START-UP NATION

FINANCING:

Minimum value of non-refundable financing: 25,000 euros

Maximum value of non-refundable financing: 200,000 euros

For start-ups that do not meet the condition of carrying out activity for a period corresponding to at least one full fiscal year, the maximum value of non-refundable financing shall not exceed 100,000 euros.

The applicant’s contribution to investment financing must be at least 10% of the eligible investment value, and the PR Center’s contribution to investment financing is a maximum of 90% of the eligible investment value, within the de minimis ceiling.

ELIGIBLE BENEFICIARIES

(1) The applicants for this call for projects are companies falling into the category of micro-enterprises, including newly established micro-enterprises (start-ups), in accordance with the provisions of Law 346/2004 on the stimulation of the establishment and development of small and medium-sized enterprises, with subsequent amendments and completions, registered under Law no. 31/1990 on companies, republished with subsequent amendments and completions, or under Law 1/2005, with subsequent amendments and completions.

The applicant must fall into the category of micro-enterprises, both at the time of requesting financing (i.e., the date of submission of the financing application) and at the time of granting financing (i.e., the date of signing the financing contract).

In the case of micro-enterprises established in the year of applying for financing, only the financial situations of related or partner enterprises (if applicable) are taken into account. Branches, agencies, representations, or other entities without legal personality are not eligible.

(2) The eligible applicant represents the entity that cumulatively meets the criteria listed and presented in this section.

A. The field of activity in which the investment is made

PR Center finances investments only in eligible fields of activity (CAEN classes), as listed in Annex 3 to the Applicant’s Guide and only if the applicant operates or intends to expand into one of the fields of intelligent specialization identified in the Smart Specialization Strategy of the Central Region for the period 2021-2027.

· At the time of launching the call for projects, the applicant must already have the eligible field of activity (CAEN class) targeted by the investment, registered in the scope of activity (according to the ORC registration certificate), regardless of whether it represents the main or secondary activity of the enterprise.

· At the time of launching the call for projects, the applicant must already have the eligible field of activity (CAEN class) targeted by the investment, authorized at the headquarters (main or secondary) identified as the place of project implementation. The field of activity (CAEN class) in which the investment/project will be carried out must be declared and separately authorized at the project implementation location.

· The investment proposed by the project may target multiple CAEN classes, to the extent that they form a unified production flow together.

B. The applicant has conducted activity for a period corresponding to at least one full fiscal year and has recorded operating profit or net profit (>0 lei) in the fiscal year preceding the submission of the financing application or in the year 2019. The condition regarding the conduct of activity for a period corresponding to at least one full fiscal year does not apply to micro-enterprises established in the year of applying for financing and in the year preceding the submission of the financing application; the profit condition does not apply to micro-enterprises established in the year of applying for financing. The applicant has not had temporary activity suspension at any time in the current year of CF submission and in the previous fiscal year.

Criteria regarding the duration of activity and operating profit or net profit refer to the entire activity of the applicant (i.e., regardless of the field of activity targeted by the investment). Data regarding operating profit or net profit are those reported in the financial statements for the financial year preceding the submission of the financing application, approved by the general meeting of shareholders or associates. In cases where no operating profit or net profit (>0 lei) was recorded in the fiscal year preceding the submission of the financing application, the financial statements for the year 2019 will be verified.

C. a) The applicant has recorded an average number of employees of at least 1 (one employee), in the fiscal year preceding the submission of the financing application

or

b) The applicant has at least one full-time employee with an indefinite period, at the time of submitting the financing application

D. The applicant, as well as its legal representatives who exercise their duties, meet the eligibility conditions, namely they do not fall into the exclusion situations presented below, starting from the date of submitting the financing application The applicant or its legal representative is not in any of the situations below as of the date of submitting the financing application, during the evaluation, selection, and contracting period:

o is bankrupt/ insolvent or subject to a liquidation or judicial administration procedure, has concluded agreements with creditors (in the aforementioned procedures), suspended its economic activity, or is subject to procedures following these situations or is in similar situations following a procedure of the same nature provided for by national legislation or regulations;

o Is subject to a legal procedure for declaring it in one of the situations from the previous point.

