100% electric vehicles.

(3) The purchase of systems, installations, and equipment aimed at energy efficiency, systems using renewable energy sources for the efficient conduct of the activities for which funding is requested, as well as 100% electric vehicles, is considered to meet the sustainability development scoring criterion if the total eligible expenses in this category are at least 5% of the AFN value.

(4) Examples of equipment, respectively, systems aimed at energy efficiency, systems using renewable energy sources for the efficient conduct of the activities for which funding is requested, as well as 100% electric vehicles include: cars, buses, minibusses, bicycles, mopeds, motorcycles, karts, UTVs, ATVs, scooters, 100% electric vehicles, as well as their corresponding charging stations, heat pumps, mini-wind turbines, air compressors, photovoltaic panels and/or systems, solar panels, waste sorting-recycling stations, etc.

(5) Renewable energy or “renewable energy” means non-fossil renewable energy, namely wind energy, solar energy (solar thermal and photovoltaic solar), geothermal energy, ambient energy, wave energy, hydroelectric energy, biomass, landfill gas, gas from wastewater treatment plants, and biogas;

(6) Means of transport explicitly excluded from technological equipment include those specified in Article 4.3.1 lit. c) or subassemblies for these means of transport, except for 100% electric vehicles, and also the expenses mentioned in Article 4.3.1 lit. f.)

(7) For activities related to CAEN Rev 2 codes 6201, 6202, 6203, 6209, 6311, 6312, 6910, 6920, 7111, 7112, 7410, the hardware equipment exceeding the minimum value of the mandatory digital package is part of the technological equipment category, classified in the fixed assets groups 2.1, 2.2, and 2.3 of Government Decision No. 2139/2004 for approving the Catalog regarding the classification and normal operating periods of fixed assets.

b) (1) Acquisition of workspaces, production spaces, and spaces for service provision and trade. The value of the asset to be acquired under the Program will be based on an assessment by an ANEVAR expert evaluator, except for mobile work/production/service/trade spaces.

(2) Assets in this category must not have a residential purpose both at the time of acquisition and throughout the implementation period of the Program.

(3) Mobile work/production/service/trade spaces include tents for organizing events and pressure balloons. For mobile work/production/service/trade spaces, no ANEVAR report is required.

c) (1) Means of transport, other than those provided for in Article 4.3.1, lit. a), para. (4): cars, buses, minibusses, bicycles, mopeds, motorcycles, karts, UTVs, ATVs, motorhomes with or without engines, trailers, and semi-trailers, platforms, isothermal and refrigerated containers, floating docks, maritime boats for passengers, pleasure boats, aircraft, utility vehicles, and vehicles with special purposes, except for all G symbol vehicles, according to Order MLPTL 211/2003 with subsequent amendments and completions. 100% electric vehicles will be assimilated with the equipment provided in 4.3.1 lit. a). Freight transport vehicles for hire or reward requested by enterprises engaged in freight transport will not be financed.

(2) For rent-a-car, driving schools and piloting, and taxi transport activities, there are no maximum value and number limits for purchased cars.

(3) Except for the activities provided in para. (2), cars are eligible for all activities under the Program with an eligible value of up to 50,000 lei (except for 100% electric ones) and a maximum of 1 car per beneficiary.

(4) If the beneficiary enterprise of minimis aid, in addition to the eligible activity for which it requests aid under the minimis scheme, also carries out freight transport activities for hire or reward, it cannot use minimis aid for the acquisition of freight transport means unless it ensures, by separating activities or a clear distinction between costs, that the activity excluded from the scope of the scheme does not benefit from minimis aid;

d) Purchase of furniture, office equipment, and human and material values protection systems, according to group no. 3 of Government Decision No. 2139/2004;

e) (1) Salaries, utilities (electricity, water, gas, sanitation, telephone, and internet subscription), accounting services, and expenses related to rents for workspaces, production spaces, or spaces for service provision and trade;

