FUNDING

Value ranging from 50,000 euros to a maximum of 500,000 euros, determined within the limit of up to five times the turnover achieved in 2021.

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.

Grant applicants for necessary investment for technological upgrades, in the form of state aid, must meet the following cumulative conditions:

a) have recorded operational profit from current activities, namely from operating activities in the financial year 2021;

b) were established by December 31, 2020, inclusive;

c) undertake to ensure the sustainability of the project, 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 grant for investment in technological upgrade requested has a minimum value of 50,000 euros and a maximum value of 500,000 euros, but not more than 5 times the net turnover for the year 2021;

e) have own co-financing for the project from any legally constituted sources that do not represent a form of public aid, in addition to the percentages provided in Annex 4;

f) are not considered undertakings in difficulty in 2021, in accordance with the provisions of art. 2 point 18 of Commission Regulation (EU) No. 651/2014 of 17 June 2014, as amended and supplemented;

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

h) undertake to provide evidence regarding the reasonableness of the costs for the investments for which state aid is requested;

i) at least 20% of the project value represents investments that significantly contribute to climate change mitigation without significantly prejudicing other environmental objectives, and the other investment components do not significantly prejudice any of the environmental objectives;

j) minimum 10% of the project value represents expenses that demonstrate the applicant’s level of digitalization through investments in tangible and intangible assets such as: website, automation software for SME activity, integrated hardware and software systems for SME automation;

k) have not relocated, in the two years prior to the aid application, 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;

l) have not received illegal aid and have not misused, in an abusive manner, legally granted aid, which until the date of project submission has not been fully recovered including related interest.

FINANCIAL AID TYPES

(1) The value of grants for necessary investments in technological upgrades granted per project and beneficiary, in the form of state aid, is determined within the limit of up to five times the turnover achieved in the year 2021, ranging from 50,000 euros to a maximum of 500,000 euros (equivalent in lei at the inforeuro exchange rate valid in August 2022).

(2) The activity for which funding is requested must correspond to a CAEN code provided in Annex 11, authorized on the date of filing the funding application. Submitting a project on multiple CAEN codes is not allowed.

(3) Expenses provided in the project budget will be categorized as follows:

a) expenses for renovating/modernizing production spaces (20/63) covered by the funding application, including categories of expenses for exempted works, site preparation and landscaping expenses, utility connection expenses, accessibility expenses, if these categories of expenses are necessary for the investment and are included in its value. The cost of modernization works is considered eligible only to the extent that it is related to an initial investment;

b) basic investment expenses including:

1. equipment such as: machinery, technological and functional equipment with and without installation, including IT&C, software technologies, independent equipment (15/54) – covering expenses for the acquisition of machinery and technological equipment, those included in functional installations, including expenses related to the installation of technological equipment and equipment included in functional installations, including the associated networks necessary for their operation. If necessary for the installation of technological equipment and the provision of associated networks, utility connection expenses necessary for the objective can be included – expenses for ensuring the necessary utilities for the objective (13/40);

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

3. expenses for the acquisition of automobile transportation means (6/14) necessary for production/service activities, transport, and distribution, except for transportation means related to administrative activities or not related to the subject of the funding application;

4. expenses for the acquisition of installations/equipment specific for achieving energy savings;

c) digital transformation expenses – 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 the tangible assets covered by the project;

d) non-deductible value-added tax according to national tax legislation and non-recoverable according to the provisions of art. 69 paragraph (3) letter c) of Regulation (EU) No. 1,303/2013, as amended and supplemented, related to eligible expenses.

In addition to these eligible expenses, the project may require a series of other expenses that are not eligible but are necessary for the proper implementation of the project. These expenses are borne by the beneficiary, without being taken into account in determining the value/intensity of non-repayable financial assistance.

(4) The final project audit activity is not eligible for funding underthis project type, but it is mandatory for project implementation.

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

(5) Notary fees will not be reimbursed.

(6) Projects including investments initiated (i.e., a firm order for goods, etc.) before submitting the funding application are not eligible. All expenses presented for reimbursement must be related to the subject of the funding application and only to the extent that they are part of an investment for the production of goods.

(7) Investments in technological upgrades grants do not finance:

a) consultancy service expenses, studies, or other related activities;

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

c) expenses for the purchase of land, expenses for the purchase, construction, modernization, rehabilitation, major repairs necessary for office buildings, annex buildings, as well as other categories of buildings/constructions of a similar nature or other activities for real estate investments, those for office buildings, annex buildings, buildings, and constructions of a similar nature serving the production/service activities provided for by Government Emergency Ordinance No. 113/2022, as amended and supplemented;

d) expenses for the purchase, repair, modernization, other similar categories related to administrative activities;

e) investments in renewable energy production, even if used for own consumption;

f) any categories of expenses not related to the investment areas provided for in art. 23 of Government Emergency Ordinance No. 113/2022, as amended and supplemented. Expenses incurred after the commissioning of the investment project, such as salaries, expenses for the purchase of raw materials, consumables, repairs and maintenance, and other similar expense categories, are the responsibility of the state aid beneficiary.

(8) Specific investment conditions:

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 outdated equipment or machinery or those destroyed during this period, provided that the economic activity is maintained in Romania for the relevant minimum period.

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

c) Leasing acquisitions are not permitted.

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 unrelated to the buyer;

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

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

• contract for obtaining ownership rights (in the case of software applications or patents),

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

f) The proposed investment represents an initial investment, in accordance with the provisions of Regulation (EC) No. 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.