FUNDING:

Non-Reimbursable Financial Allocation (NRFA) – maximum 200,000 lei/beneficiary, a sum that can represent up to 95% of the eligible expenses (including VAT for non-payers) related to the project.

ELIGIBLE BENEFICIARIES

(1) The provisions of the Program may be accessed by companies (micro-enterprises, small and medium-sized enterprises) that cumulatively meet, at the time of completing the application 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 Emergency Government Ordinance no. 6/2011 for stimulating the establishment and development of micro-enterprises by business beginners, with subsequent modifications and completions;

b) are SMEs, according to the provisions of art. 2 and art. 4 paragraph (1) letters a), b) or c) of Law no. 346/2004 regarding the stimulation of the establishment and development of small and medium-sized enterprises, with subsequent modifications and completions, which transposes into national legislation European Commission Recommendation no. 361 of 6 May 2003, published in the Official Journal of the European Union no. L124 of 20 May 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, partner enterprises;

d) have entirely private share capital;

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

f) are registered with the Trade Register 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 funding is requested is eligible under the Program (Annex 1) and authorized until the payment of the refund application, according to art. 15 of Law 359/2004 regarding the simplification of formalities for the registration in the Trade Register of individuals, family associations and legal entities, their fiscal registration, as well as the authorization of the functioning of legal entities, with subsequent modifications and completions. The funding request is made for a single CAEN code;

h) are established by individuals 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 rescheduled debts are not eligible to access the Program.

j) (1) Have not exceeded the de minimis ceiling of 200,000 euros over 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 of 100,000 euros over three financial years for beneficiaries engaging in the carriage of goods in road freight transport or for hire or reward. The ceilings 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 community funds.

(2) In the event that, by granting new de minimis aid, the maximum ceiling mentioned in paragraph j (1) would be exceeded, the undertaking may benefit2, if requested, from the provisions of this de minimis aid scheme only for that fraction of aid which, cumulated with the other de minimis aids received previously, does not exceed this ceiling.

(3) In the case of mergers or acquisitions, when determining whether new de minimis aid granted to a new undertaking or to the undertaking acquiring exceeds the relevant ceiling, all previous de minimis aids granted to all merging undertakings are taken into account. De minimis aids legally granted before the merger or acquisition remain legally granted.

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

(5) De minimis aid granted under this measure may be cumulated with de minimis aids granted in accordance with Commission Regulation (EU) No 360/2012, up to the ceiling set in that regulation.

(6) De minimis aids may be cumulated with de minimis aids granted in accordance with other de minimis regulations up to the ceiling of 200,000 euros (100,000 euros for undertakings engaged in road freight transport of goods on behalf of third parties or for hire or reward), equivalent in lei.

(7) For mergers and/or acquisitions that change control status, if the value thresholds set out in Article 12 of Competition Law no. 21/1996, republished, with subsequent modifications and completions, are exceeded, they shall be notified to the Competition Council, and the implementation of the transaction of economic concentration nature shall be possible only after obtaining an authorization decision from the competition authority.

(8) The aspect may also concern the above-mentioned split transactions, in case the assets and/or the fully operational undertaking resulting exceed the value thresholds provided by Competition Law.

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

(10) De minimis aids that are not granted for or linked to specific eligible costs may be cumulated with other state aids granted under a block exemption regulation or a Commission decision.

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 subject to a decision issued by the European Commission / AIMMAIPE / other provider of state aid / Competition Council, for the recovery of state/de minimis aid or, if they have been subject to such a decision, it has already been executed and the entire claim recovered, with associated penalties;

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

(2) In case the job/jobs 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/jobs, maintaining their number and conditions for which funding was received;

n) Ensure a co-financing percentage of at least 5% of the eligible project value, under the sanction of non-issuance of NRFA.