o Is subject to a recovery order regarding the declaration of state aid as illegal or incompatible with the common market or has not been subject to a recovery decision of state aid that has not already been executed and the debt has not been fully recovered, including the relevant interest, attaching evidence to this effect;

o Is in difficulty, in accordance with the provisions of Commission Regulation (EU) No 651 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, namely:

– [applies only if the enterprise has, at the date of the declaration, at least 3 years since its establishment] in the case of a limited liability company [other than an SME existing for less than 3 years or, for the purpose of eligibility for risk financing aid, an SME meeting the condition provided for in Article 21(3)(b) of Regulation (EU) 651/2014, and which qualifies for risk financing investments following a due diligence process conducted by a selected financial intermediary], when more than half of its subscribed share capital has disappeared due to accumulated losses. This situation arises when deducting accumulated losses from reserves (and from all other elements generally considered as part of the company’s equity) leads to a negative result exceeding half of the subscribed share capital. For the purposes of this provision, “limited liability company” specifically refers to the types of commercial companies mentioned in Annex I to Directive 2013/34/EU of the European Parliament and of the Council (*), and “share capital” includes, if applicable, any additional capital. – [applies only if the enterprise has, at the date of the declaration, at least 3 years since its establishment] in the case of a commercial company in which at least some of the partners have unlimited liability for the company’s debts [other than an SME existing for less than three years or, for the purpose of eligibility for risk financing aid, an SME meeting the condition provided for in Article 21(3)(b) of Regulation (EU) 651/2014, and which qualifies for risk financing investments following a due diligence process conducted by a selected financial intermediary], when more than half of its own capital as shown in the company’s accounting has disappeared due to accumulated losses. For the purposes of this provision, “a commercial company in which at least some of the partners have unlimited liability for the company’s debts” specifically refers to those types of companies mentioned in Annex II to Directive 2013/34/EU.

– when the enterprise is subject to collective insolvency proceedings or meets the criteria provided by national legislation for initiating collective insolvency proceedings at the request of its creditors;

– when the enterprise has received rescue aid and has not yet repaid the loan or ceased the guarantee or has received restructuring aid and is still subject to a restructuring plan.

– has been found guilty, by a final court decision, of committing fraud/crimes related to obtaining and using European funds and/or national public funds related to them, in accordance with the provisions of the Criminal Code approved by Law no. 286/2009, with subsequent amendments and completions.

– does not carry out activities with products of an erotic or obscene nature, with gambling, as well as those that contravene public order and/or current legal provisions;

– is not in the situations provided for in European Commission Recommendation no. 1039/16.07.2020, published in the Official Journal of the European Union no. 227/16.07.2020 regarding the conditioning of public financial support on the absence of a connection with non-cooperative jurisdictions for tax purposes, starting from the date of submission of the funding application, during the evaluation, selection, and contracting period, respectively:

– is not a tax resident or registered under the laws of jurisdictions listed by the European Union as non-cooperative jurisdictions for tax purposes;

– is not directly or indirectly controlled by shareholders from jurisdictions listed by the European Union as non-cooperative, the analysis going up to the ultimate beneficiary, as defined in art. 3 point 6 of Directive 2015/849;

– does not directly or indirectly control subsidiaries or does not own permanent establishments in jurisdictions listed by the European Union as non-cooperative jurisdictions for tax purposes; and

– does not exercise ownership rights jointly with enterprises from jurisdictions listed by the European Union as non-cooperative jurisdictions for tax purposes.

– meets any other specific conditions/requirements, which do not affect the provisions on de minimis aid, resulting from the applicable legal provisions and applicant’s guide.

• The Applicant finds itself in the following situations: – in the case of the Applicant for whom debts have been established against it, as a result of legal measures taken by the management authority, it will be able to conclude the financing contract in the following situations:

i. acknowledges the debt established against it by the management authority for PR Center and pays it in full, attaching evidence to this effect, except for projects under implementation, for which it acknowledges the debt established and pays it in full or expresses its agreement to extinguish it from the value of subsequent refund requests, related to the project in which it was found.

ii. has contested in court the notifications/minutes/records establishing debts and, by decision of the courts, these have been suspended from execution, attaching evidence to this effect. The situations referred to in points i. and ii. above do not apply to financing contracts for which state aid/de minimis aid has been granted; in this case, decisions to recover state aid must be executed and the debts recovered in full.

– has paid its net payment obligations to the state budget and respectively the local budget, in the last calendar year/ in the last 6 months, in the amount established by the current legislation.

