FUNDING

INVESTMENT GRANTS FOR SERVICE CAPACITY NECESSARY – value ranging from a minimum of 50,000 euros to a maximum of 200,000 euros over three financial years, within a maximum of five times the turnover achieved in 2019.

INVESTMENT GRANTS FOR RE-TECHNOLOGIZATION NECESSARY – value ranging from 50,000 euros to a maximum of 500,000 euros, within a maximum of five times the turnover achieved in 2019.

ELIGIBLE BENEFICIARIES

Eligible Applicants/Beneficiaries submitting the funding application and implementing the project within this competition are SMEs – micro-enterprises, small and medium-sized enterprises.

Applicants for INVESTMENT GRANTS FOR SERVICE CAPACITY NECESSARY, in the form of de minimis aid, must cumulatively meet the following conditions:

a) recorded operational profit from operational activity, respectively from exploitation activity in 2019

b) established by December 31, 2018, inclusive;

c) commit to ensuring project sustainability, namely to ensure the conduct of operational/current activities for a minimum period of 3 years after the expiration of the project implementation period;

d) have their own project co-financing at a percentage of 5% for micro-enterprises, 10% for small enterprises, and 15% for medium-sized enterprises;

e) not considered an enterprise in difficulty as of December 31, 2019, in accordance with the provisions of Article 2, point 18 of Commission Regulation (EU) No 651/2014 of June 17, 2014, declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, as amended and supplemented by subsequent amendments and completions;

f) have not received financial support from public funds, including European funds, in the last 5 years for the same activities (eligible costs), or are not currently implementing projects funded, in whole or in part, from other public sources for the same activities;

g) commit to providing evidence of the reasonableness of costs for the investments for which de minimis aid is requested;

h) the investment grant for service provision capacity requested has a minimum value of 50,000 euros and a maximum value of 200,000 euros, over three financial years, and does not exceed a maximum of five times the turnover achieved in 2019;

i) a minimum of 20% of the project value represents investments that significantly contribute to climate change mitigation without significantly harming other environmental objectives, and the other investment components do not significantly harm any of the environmental objectives;

Applicants for INVESTMENT GRANTS FOR RE-TECHNOLOGIZATION NECESSARY, in the form of state aid, must cumulatively meet the following conditions:

a) recorded operational profit from current activity, respectively from exploitation activity in 2019;

b) established by December 31, 2018, inclusive;

c) commit to ensuring project sustainability, namely to ensure the conduct of operational/current activities for a minimum period of 3 years after the expiration of the project implementation period;

d) the requested investment grant for re-technologization has a minimum value of 50,000 euros and a maximum value of 500,000 euros and represents a maximum of five times the turnover from 2019;

e) have own project co-financing unaffected by state aid, in addition to the percentages provided in Annex No. 14 to the guide;

f) not considered an enterprise in difficulty as of December 31, 2019, in accordance with the provisions of Article 2, point 18 of Commission Regulation (EU) No 651/2014 of June 17, 2014, declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, as amended and supplemented by subsequent amendments and completions;

g) have not received financial support from public funds, including European funds, in the last 5 years for the same activities (eligible costs), or are not currently implementing projects funded, in whole or in part, from other public sources for the same activities;

h) commit to providing evidence of the reasonableness of costs for the investments for which state aid is requested;

i) a minimum of 20% of the project value represents investments that significantly contribute to climate change mitigation without significantly harming other environmental objectives, and the other investment components do not significantly harm any of the environmental objectives;

j) have not relocated, in the two years prior to the aid request, to the unit where the initial investment for which aid is requested is to take place and will not do so for a period of up to two years after the completion of the initial investment for which aid is requested, under the conditions of Article 2, point II, sub-point 611 of Commission Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, as amended and supplemented by subsequent amendments and completions;

FINANCIAL SUPPORT TYPES

(1) The value of INVESTMENT GRANTS FOR NECESSARY SERVICE CAPACITY PROVIDING awarded per project and beneficiary, in the form of de minimis aid, ranges from a minimum of 50,000 euros to a maximum of 200,000 euros (equivalent in lei at the inforeuro exchange rate valid in June 2022) over three financial years, within a maximum of five times the turnover achieved in 2019.

The value of INVESTMENT GRANTS FOR NECESSARY RE-TECHNOLOGIZATION awarded per project and beneficiary, in the form of state aid, is determined within a maximum of five times the turnover achieved in 2019, ranging from 50,000 euros to a maximum of 500,000 euros (equivalent in lei at the inforeuro exchange rate valid in June 2022).

