ROMPAN announces that several support measures have been approved for the milling and bakery sector. The discussions held within meetings between ROMPAN and the Prime Minister of Romania, Ludovic Orban, respectively the leadership Ministry of Agriculture and Rural Development, have materialized in Emergency Ordinances of the Government.
The financing facilities that milling and bakery entrepreneurs will be able to access are the following:
1. GEO regarding the establishment of a Grant Scheme run by MEEMA in partnership with AIMMAIPE
Beneficiaries in the bakery, pastry and flour products sector can obtain grants worth 50.000-200.000 euros for investments. Also, a co-financing of at least 15%, respectively 30% for Bucharest/llfov is required. It should be noted that these investments can be complementary to those financed by the European Fund for Agriculture and Rural Development.
2. GEO 118/2020 on Financial Leasing for the purchase of new or second-hand assets
This type of financing is dedicated especially to companies that need technology transfer in the production processes necessary to carry out the activity. The guarantees will be granted by the FNGCIMM and will be insured by the state, through the Ministry of Public Finance, in a maximum percentage:
● 80% of the financing value for the purchase of IT equipment and information technology;
● 60% of the value of financing for the purchase of machinery and technological equipment, vehicles for transporting goods and people, used for commercial purposes within a financial leasing operation.
According to the program, the maximum cumulative amount of state-guaranteed financing that can be granted to a beneficiary will be 5.000.000 lei. The period and method of repayment of financing will be established by the financiers, according to their internal rules.
The maximum duration of the leasing period will be 72 months, with the possibility of granting a grace period between 3 and 12 months. The advance paid is 0%, but, depending on the beneficiary's request, it can reach up to a maximum of 20% of the purchase value of the financed good (excluding VAT).
3. Changes to State Aid Schemes for large enterprises
The amendments to GD 807/2014, which established a State Aid Scheme for large enterprises and major investments in the economy, are:
● Extending the period in which financing agreements can be issued until 2023;
● Extension of the period in which State Aid can be paid until 2028 (corresponding to the extension of the validity period of regulation 651 of 2014);
● Other facilities for applicants.
4. IMM INVEST ROMANIA
Additions and changes made to the program IMM INVEST ROMANIA by GEO 29/21.03.2020, GEO 42/04.04.2020 and GEO 89/2020:
A. LOANS FOR WORKING CAPITAL
● Medium enterprises can benefit from financing worth up to 5.000.000 lei and state guarantees worth a maximum of 80% of the value of the loans.
● Small businesses can request financing for working capital of up to 1.000.000 lei, and micro enterprises up to 500.000 lei. State guarantees in the case of small and micro enterprises are a maximum of 90% of the loan amount.
Conditions for all types of businesses:
● The duration of the financing is a maximum of 36 months, with the possibility of extension for another 36 months.
● The compound interest rate of 3-month ROBOR +2,5%/year is subsidized 100% from the state budget.
● The costs of granting, monitoring and administering the guarantees granted in the name and account of the state will be borne from the state budget.
B. LOANS FOR INVESTMENTS
Both medium-sized, small and micro enterprises have the same benefits if they apply for these loans:
● Financing up to 10.000.000 lei;
● State guarantees in the amount of a maximum of 80% of the value of the loans, exclusive of interest, commissions and related expenses;
● The duration of the financing is up to 72 months, with the possibility of a maximum grace period of 18 months;
● The interest rate composed of ROBOR at 3 months + 2%/year is subsidized 100% from the state budget;
● The costs of granting, monitoring and administering the guarantees granted in the name and account of the state will be borne from the state budget.
The amounts granted in compliance with the conditions of the program will not be able to be used for the refinancing of other loans in progress.
Regarding the draft GEO regarding the establishment of a temporary Aid Scheme for the milling-bakery sector, this is no longer promoted. Following discussions between ROMPAN and finance specialists, it was found that if this measure were approved, then it could only be valid between October and December 31, 2020.
We remind you that through the Rural Credit Guarantee Fund you can access loans for investments or working capital, guaranteed by the Fund in proportion to 80%.
For additional information, contact ROMPAN (office@rompan.ro).