– holds the legal right to carry out the activities provided for within the project.

• The legal representative exercising their duties during the evaluation, selection, and contracting process, is not in one of the following situations:

– is subject to a conflict of interest, as defined in accordance with the national/ community provisions in force, or is in a situation that has or may have the effect of compromising the objectivity and impartiality of the evaluation, selection, contracting, and implementation process of the project;

– is in a situation to seriously mislead the Management Authority or the evaluation and selection committees, by providing incorrect information in this call for projects or in other project calls conducted within the PR Center;

– is in a situation to attempt / have been attempted to obtain confidential information or influence the evaluation and selection committees or the Management Authority during the evaluation and selection process of this call for projects or other project calls conducted within the PR Center;

– has suffered final convictions in cases related to the obtaining and use of European funds and/or national public funds;

– the legal representative has been convicted by a final judgment for an offense related to their professional conduct, for fraud, corruption, participation in a criminal organization or any other illegal activities detrimental to the financial interests of European communities.

E. The Applicant holds rights over the property (building and/or land), object of the project, which give them the right to carry out the investment starting from the date of submission of the financing application Rights over the infrastructure targeted by the project

For investments that include construction works subject to authorization, applicants must prove the existence of one of the following rights over the property (land and building):

· right of private ownership;

· right of concession over a property belonging to the public domain;

· right of superficies over the land on which a construction object of the project will be erected.

For investments that do not include construction works subject to authorization, applicants must prove the existence of one of the following rights over the property (land and building):

· right of private ownership;

· right of concession over a property belonging to the public domain;

· right of superficies over the land on which a construction is erected;

· usufruct right;

· right of use resulting from a loan for use (commodate) contract or lease/rental contract;

The documents covering the applicant’s right over the infrastructure for which the investment is proposed must be comprehensive for the data mentioned in the financing application and its annexes (location/position/surface).

The space intended for project implementation is, as a rule, the property (land and/or buildings) where the assets purchased through the project, such as machinery, production lines, etc., are installed, mounted, and/or where these goods are used. In the case of those fields of activity that involve the use of equipment, machinery in different locations, such as construction activities and similar others, the space intended for project implementation will be considered the space where the equipment, machinery are stored, garaged. The space must be suitable for the conduct of the activity for which the assets are purchased.

The duration of the conferred rights must cover the sustainability period of the project.

F. The Applicant will have to prove that they can ensure the sustainable nature of the investment in accordance with Article 65 of Regulation (EU) no. 1060/2021 The period for which the right over the property object of the project is conferred to eligible applicants must cover the duration mentioned in Article 65 of the Regulation in order to ensure the sustainable nature of the investment, namely a period of three years from the date of making the final payment under the financing contract. This period will be calculated approximately, taking into account the period of evaluation, selection, and contracting process, the project implementation period, and the final payment to the beneficiary, to which the 3-year period mentioned above is added.

The Applicant, in case of receiving funding from PR Center for infrastructure investments, must, during the sustainability period:

· not cease or relocate the productive activity outside the development region within which the implementation of the project was initially envisaged;

· not make a modification to the quality of their right over the property, except under the conditions provided in the financing contract;

· not make a substantial modification affecting the nature, objectives, or conditions of realization that would undermine the initial objectives of the investment.

G. (Only for projects proposing construction works subject to authorization) The property object of the project meets cumulatively, no later than the signing of the financing contract, the following conditions, (the applicant will complete Annex 2 – Single Declaration in this regard), not being affected by legal, conventional, judicial limitations of the real right invoked, incompatible with the realization of the project activities:

· to be free from any burdens or prohibitions incompatible with the realization of the project activities;

· not to be subject to guarantees, assignments, or any other form of encumbrances that could affect the invoked right;

· not to be the subject of disputes concerning the right invoked by the applicant for the implementation of the project, pending resolution in the courts;

· not to be subject to claims under special laws or common law. The applicant shall inform the Managing Authority within 5 days of any changes occurring in the circumstances mentioned during the evaluation and contracting procedure of the funding application, as well as during the implementation of the funding contract if the proposed funding application is accepted.

