Funding for SMEs in the South-East Region: Access Between 220,000 and 1.5 Million Euros

iflows·03.10.2024

Within the South-East Regional Program 2021-2027 (Programul Regional Sud-Est), the guidelines for Operation 1.6 - A.2 Increasing SME Competitiveness were recently published. The guidelines are currently under public consultation, and the call for projects is set to open shortly. In this article, we will detail the main aspects that entrepreneurs need to know about this funding program.

How much can SMEs obtain?

The call PRSE/1.6/A.2/1/2024 has a total budget of 86,725,188 euros, of which 73,716,410 euros come from the European Regional Development Fund (ERDF), and 13,008,778 euros represent national co-financing. SMEs can request non-reimbursable funding within the following limits:

  • Minimum: 220,000 euros (20,000 euros de minimis aid and 200,000 euros regional state aid).
  • Maximum: 1,500,000 euros (200,000 euros de minimis aid and up to 1,300,000 euros regional state aid).

Who can apply?

Eligible applicants are non-agricultural SMEs operating in the South-East Region that have their registered office or a tax-registered place of business in urban areas, or non-agricultural small and medium-sized enterprises with a registered office or place of business in rural areas, excluding the ITI Danube Delta area​.

Eligibility Criteria

To be eligible, SMEs must meet the following conditions:

  1. Size: Must be micro, small, or medium-sized enterprises, according to the European definition.
  2. Domain: Enterprises operating under CAEN codes (Classification of Activities in the National Economy) specific to production and service fields are eligible, excluding the agricultural, fisheries, and aquaculture sectors.
  3. Location: Must be registered in the South-East Region (Brăila, Buzău, Constanța, Galați, Tulcea, and Vrancea). If the project involves opening a new place of business, it must be tax-registered at the latest by the time of the first payment.
  4. Financial conditions: Must not be in financial difficulty, insolvency, or bankruptcy. The applicant must demonstrate that they have not benefited, in the last 3 years, from de minimis aid which, combined with the allocation requested through this program, exceeds 300,000 euros
  5. Activity: Projects must directly contribute to increasing SME competitiveness through innovation, expansion of production capacity, digitalization, and productive investments

Co-financing and Own Contribution

Applicants must ensure an own contribution, which can vary between 25% and 40% of the eligible value of the project, depending on the applicable regional aid intensity​.

Eligible Expenses

Eligible activities and expenses include:

  • Construction, modernization, or expansion of production spaces.
  • Acquisition of technological equipment, machinery, and tangible assets.
  • Equipping with energy-saving equipment or those using renewable sources (solar panels, heat pumps, etc.).
  • Software and licenses for the digitalization of activities.
  • Activities related to the circular economy and the use of industrial symbiosis

Beneficiary Obligations

After obtaining funding, SMEs must fulfill the following obligations:

  • Complete the implementation of the project according to the approved plan.
  • Maintain the investments and jobs created for a period of at least 3 years after project completion.
  • Comply with state aid rules and report activities periodically.

For more details and to consult the full applicant guidelines, please visit: https://regiosudest.ro/ghiduri/prioritatea-1/apeluri-in-consultare/apel-in-consultare-publica-1-6-operatiunea-a-2-cresterea-competitivitatii-imm-urilor-29-04-2024.