(2) The activity for which funding is requested must correspond to an authorized CAEN code as of December 31, 2019, at the enterprise level, not at the implementation location. It is not allowed to submit a project for multiple CAEN codes.

(3) A. Expenses provided in the project budget, falling under the de minimis aid, will be classified into categories as follows:

a) Expenses for renovating/modernizing production/service spaces (20/63) that are the subject of the funding application, including categories of expenses exempted from authorization, as well as expenses for site planning and landscaping, utility connection expenses, accessibility expenses, if these expense categories are necessary for the investment and are included in its value.

b) Basic investment expenses including:

– Equipment such as: machinery, technological and functional equipment with and without installation, including IT&C, software technologies, independent equipment (15/54)

– include expenses for the acquisition of machinery and technological equipment, as well as those included in functional installations, including expenses related to the installation of technological machinery and machinery included in functional installations, including the related networks necessary for their operation. If necessary for the installation of technological machinery and the related networks, expenses for the provision of utilities necessary for the objective can also be included, including expenses for training the personnel necessary for servicing the equipment, machinery, and similar, provided that these do not exceed 5% of the acquisition value and are included in the investment value (13/40);

– Expenses for the acquisition of technological equipment, machinery, working installations, furniture, computer equipment, office supplies, of the nature of fixed assets, (15/54).

– Expenses for the acquisition of automotive transport means necessary for production/service activities, transport, and distribution, excluding transport means (6/14) related to administrative activities or not related to the subject of the funding application.

– Expenses for the acquisition of specific installations/equipment aimed at achieving energy savings, as well as systems using renewable/alternative energy sources to streamline the activities for which funding has been requested. If necessary for the installation of these equipment, expenses for design and technical assistance can also be included. These expense categories are eligible only if they are part of production/service activities or support these categories of activities and are related to the subject of the funding application;

– Expenses for design and technical assistance – design and engineering (14/44);

(14/46) – design and engineering – include expenses for the development of the necessary documentation to obtain the agreements, approvals, and authorizations related to the investment objective.

c) Expenses for digital transformation – Intangible assets (22/76) – including expenses for the acquisition of patents, licenses, trademarks, software programs, other rights, and similar assets. The eligible value of intangible assets cannot exceed 20% of the eligible value of tangible assets that are the subject of the project.

d) Consultancy expenses (14/45) up to 5,000 euros, based on supporting documents for: 1. payment for consultancy services for the preparation of the funding application and all necessary studies for its preparation, including the business plan; 2. payment for consultancy services for project implementation. Included are consultancy services in project management, consultancy/legal assistance for the preparation of procurement documentation and/or application of public procurement procedures, if applicable.

e) Expenses for mandatory publicity and information activities (8/17) related to the project – eligible according to the provisions of the funding contract, up to 5,000 lei excluding VAT. Expenses for marketing and promotion activities are not eligible.

f) Non-deductible value-added tax according to national tax legislation and non-recoverable according to the provisions of Article 69(3)(c) of Regulation (EU) No. 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development, and the European Maritime and Fisheries Fund, and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No. 1083/2006, applicable to eligible expenses.

(4) B. Expenses provided in the project budget, falling under the scope of state aid, will be classified into categories as follows:

a) Expenses for renovating/modernizing production/service spaces (20/63) that are the subject of the funding application, including categories of expenses exempted from authorization, as well as expenses for site planning and landscaping, utility connection expenses, accessibility expenses, if these expense categories are necessary for the investment and are included in its value.

b) Basic investment expenses including:

– Equipment such as: machinery, technological and functional equipment with and without installation, including IT&C, software technologies, independent equipment (15/54)

– including expenses for the acquisition of machinery and technological equipment, as well as those included in functional installations, including expenses related to the installation of technological machinery and machinery included in functional installations, including the related networks necessary for their operation. If necessary for the installation of technological machinery and the related networks, expenses for the provision of utilities necessary for the objective can also be included, including expenses for training the personnel necessary for servicing the equipment, machinery, and similar, provided that these do not exceed 5% of the acquisition value and are included in the investment value (13/40);

– Expenses for the acquisition of technological equipment, machinery, working installations, furniture, computer equipment, office supplies, of the nature of fixed assets (15/54);

– Expenses for the acquisition of automotive transport means necessary for production/service activities, transport, and distribution, excluding transport means (6/14) related to administrative activities or not related to the subject of the funding application;

– Expenses for the acquisition of installations/equipment specific to achieving energy savings, as well as systems using renewable/alternative energy sources to streamline the activities for which funding has been requested;

c) Expenses for digital transformation – Intangible assets (22/76)– including expenses for the acquisition of patents, licenses, trademarks, software programs, other rights, and similar assets. The eligible value of intangible assets cannot exceed 20% of the eligible value of tangible assets that are the subject of the project.

d) Non-deductible value-added tax according to national tax legislation and non-recoverable according to the provisions of Article 69(3)(c) of Regulation (EU) No. 1303/2013, as amended and supplemented, applicable to eligible expenses. In addition to these eligible expenses, the project may require several other expenses that are not eligible but are necessary for the proper implementation of the project. These expenses shall be borne by the beneficiary without being taken into account in determining the value/intensity of non-repayable financial assistance.