H. The Applicant Has the Financial Capacity to Ensure:

a contribution declared in the relevant section of the Funding Application (minimum 10% of the eligible expenses);

financing all costs, including ineligible but necessary costs, related to the project;

the financial resources necessary for the optimal implementation of the project under the subsequent reimbursement of eligible expenses from Union funds;

operating and maintenance expenses related to the project, including investments in infrastructure or productive investments, to ensure their financial sustainability throughout the duration of the funding contract.

(3) Geographic Area Covered

The area covered by this call for proposals must be located in the Central Region, Romania (counties Alba, Brasov, Covasna, Harghita, Mures, Sibiu), in urban areas, including rural localities (villages) that are part of an urban administrative territorial unit (town, municipality).

TYPES OF FINANCIAL AID

(1) The minimum value of non-repayable financing: 25,000 euros, and the maximum value of non-repayable financing: 200,000 euros. For startups that do not meet the condition regarding the operation over a period corresponding to at least one full fiscal year, the maximum value of non-repayable financing shall not exceed 100,000 euros, corresponding to one or more projects.

The applicant’s contribution to the investment must be at least 10% of the eligible investment value, and the contribution of the Central Region to the financing of an investment is a maximum of 90% of the eligible investment value, within the de minimis threshold.

(2) The financial allocation for this call is 27,607,117 euros, of which ERDF support is 23,466,050 euros and state budget financing is 4,141,067 euros.

The exchange rate used to calculate compliance with the financial allocation of the call for proposals is the InforEuro exchange rate valid in the month of the call’s launch, namely February 2024.

From the total budget of the call, the amount of 4,529,022 euros ERDF + 799,240 euros (BS) = 5,328,262 euros is allocated to actions supporting ecological production processes and efficient resource use in enterprises.

(3) The maximum amount of aid, under the de minimis regime, that can be granted to a single undertaking from public funds, over a period of 3 consecutive fiscal years (the last 2 fiscal years before the date of submission of the funding application and the current fiscal year of the funding application submission) is 200,000 euros, equivalent in lei, at the InforEuro exchange rate valid on the date of aid grant, except for the road freight transport sector on behalf of third parties or for consideration, in which case the amount of aid is set at the maximum limit of 100,000 EUR.

(4) ELIGIBLE EXPENSES

1. Expenses for Land Arrangement

a) Land Arrangement

These include expenses incurred at the beginning of the works for the preparation of the site and consist of: demolitions, dismantling, disaffection, deforestation, collection, sorting, and transport to authorized waste facilities, vertical systematizations, accesses/roads/paths/parking lots/drains/gutters/drainage channels, retaining walls, drainage, dewatering, site preparation works.

b) Environmental Protection and Restoration Works

These include expenses incurred for environmental protection works and actions, including restoring the natural environment after the completion of works, such as tree planting, green space redevelopment, environmental protection works/actions.

2. Expenses for Providing Utilities Necessary for the Objective

These include expenses related to works to provide the utilities necessary for the functioning of the investment objective, executed on the legally delimited site belonging to the investment objective, as well as expenses related to connection to utility networks, such as: water supply, sewerage, natural gas supply, thermal agent, electricity, telecommunications, which are executed on the delimited site, legally, belonging to the investment objective, as well as expenses related to connection to utility networks.

3. Expenses for Design and Technical Assistance

a) Studies

These include expenses related to geotechnical, geological, hydrological, hydrogeotechnical, photogrammetric, topographic, and land stability studies of the site where the investment objective is located, other specialized studies necessary for the realization of the investment.

b) Obtaining Permits, Agreements, and Authorizations

These include expenses related to:

· obtaining/extending the validity of the urban planning certificate;

· obtaining/extending the validity of the construction/demolition permit;

These include expenses such as – expenses related to the installation of technological equipment and equipment included in functional installations, including the related networks necessary for their operation, to the extent that they are related to equipment, equipment acquired within the project benefiting from de minimis aid.

c) Equipment, technological and functional equipment requiring installation

Include expenses such as: expenses for the acquisition of machinery and technological equipment, as well as those included in functional installations, acquisition of specific installations/equipment aimed at energy efficiency, and, up to 15% of the eligible project value, systems using renewable (alternative) energy sources to streamline the activities for which funding has been requested; renewable (alternative) energy sources: solar energy (used for heat production or electricity supply through photovoltaic systems); wind energy; hydroenergy; biomass (biodiesel, bioethanol, biogas); geothermal energy.

