EU funding: new investments in Romania’s villages can get up to EUR 0.2 mln

New firms may receive 70% not refundable, 200.000 euro for investments in villages on EU funds-line 312 FEADR. For investments in Romania’s villages, in areas like production, services (medical, beauty), all activities except agriculture and tourism, new firms can receive 70 percent non- refundable, maximum EUR 200.000 euro to build a warehouse and to buy equipments. The funding line is 312 FEADR. The session is not open at this moment, but there will be one session or two each year until 2013. This year it was between May 2 and 31, so those who would like to apply should prepare the projects. There is already an applicants’ guide for this line.

By Roxana Mircea

To be eligible for this line, the firm has to be registered in a village. The investment-warehouse, equipments have to stay in that village, depending on the type of business.

Example: Those who want equipments for constructions, you can move the equipment depending on where you have contracts, but if you want to produce furniture, you have to produce it in that village.

The eligible expenses are both tangible and intangible investments:

a) Tangible investments (construction, modernization, expansion of buildings to productive purpose for conducting the activity covered by the project and construction of buildings for marketing their products, equipment related to equipment, machinery, etc..including the leasing of their purchase);

Acquisition of specialized vehicles and equipment is an eligible expense, as long as they serve to direct specific activities proposed by project activities and their need is justified in buying the feasibility / supporting statement.

a) Intangible investments (software, patents, licenses, etc.), Including their purchasing leasing.

The competition is quite high so the applicant has to reach at least 70 points; to get those points you have to set up the firm in the year you apply, to have an unique shareholder under 40 years old and to create eight new work places. The applicant has to present the proof that he has the money to put in this business – the 30 percent + non eligible expenses-VAT, taxes, interests-banks.

It takes 6 months to evaluate the project and after the financing contract has been signed, the beneficiary may implement the project. He will have to pay first and then the 70% will be reimbursed in 1-2 months. The acquisition process is based on a calendar that the beneficiary provided, according to his necessity and his financial capacity.

Those who plan to make a deposit, or to produce, provide services in villages they should have a space or a land for building, they should prepare the architectural project, ask for offers, have a discussion with a bank if they will take a loan, in order to provide clear information to the consultant that will prepare the request of financing and the business plan in time. Good luck!

Roxana Mircea is a specialist in non-refundable state aid and in EU- funded projects. She has been working in these areas since 2007 and has coordinated more than 130 such projects. To get in touch with her, e-mail roxana.mircea[at]fonduri-europene.tel

 

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