(2) For applicants who undertake to create and maintain a single job through the Program, the value of these expenses (salaries, utilities, accounting services, and rents) represents a lump sum of up to 30,000 lei from the approved eligible expenses following the funding request verification or from the approved sum at settlement. Settlement is made based on the beneficiary’s request accompanied by documents attesting to the creation of at least 1 job;

(3) For applicants who undertake to create and maintain two jobs through the Program, the value of these expenses (salaries, utilities, accounting services, and rents) represents a lump sum of up to 60,000 lei from the approved eligible expenses following the funding request verification or from the approved sum at settlement. Settlement is made based on the beneficiary’s request accompanied by documents attesting to the creation of at least 2 jobs;

f) (1) Digital package (digitalization voucher), which may include one or more of the following eligible expenses: business presentation website, online store, domain registration expenses without hosting, website/online store promotion expenses, necessary software, electronic signature, IT equipment, PC-type computing equipment, central unit, server, monitor, printer/copier/multifunctional device, including portable systems, licenses necessary for conducting the activity, smartphones, tablets.

(2) The digital package (digitalization voucher) represents a mandatory expense within the Program under the penalty of rejection of funding and has a minimum value of 25,000 lei from the total eligible expenses.

(3) The expense for electronic signature is eligible even before signing the financing agreement.

g) Entrepreneurial skills development courses held in Romania or in another member country of the European Union – for the associate/shareholder/administrator/employees of the applicant company, with an eligible value of maximum 1,000 lei/person;

h) Value Added Tax (VAT) non-deductible for applicants not paying VAT according to the Fiscal Code;

i) Consulting for preparing documentation for obtaining funding under this Program and for project implementation, with an eligible value of maximum 10,000 lei; This activity can be performed before signing the financing agreement. Eligible consultancy service providers under the Program can only be consultancy organizations legally entitled to carry out this type of activity, namely those having consultancy activity in their status or enterprises whose authorized activity includes one of the activities included in CAEN-Rev2 division 70. Companies providing consultancy services under the Start-up Nation Program cannot be suppliers for other eligible expenses within the program.

j) Two mandatory informative plaques, under the penalty of not granting AFN, worth at least 10 lei, but not more than 500 lei from the value of eligible expenses, which will be placed as follows:

– one inside the space at the project implementation location (indoor), in the place with the best visibility for visitors (reception, secretariat, waiting area, etc.);

– one outside the space at the project implementation location (outdoor), in the place with the best visibility for clients, next to the space where the activity takes place (street facade, building entrance, etc.).

k) Financial expenses related to credits/guarantees obtained for the loans contracted by beneficiaries for the implementation of projects accepted under the Program, for applicants using credit for project implementation.

INELIGIBLE BENEFICIARIES

(1) Companies engaged in:

* production or sale of weapons, ammunition, explosives, tobacco, alcohol, substances under national control, plants, narcotic and psychotropic substances and preparations;

* production or sale of energy products defined according to Law no. 227/2015 regarding the Fiscal Code, with subsequent amendments and completions, leasing activities, as well as:

a) fishing and aquaculture activities, covered by Council Regulation (EU) No. 1379/2013:
– 031 – Fishing
– 032 – Aquaculture

b) activities related to the primary production of agricultural products as listed in Annex 1 to the Treaty establishing the European Community, except for products obtained from fishing and aquaculture provided for in Council Regulation (EU) No. 1379/2013;

c) processing and marketing activities of agricultural products listed in Annex 1 to the Treaty establishing the European Community, in the following cases:

i. when the value of the aid is based on the price or quantity of such products purchased from primary producers or put on the market by the respective economic operators;

ii. when the aid is conditioned to be partially or fully transferred to primary producers (farmers);
By “processing agricultural products” is meant any operation carried out on an agricultural product resulting in a product that is still an agricultural product, except for activities carried out on farms necessary for the preparation of a product of animal or plant origin for first sale. By “marketing agricultural products” is meant the holding or exhibiting of an agricultural product for sale, offering for sale, delivery or any other form of placing on the market, except for the first sale by a primary producer to resellers or processors and any other activity preparing the product for this first sale; a sale made by a primary producer to final consumers is considered marketing if it takes place in separate premises reserved for this activity.