FINANCIAL AID TYPES

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

a) For applicants who undertake to create and maintain a single job through the Program:

– Non-Reimbursable Financial Allocation (NRFA) – maximum 100,000 lei/beneficiary, a sum that can represent a maximum of 95% of the eligible expenses (including VAT for non-payers) related to the project;

b) For applicants who undertake to create and maintain two jobs through the Program:

– Non-Reimbursable Financial Allocation (NRFA) – maximum 200,000 lei/beneficiary, a sum that can represent a maximum of 95% of the eligible expenses (including VAT for non-payers) 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, and electronic gambling machines, billiard tables, jukeboxes. By technological equipment, according to the scoring grid, all tangible assets from the category of fixed assets described in groups 2.1, 2.2, and 2.3 of Government Decision no. 2139/2004 approving the Classification Catalog and the normal service lives of fixed assets, with the exception of those specified by this implementation procedure.

(2) The category of eligible technological equipment also includes tangible assets from the category of fixed assets for playgrounds, sports halls, fitness, drones, x-body and strength, equipment, and systems aimed at achieving energy savings, systems that use renewable energy sources to streamline the activities for which funding is requested, as well as 100% electric vehicles.

(3) The acquisition of systems, installations, and equipment aimed at achieving energy savings, systems that use renewable energy sources to streamline the activities for which funding is requested, as well as 100% electric vehicles, is considered to meet the sustainability development criterion if the total eligible expenses in this category are at least 5% of the NRFA value.

(4) Examples of equipment, respectively systems aimed at achieving energy savings, systems that use renewable energy sources to streamline the activities for which funding is requested, as well as 100% electric vehicles are: cars, buses, minibuses, bicycles, mopeds, motorcycles, karts, UTVs, ATVs, trailers and semitrailers, platforms, insulated and refrigerated vans, floating docks, passenger maritime boats, pleasure boats, aircraft, utility vehicles, and special purpose vehicles, except for all symbol G vehicles, according to Order MLPTL 211/2003 with subsequent modifications and completions. 100% electric vehicles will be assimilated to the equipment provided for in 4.3.1 lit. a). Freight road transport vehicles requested by undertakings engaged in road freight transport are not funded.

(5) For activities related to CAEN Rev 2 codes 6201, 6202, 6203, 6209, 6311, 6312, 6910, 6920, 7111, 7112, 7410, equipment is included in the category of technological equipment, classified in groups 2.1, 2.2, and 2.3 of Government Decision no. 2139/2004 approving the Classification Catalog and the normal service lives of fixed assets, hardware equipment that exceeds the minimum value of the mandatory digital package.

b) (1) Acquisition of workspaces, production spaces, and service and commercial spaces. The value of the asset to be acquired under the Program will be based on an assessment by an ANEVAR expert appraiser, with the exception of mobile workspaces/production/service/commercial spaces.

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

(3) The category of mobile work/production/service/commercial spaces includes tents for organizing events and pressure balloons. For mobile work/production/service/commercial spaces, no ANEVAR report is required.

c) (1) Means of transport, other than those provided for in Art. 4.3.1, lit. a), para. (4): cars, buses, minibuses, bicycles, mopeds, motorcycles, karts, UTVs, ATVs, motorhomes with or without a motor, trailers and semitrailers, platforms, insulated and refrigerated vans, floating docks, passenger maritime boats, pleasure boats, aircraft, utility vehicles, and special-purpose vehicles, except for all symbol G vehicles, according to Order MLPTL 211/2003 with subsequent modifications and completions. 100% electric vehicles will be assimilated to the equipment provided for in 4.3.1 lit. a). Freight road transport vehicles in the account of third parties or for consideration, requested by undertakings engaged in freight road transport, are not funded.

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

(3) With the exception of the activities provided for 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 / beneficiary.

