The Romanian government continues its efforts to encourage the development of investments in small and medium enterprises (SMEs), by passing a new State aid scheme, which will become operational in October 2016. Furthermore, social enterprises (whose activity is mainly focused on social issues, by helping disadvantaged categories – for example, supply of goods and services) will be awarded a grand of 40,000 to 100,000 Euros, without having to provide co-funding. The aid scheme will be funded from European funds. The two abovementioned funding schemes are presented to you below.

1. LE PETIT JOURNAL – THURSDAY, 22 SEPTEMBER 2016
THE “LEGAL” COLUMN
Brought to you by
NEW FUNDING SCHEMES IN 2016
The Romanian government continues its efforts to encourage the development of
investments in small and medium enterprises (SMEs), by passing a new State aid
scheme, which will become operational in October 2016. Furthermore, social
enterprises (whose activity is mainly focused on social issues, by helping
disadvantaged categories – for example, supply of goods and services) will be awarded
a grand of 40,000 to 100,000 Euros, without having to provide co-funding. The aid
scheme will be funded from European funds. The two abovementioned funding
schemes are presented to you below.
STATE AIDS FOR SMES
The State aid proposed by the Government will provide SMEs with non-refundable
grants for eligible expenses, between 2017 and 2023. Beneficiaries will have to co-
fund the investment either from their own resources, or from external sources.
The scheme will become effective in October 2016 and payments will be made in
2017-2023. Applications will be submitted annually. According to Government
officials, the estimated number of beneficiaries is 200 and the total budget allocated
to the scheme is 900 million Lei (approximately 200 million Euros), namely 50 million
Euros per year.
Please note that the measures mentioned above are included in a Memorandum passed
by the Government, but the regulatory act and the award procedure have not been
published yet in the Official Journal.

2. FINANCIAL AIDS FOR SOCIAL ENTERPRISES
Social enterprises are those enterprises (cooperative companies, associations and
foundations, agricultural companies, credit cooperatives, any other legal persons
certified as social enterprises) whose activity has a social component and whose
purpose is to produce effects favorable to certain categories. Such enterprises,
regulated by Law no. 201/2015, dedicate their activity rather to the welfare of
communities than to obtaining profit. At present, the number of employees in the
social economy sector is 1.7%, compared to the EU average of 6.5%.
The total budget allocated to this scheme is of 20 million Euros and social
enterprises will have the change to receive a financial aid between 40,000 and
100,000 Euros per enterprise for the following eligible expenses:
- Professional training, guidance;
- Development of the enterprise’s capacity to supply goods and services,
including identification of new markets;
- Promotion of the social brand;
- Facilitating access to employment;
- Development of partnerships with relevant entities, development of
cooperation networks.
In order to receive financial aid, social enterprises will be required to have a target
group of at least 20 persons. Most probably, enrollment in the program will take place
in December 2016.
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