d) export-related activities, namely, aids directly linked to exported quantities, the establishment and operation of a distribution network, or for other current expenses related to export activities;

e) aids conditioned by the preferential use of national products over imported products;

f) aids intended for economic operators operating in the coal sector, as defined in EC Regulation No. 1407/2002 on state aid for the coal industry (CAEN Rev.2)
– 051 – Extraction of hard coal
– 052 – Extraction of lignite
– 061 – Extraction of crude petroleum
– 062 – Extraction of natural gas
– 0721 – Mining of uranium and thorium ores
– 0892 – Peat extraction
– 091 – Support activities for petroleum and natural gas extraction
– 099 – Support activities for other mining and quarrying

g) Aids for the acquisition of road freight transport vehicles granted to economic operators engaged in freight transport services for hire or reward.

(2) (1) In case an enterprise carries out its activity both in one of the exempted sectors (those mentioned above) and in one or more sectors or fields of activity included in the scope of this scheme, its provisions apply to aid granted for non-exempted sectors.

(2) To benefit from the provisions of the scheme, the enterprise concerned must ensure, through appropriate means, such as separating activities or distinguishing between costs, that activities carried out in excluded sectors do not benefit from minimis aid granted in accordance with this scheme.

(3) Economic operators cannot benefit from minimis aid under the Program if there are family ties, including spouse, up to grade II inclusive, and relatives up to grade II inclusive, between the shareholding structures of the beneficiary and its suppliers or when the winning bidder holds the majority shareholding in two participating companies for the same type of procurement within the acquisitions made by private applicants of non-reimbursable funds. The applicant shall submit together with the reimbursement request a declaration to this effect, attached to the settlement file, according to the legislation in force regarding conflicts of interest.

(4) Economic operators cannot benefit from minimis aid under the Program if the shareholders or associates have/had the status of shareholder or associate in another company benefiting from non-repayable financial aid in previous editions of the Start-up Nation Program, or under the measure “Grants for working capital granted to SMEs” within the state aid scheme instituted by EMERGENCY ORDINANCE no. 130 of July 31, 2020 regarding some measures for granting financial support from non-repayable external funds, related to the Operational Program Competitiveness 2014-2020, in the context of the COVID-19 crisis, or under the state aid scheme dedicated to HoReCa activities provided for in Government Emergency Ordinance no. 224/2020 regarding some measures for granting financial support to undertakings in the tourism, catering, and event organizing sectors, whose activity was affected in the context of the COVID-19 pandemic;

(5) Each beneficiary is obliged to prove, no later than the payment of the reimbursement request, the commitment through the project, with an indefinite full-time employment contract for at least 1 job for which funding is received, as well as the obligation to maintain the job occupied for at least 2 years starting from the date of payment of the non-repayable financial aid (AFN). The job is considered created by the project if it is created and occupied between the date of signing the financing agreement and the date of payment of the reimbursement request, by a person who has not had employment relationships in the last 6 months with the applying enterprise, prior to the signing of the financing agreement.

(6) Companies whose shareholders/associates have owned companies for which they have signed financing agreements in previous sessions of the Start-up Nation Program and have disposed of more than 49% of the shares or stocks are not eligible within the Program, regardless of whether the company received AFN or not;

(7) Beneficiaries and/or shareholders/associates/administrators of companies who have committed financial irregularities or acts of corruption established by final court decisions are not eligible.

(3) (1) In addition to the eligibility criteria specified in Art. 3.2, applicants related to Pillar II – Start-up Nation Diaspora will prove their domicile or residence abroad for at least the last 12 months until the date of publication in the Official Gazette of the ministerial order approving this implementation procedure.

(2) The documents proving residence for at least the last 12 months until enrollment are provided for in Order no. 500/2016 regarding the documents certifying residence abroad published in the Official Gazette of Romania no. 223/ March 25, 2016.

(3) Applicants related to Pillar II – Start-up Nation Diaspora must be born on the territory of Romania.