(5) The final project audit activity is not eligible for funding under this type of project, but it is mandatory for project implementation. The activity of an audit of environmental management systems, which will confirm the achievement of the objectives assumed by declaration, is not eligible for funding under this type of project, but it is mandatory for project implementation.

(6) Notary fees will not be reimbursed.

(7) Projects that include investments started (i.e., a firm order for goods, etc., has been placed) before the submission of the funding application will not be reimbursed. All expenses presented for reimbursement must be related to the subject of the funding application.

(8) Beneficiaries are: • for investment grants in the form of de minimis aid –

Microenterprises, small and medium-sized enterprises operating in the eligible sectors listed in Annex No. 12, mentioned below:

– Class P – Education;

– Class Q – Health and social work;

– Class S – Other service activities. • for investment grants in the form of state aid – Microenterprises, small and medium-sized enterprises operating in the eligible sectors listed in Annex No. 13, mentioned below:

– Class C – Manufacturing Industry (excluding codes 11 Beverage manufacturing, 12 Tobacco manufacturing, and 254 Manufacture of weapons and ammunition); – Class F – Construction;

– Class G – Wholesale and retail trade; repair of motor vehicles and motorcycles;

– Class H – Transportation and storage;

– Class I – Accommodation and food service activities according to Annex No. 13

(9) Expenses not funded from investment grants under state aid include:

a) expenses for consultancy services;

b) expenses for the acquisition, construction, modernization, rehabilitation, major repairs necessary for buildings, related constructions, and other categories of buildings, constructions of a similar nature serving hotels and restaurants;

c) expenses for the acquisition of land, expenses for the acquisition, construction, modernization, rehabilitation, major repairs necessary for buildings/office headquarters, ancillary constructions, as well as other categories of buildings/constructions of a similar nature or other activities intended for real estate investments, as well as those intended for buildings, ancillary constructions, buildings, and constructions of a similar nature;

d) expenses for the acquisition, repair, modernization, and other similar categories related to the administrative activities of means of transport;

e) any categories of expenses not related to the investment areas necessary for re-technologization. Expenses incurred after the commissioning of the investment project, such as salary expenses, expenses for the purchase of raw materials, consumables, repairs and maintenance, and other similar expense categories are the responsibility of the de minimis/state aid beneficiary.

(10) Expenses not funded from investment grants under de minimis aid include:

a) expenses for consultancy services, studies, or other related activities, except those provided under point A item d);

b) expenses for the acquisition, construction, modernization, rehabilitation, major repairs necessary for buildings, related constructions, and other categories of buildings, constructions of a similar nature serving hotels and restaurants;

c) expenses for the acquisition of land, expenses for the acquisition, construction, modernization, rehabilitation, major repairs necessary for buildings/office headquarters, ancillary constructions, as well as other categories of buildings/constructions of a similar nature or other activities intended for real estate investments, as well as those intended for buildings, ancillary constructions, buildings, and constructions of a similar nature;

d) expenses for the acquisition, repair, modernization, and other similar categories related to the administrative activities of means of transport;

e) any categories of expenses not related to the investment areas necessary for service delivery capacities.

(11) Specific conditions regarding investments:

a) The investment must be maintained in Romania for a period of at least 3 years from the completion of the investments. This condition does not prevent the replacement of a facility or equipment that has become outdated or has been destroyed during this period, provided that the economic activity is maintained in Romania for the relevant minimum period.

b) The acquired assets must be new. Purchases of second-hand equipment are not eligible.

c) Leasing acquisitions are not allowed.

d) Intangible assets are eligible for investment cost calculations if they meet the following conditions:

• They must be used exclusively within the SME;

• They must be depreciable;

• They must be purchased under market competition conditions from third parties not affiliated with the buyer;

• They must be included in the SME’s assets and must remain associated with the project for a minimum period of 3 years after project completion.

e) The purchase of intangible fixed assets, for use within the project, is based on:

• a contract to obtain ownership rights (in the case of software applications or patents),

• a license or assignment contract for obtaining a right to use.