(4) If the beneficiary undertaking of de minimis aid, in addition to the eligible activity for which it requests aid under the de minimis scheme, also carries out freight transport activities on behalf of third parties or for consideration, it cannot use de minimis aid to purchase freight transport vehicles 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 de minimis aid;

d) Acquisition of furniture, office equipment, and human and material value 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 service and commercial spaces;

(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 rent) represents a lump sum of up to 30,000 lei from the value of eligible expenses approved following the verification of the funding application, respectively from the approved amount for reimbursement. Reimbursement is 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 rent) represents a lump sum of up to 60,000 lei from the value of eligible expenses approved following the verification of the funding application, respectively from the approved amount for reimbursement. Reimbursement is 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: activity presentation website, online store, domain registration expenses without hosting, website/online store promotion expenses, software necessary for carrying out the activity, electronic signature, IT equipment, PC-type computing equipment, central unit, server, monitor, printer/copier/multifunctional device, including portable systems, licenses necessary for carrying out the activity, smartphones, tablets.

(2) The digital package (digitalization voucher) represents a mandatory expense within the Program under the penalty of rejection for 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 conducted in Romania or in another Member State of the European Union – for the associate/shareholder/administrator/employees of the applicant company, with an eligible value of up to 1,000 lei/person;

h) Value-added tax (VAT) non-deductible for non-VAT paying applicants 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 up to 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, i.e., they have consultancy activity in their status or are enterprises authorized to carry out one of the activities included in CAEN-Rev2 division 70. Companies providing consultancy services under the Start-up Nation Program cannot qualify as providers for other eligible expenses under the program.

j) Two mandatory informative plaques, under the penalty of AFN non-awarding, worth a minimum of 10 lei, but no 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 as defined by Law no. 227/2015 regarding the Fiscal Code, with subsequent modifications 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, with the exception of products obtained from fishing and aquaculture as 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 determined 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 on being partially or entirely transferred to primary producers (farmers); By “processing of 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 preparing a product of animal or plant origin for first sale. By “marketing of agricultural products” is meant the holding or exposure of an agricultural product for sale, offering for sale, delivery, or any other form of market introduction, except for the first sale by a primary producer to resellers or processors and any other activities 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 linked directly to exported quantities, the establishment and operation of a distribution network, or other current expenses related to export activities;

e) aids conditional on the preferential use of national products over imported products;

f) aids intended for economic agents operating in the coal sector, as defined in Regulation (EC) No. 1407/2002 on state aid for the coal industry (NACE 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 agents whose main activity is road freight transport services for third parties or for consideration.

(2) (1) If an enterprise carries out its activities in one of the exempted sectors (those mentioned above) as well as in one or more sectors or fields of activity included in the scope of this scheme, its provisions shall apply to aids granted for the non-exempted sectors.

(2) In order to benefit from the provisions of the scheme, the enterprise concerned must ensure, by appropriate means such as separating activities or distinguishing costs, that the activities carried out in the excluded sectors are not benefiting from de minimis aid granted in accordance with this scheme.

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

(4) Economic operators cannot benefit from de minimis aid under the Program if shareholders or associates have/had the quality of associate or shareholder in another enterprise benefiting from non-repayable financial aid under 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 on certain measures for granting financial support from non-repayable external funds, related to the Operational Competitiveness Programme 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 on certain measures for granting financial support to enterprises in the field of tourism, public catering, and event organization, whose activity was affected in the context of the COVID-19 pandemic;

(5) Each beneficiary is obliged to prove, no later than at the time of reimbursement, the engagement 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 non-repayable financial aid (AFN) payment. The job is considered created through the project if it is created and occupied between the signing date of the financing agreement and the reimbursement request payment date, 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 are not eligible under the Program whose shareholders/associates have held companies for which they have signed funding agreements in previous editions of the Start-up Nation Program and have alienated more than 49% of the social parts or shares, regardless of whether the company received AFN or not;

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

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

(2) The documents attesting residence for at least the last 12 months prior to registration are provided for in Order No. 500/2016 on documents attesting 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 in Romania.