Small producers can get grants of up to 500,000 lei in the framework of a program that was approved on Wednesday by the Cabinet. These are enterprises with an annual turnover of up to 5 million lei and with up to 9 employees, which will be able to access non-reimbursable financing of no more than 70% of the value of the investment project, but not more than 500,000 lei. The beneficiary’s contribution will constitute at least 30% of the amount of the project, IPN reports.
The Ministry of Economic Development and Digitalization said that small producers who have been operating for at least 12 months can participate in the program. Individuals who are just planning to set up a business are also eligible, if they can demonstrate the activity for the last year and register as an entrepreneurial entity within one month from the date of approval of the projects.
The financial support will be granted in the form of non-reimbursable financing. On account of the grants, entrepreneurs will be able to buy machinery and equipment, raw materials and construction materials necessary for equipping the production space, franchises, digitization solutions and business development services. In addition to the financing component, the program also envisions information, promotion, monitoring and evaluation activities.
The Small Producer Support Program aims to finance at least 100 businesses. Another goal is for at least 50% of the beneficiaries to see at least 10% increases in sales revenue annually. At least 30 funded businesses are to be managed by women. Also, at least 10% of the financed companies will apply innovative and sustainable development elements. Another target is to increase the volume of investments in the national economy by about 73 million lei by 2027.
The program was developed by the Ministry of Economic Development and Digitalization and the Organization for the Development of Entrepreneurship, which is also the institution responsible for implementing the program and developing the operations manual for implementation, as well as a guidebook for entrepreneurs.
The program will be launched in the third quarter of this year and will be implemented for 36 months, with an estimated budget of 20 million lei annually.
