The state program “Start for the Young People” that is intended for young people who want to start a business is extended for three more years, while the application procedure is simplified. There will be no calls for proposals. As of June, there will be ensured a continuous application process. The value of a grant intended for young people is raised to 200,000 lei.
“We are adjusting the training mechanism by turning this into a guidance and mentoring process as the young people need this more than financial support. We also extend the period of applying to financing for those who already received training at ODIMM courses from one year to three years. Ultimately, we will enable private individuals who do not have a business to also apply, but they will need to register the business during the next three months,” Dumitru Pîntea, acting director of the Organization for the Development of the SME Sector (ODIMM), stated in a news conferences.
About 180 persons applied to the training component of the program so far this year and over 160 persons already submitted investment projects for which they need financing from the state.
Also, a new instrument is launched as part of the program – loan with a grant component. Dumitru Pîntea said the conditions of this instrument are very advantageous. The interest rate on the loan will be fixed, of 6%. The grant from ODIMM will be of up to 250,000 lei, while the loan - of up to 1.5 million lei. It goes to a financial package of about 1.75 million lei that is sufficient for developing a business started by young people.
Also, as from this February, the authorities facilitated access to financial guarantees provided by the Loan Guarantee Fund by eliminating the guarantee commission of 0.5% for 2022 and the guarantee ceiling was raised. This way, up to 80% of the value of the loan can be guaranteed by ODIMM, while the total cap on the loan for young people is of about 5 million lei.