d) Equipment (machinery, technological and functional equipment without installation, other fixed assets) Include expenses related to the acquisition of technological equipment, machinery, working installations, furniture, computer equipment, stationery, of the nature of fixed assets, respectively, which are found in Subgroup 2.1. “Technological equipment (machines, machinery and working installations)”, Subgroup 2.2. “Measurement, control and regulation devices and installations”, Class 2.3.6. “Equipment and installations for transporting and lifting”, or Group 3 “Furniture, office equipment, systems for protecting human and material values and other corporeal assets” of Government Decision no. 2139/2004 for the approval of the Catalog regarding the classification and normal operating lives of fixed assets, with subsequent amendments and completions and which fall within the value limit associated with fixed assets, established by the legal regulations in force at the date of submission of the funding application;

e) Intangible assets

Include expenses related to the acquisition of patents, licenses, trademarks, software, other rights and similar assets, expenses related to the development of online marketing tools. The eligible value of intangible assets cannot exceed 15% of the eligible value of the tangible assets subject to the project. Intangible assets must also meet the following cumulative conditions:

· must be used exclusively within the unit receiving the aid;

· must be depreciable;

· must be acquired under market conditions from third parties unrelated to the buyer (the aid beneficiary)

· must be included in the assets of the enterprise receiving the aid and must remain associated with the project for which the aid was granted for a minimum period of three years from the date of final payment under the project.

5. Other expenses related to the basic investment/infrastructure

a) Construction site organization

– Construction and installation works related to the organization of the construction site

Expenses related to the construction of temporary buildings or arrangements in existing buildings, as well as expenses for dismantling the construction site: changing rooms/barracks/workspaces for site personnel, technological platforms/dismantling of technological platforms, sanitary groups, car wash ramps, material depots, foundations for cranes, lighting and power electrical networks, access roads, connections to utilities, fencing, presentation panels, fire stakes, expenses for dismantling the construction site, including expenses necessary for bringing occupied land back to its initial state upon completion of the execution of the works, except for expenses related to point 1.2. “Environmental protection arrangements and restoration to the initial state”, expenses related to temporary constructions for civil protection.

– Related expenses related to the organization of the construction site

Include expenses for:

· obtaining building/ demolition permits for works related to the organization of the construction site;

· site location taxes, rental of traffic signs,

· temporary interruption of transport or distribution networks for water, sewage, thermal agent, electricity, natural gas,

· assistance contracts with the traffic police,

· temporary contracts with the electricity supplier, with the water supplier, and with the sanitation units,

of investment/intervention works, an operation that constitutes the obligation of the contractors, except for expenses related to point 1.2. “Environmental protection arrangements and restoration to the initial state”. · the cost of electricity and water consumed on the construction site during the execution of the works, site security

b) Commissions, quotas, and taxes

They include, as appropriate:

· the quota related to the State Inspectorate in Constructions, calculated according to the provisions of Law no. 10/1995 on construction quality, republished

· the quota related to the State Inspectorate in Constructions, calculated according to the provisions of Law no. 50/1991 on the authorization of construction works execution, republished, with subsequent amendments and completions

· the quota related to the Social House of Constructors – CSC, in the application of the provisions of Law no. 215/1997 regarding the Social House of Constructors

· fees for agreements, conforming approvals and construction/demolition permits.

c) Various and unforeseen expenses

These expenses will be used in accordance with the public procurement legislation referring to contractual changes occurring during execution. They are considered eligible if properly detailed by supporting documents and only within the limit of 10% of the eligible value of the eligible expenses provided for in sub-chapter 4.1, from the project budget.

6. Information and publicity expenses

Expenses with mandatory information and publicity activities, in accordance with the provisions of the visual identity manual. Maximum expenditure ceiling – 7500 lei (VAT excluded).

7. External financial audit activity expenses

In case beneficiaries opt for concluding audit contracts, audit reports will confirm that the expenses included in the refund requests have been verified and are:

· environmental deposit fee, local taxes, rents for temporary occupation of public domain,

· rentals of changing rooms/barracks/containers/ sanitary groups, expenses necessary to bring occupied land back to its initial state upon completion of the execution,

· necessary for project implementation,

· provided for in the contract concluded with the project beneficiary,

· in accordance with the legal provisions in force, including those regarding the co-financing rate applicable to the project concerned.