REI Finance Advisors: Profitable companies can get up to EUR 200,000 of EU “Grants for investments”

Any company with a EUR 70,000 profit in the last two years can access the maximum grant of EUR 200,000 offered by the Romanian Government with EU Funds through Action 3 of the Support Scheme “Grants for investments”. Moreover, new eligible activities have been introduced to Action 2, supporting the companies that have been affected by the Pandemic.

The ordinance 130 that was adopted on the 31st of July, and published in the Official Gazette no. 705/06.08.2020 which regulates the framework of the grants to help companies fight and overcome this period in which many businesses have been affected by the COVID-19 Pandemic, through 3 major support schemes: Microgrants (EUR 2.000), Grants for workforce (15 percent of the revenues in 2019, no more than EUR 150.000 per company and EUR 250,000 per group of companies) or Grants for investments (between EUR 50,000 – 200,000, to ask for the triple profit of  2019).

Action 3 – “Grants for investments” has a EUR 550 million allocation and a score grid which points to a maximum grant equal to three times the profit registered in 2019.

“A very important aspect is that no experience is needed in that domain of activity, therefore any company with a profit in one of the last two fiscal years could request for a non-reimbursable financing for an eligible activity, as it is showed in the Appendix 3 of Action 3 – Grants for investments. Therefore, any company with an operational profit of about EUR 70,000 qualifies for accessing the grant of EUR 200,000 if they want to invest in an activity eligible in Appendix 3. For a maximum score, the activity should have a negative balance, and the beneficiaries  be able to co-finance 45.1 percent of the value in Bucharest – Ilfov counties and 35.1 percent in the other parts of Romania”, said Roxana Mircea, partner REI Finance Advisors.

Of the EUR 550 million allocated, about EUR 82.5 million are reserved for investments made in Bucharest-Ilfov counties, respectively 412 companies that could obtain financing. Nationally, there are about 65 companies/county that could obtain a maximum grant of EUR 200,000.

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New activities are eligible in Action 2 – “Grants for workforce”

Compared to the initial form, the Ordinance 130 has introduced new activities that could benefit from financing through Action 2 – “Grants for workforce” like: Meat processing, fish, fruits, dairy, activities related to printing, books and newspapers editing or photo-video equipment. Advertising agencies, companies in the creative business or artistic interpretation, education, telecom or IT are also eligible.

The Action 2 – “Workforce grants” – in this case,  there is no scoring needed so it is recommended that the applicants be ready to file their application on the first day so as to maximize their chances to win the projects. With an allocation of EUR 350 million, with an average of EUR 100,000 per company,  a maximum can be reached of 3,500 projects financed,  about 83/county, respectively.

“We highly recommend the applicants to acquire the digital signature and to start preparation of the documentation, the budget, about two offers for each equipment or to follow the news related to this subject. Moreover, the projects should be filed in the first day/days since the opening session, having a score of 100 or minimum 90 points. As a safety measure for more trustworthy documentation and more chances to obtain the financing, we also recommend the companies to work with highly skilled consultants. This is the reason why we have decided to extend our team of specialists in the Bucharest office but also in the country to support the need for helping the companies looking for financing through EU funds or state aids proposed by the Government of Romania”, added Roxana Mircea.

REI Finance Advisors and REI International, part of REI Grup, are companies specialized in developing, implementing and monitoring the investment projects from the EU non-reimbursable funds (Regional Operational Program, Big Infrastructure Operational Programe), as well as state aid schemes (HG 495/2014, HG 807/2014, HG 332/2014, OUG 810).

With an experience of more than 10 years, REI Grup specialists are in permanent contact with the EU non-reimbursable funds mechanisms and can easily identify and secure fund access from internal and external sources. REI Group team consists of more than 30 specialists with vast experience in attracting funds for companies with local and international activity.

REI Grup has successfully secured financing for more than 250 projects in Romania so far with over 100 projects already implemented and a 99  rate of success. In 2019, REI Grup has recorded 80 mln. EUR approved projects, while this year it is expected to exceed the EUR 200 million mark of approved projects.