The European Commission approved a Romanian scheme worth 216 million euros (1,043 billion RON) to support small and medium-sized enterprises (SMEs) affected by pandemic of coronavirus. Approximately EUR 207 million (RON 1 billion) of the total amount of support will take the form of guarantees for factoring products (with appeal against the seller), and approximately EUR 9 million (RON 43 million) will represent direct grants to cover commissions related to guaranteed factoring products.
The purpose of the measure is to help SMEs cope with the liquidity shortage they face because of the coronavirus pandemic and to ensure that they have diversified financing channels.
Details of interest for future beneficiaries
Only factoring products issued between 26 August 2020 and 30 June 2021 are eligible under the measure.
Regarding guarantees for factoring products:
• the guarantee cannot exceed 50% of the factoring products
• the guaranteed factoring product has an initial validity period of 12 months, which can be extended up to a limit of 48 months, but without any discretion on the part of the granting authority.
Regarding direct grants, the maximum amount will not exceed:
• EUR 100 per beneficiary operating in the field of primary production of agricultural products
• EUR 120 per beneficiary operating in the fisheries and aquaculture sector
• EUR 800 per beneficiary operating in all other sectors.
Both guarantees and direct grants are channeled through financial intermediaries and therefore safeguards are in place to ensure that the aid is passed on in full to the final beneficiaries.
The scheme was approved under Temporary framework regarding state aid, being compliant with it. The Commission concluded that the scheme is necessary, appropriate and proportionate to remedy a serious disruption of the Romanian economy.
More information on the temporary framework and other actions taken by the European Commission to address the economic impact of the coronavirus pandemic is available are here.
