REI Finance Advisors: Up to 37.5 mln. EUR of non-reimbursable funds can be accessed by start-ups, SMEs or big companies for projects of more than 1 mln. EUR
Application period, extended until 2023. Which are the newest amendments for the beneficiaries
- The companies could obtain non-reimbursable funds between 500,000 to 37.5 mln. EUR of state aid funding;
- Disposal of the “Standard of Cost” notion, amongst few of the measures;
- The total value of the investment project should be a minimum of 4.5 mln. RON;
Great news coming from The Ministry of Public Finance that has announced a three-year extension of the GD 807/2014 financing measure, between 500,000 EUR to 37.5 million EUR of EU funds for Start-ups, SMEs and big companies, the deadline being set to December 31st, 2023.
According to the 4th revision from the Applicant’s Guide developed for GD 807/2014 for the establishment of a State Aid scheme whose main objective is to stimulate the investments with a high impact on the economy, with changes and further additions, a list of additional measures to support the applicants has been published – from Start-ups, SMEs to big companies / corporations.
REI Finance Advisors has selected the main changes that could help the beneficiaries access the grants through GD 807/2014 scheme:
- According to the new document, the “Standard of Cost” notion has been disposed of, therefore 10% of the value could be settled in Bucharest area (up to 7.5 mln. EUR), 35% – Ilfov county and West (up to 26.25 mln. EUR), respectively 50% – the rest of the country areas (37.5 mln. EUR);
- No evidence of co-financing will be necessary to filing the project yet within 6 months from the financing agreement issue; Moreover, no evidence of the land will be necessary when filing the project, on condition the land be free of any fees, which will help a lot to obtain the financing agreements faster;
- The elimination of specific irrelevant quantitative indicators in the analysis process to enhance the flexibility for economic operators to access financing;
- The elimination of “The Impact of State Aid to competitive environment” quality indicator;
- The investment could be started right after the project has been filed at the Ministry of Finance – the State Aid department and right after carrying out the procurement procedure;
- Newly founded companies, with a minimum capital of 100,000 RON, are eligible but the administrator should not run the same activity in other entities;
“We invite the beneficiaries to analyze the non-reimbursable financing sources before starting any investment projects, especially for the time being – in these economic times, taking into consideration the fact that whatever type of equipment is about to be bought with GD 807/2014 financing is no longer needed to be stated, yet only the total value of it. In this new context, given the fact that there is no standard of cost anymore, hotels could be financed by start-ups or big companies, hospitals as well, other than production units, one of the biggest sectors that have accessed financing. Beneficiary’s obligations to obtain non-reimbursable financing are to keep the average numbers of employees that they have had in for the last year and to pay the taxes (salary taxes, profit taxes, local taxes etc.) equally to the given grant but strictly for the investments project, not for the whole company. Moreover, in the Applicant’s Guide there can be found the non-eligible activities. Production, HoReCa, Recycling, medical activities, slaughterhouses and food processing units or warehousing are GD 807/2014 eligible as well. New construction units / equipment acquisitions are also eligible, but not the refurbishment of existing buildings”, stated Roxana Mircea, partner REI Finance Advisors, one of the most dynamic consultancy agencies specialized in attracting EU funds or state aids for companies with local activity.
The main objective of the state aid scheme is to enhance regional development through investments in high-technology fixed assets into realising products with added value, no matter the size of the beneficiaries.
The total value of the investments project should be a minimum of 4.5 million RON. This value has been set and determined to approximately 1 million EUR (4,5 RON/EUR). That maximum allocated budget for this scheme is 4,070 million RON, approximately 925 million EUR.
“The submitting session is permanently open, which means that new projects can be submitted anytime. The evaluation session takes up to 4 months, but the companies can start the investment before getting the financial agreement, expenses being settled when the project obtains financing”, added Roxana Mircea.
About REI Grup
REI FINANCE ADVISORS and REI INTERNATIONAL, part of REI Grup (reigrup.ro), 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 35 specialists in 6 regional offices 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 200 mln. EUR mark of approved projects. More details about REI Grup activity can be found here.