Emergency Ordinance no. 130/2020

 In Fiscal news

Emergency Ordinance (OUG) no. 130/2020 on some measures for the granting of financial support from non-reimbursable external funds, related to the Operational Program Competitiveness 2014-2020, in the context of the crisis caused by COVID-19, as well as other measures in the field of European funds

In the Official Gazette no. 705 dated 06.08.2020 was published the Emergency Ordinance (OUG) no. 130/2020 on some measures for the granting of financial support from non-reimbursable external funds, related to the Operational Program Competitiveness 2014-2020, in the context of the crisis caused by COVID-19, as well as other measures in the field of European funds, which enters into force starting with 06.08.2020.

The ordinance provides 3 major forms of support from external non-reimbursable funds for SMEs:

1) microgrants granted from non-reimbursable external funds in the form of a lump sum, including for registered sole traders and individual medical offices;

2) working capital grants awarded in the form of a lump sum and as a percentage of turnover;

3) grants for productive investments granted from non-reimbursable external funds based on the evaluation of the submitted investment project.

The normative act defines the following terms:

Final beneficiaries of state aid – SME/micro enterprises/ registered sole traders/private medical practice, non-governmental organizations with economic activity, hereinafter referred to as NGOs with economic activity, which receive state aid through the micro-grant / working capital grant / productive investment grant, by concluding a state aid contract with the administrator of the state aid scheme;

Private medical practice – the unit, with or without legal personality, providers of public, state or private services, preventive, curative, recovery and emergency human health care. The health services of the medical offices are performed by general practitioners – family doctors, dentists, specialists and other categories of authorized medical staff. In private medical practice, the titular doctor exercises his profession, who may have as employees collaborating doctors or any other category of staff;

Working capital – the difference between a company’s current assets and current debts;

Working capital grant – direct grant granted to the beneficiaries of state aid in the form of a lump sum representing 15% of the turnover registered in 2019;

Grant for productive investments – grant granted to state aid beneficiaries from non-reimbursable external funds for making the necessary investments for the expansion/ rehabilitation/modernization of existing production capacities, the realization of new production capacities, the purchase of equipment, machinery and installations, as well as for the modernization, rehabilitation, expansion of existing buildings or the purchase of buildings intended for new production activities, including for the purchase of land necessary for investments, up to a limit of 10% of the value of projects subject to financing applications;

SME – the enterprises established on the basis of the Companies Law no. 31/1990, republished, with subsequent amendments and completions, or based on Law no. 1/2005 regarding the organization and functioning of the cooperation, republished, with the subsequent modifications, or based on the Government Emergency Ordinance no. 6/2011 for stimulating the establishment and development of micro-enterprises by start-up entrepreneurs in business, approved with amendments by Law no. 301/2011, with subsequent amendments and completions, which have less than 250 employees and a net annual turnover that does not exceed the RON equivalent of 43 million euros;

Microgrant – a direct grant of EUR 2,000 granted in the form of a lump sum to State aid beneficiaries considered vulnerable to the risk of spreading the SARS-CoV-2 virus;

Registered sole trader – economic enterprise, without legal personality, organized by an individual who mainly uses his labor force;
Creative industries – industries that originate in the creativity, talent and mastery of individuals and that have the potential to create jobs and prosperity by generating and exploiting intellectual property.


1.    Microgrants
have a value of EUR 2,000 and are granted once, in the form of a lump sum, on a contractual basis, to the following categories of beneficiaries:

a) small and medium-sized enterprises that prove by their financial statements that they do not have employees with an individual employment contract as of December 31, 2019;

b) Registered sole traders, NGOs with economic activity in one of the fields of activity provided in annex no. 1 of the normative act;

c) Registered sole trader/Private medical practice, if they were involved in the transport, equipping, evaluation, diagnosis and treatment of patients diagnosed with COVID-19, who did not benefit from the medical incentive granted based on Government Emergency Ordinance no. 43/2020 for the approval of some support measures settled from European funds, as a result of the spread of the coronavirus COVID-19, during the state of emergency, approved with modifications and completions by Law no. 82/2020. Proof of involvement in activities related to COVID-19, but also for not granting the medical incentive is done by filling out a form attached to the application for funding issued by the health unit where the service was provided by the beneficiary/county public health directorate, as appropriate, which will be established at the level of the Applicant’s Guide.

Micro-grants are awarded to beneficiaries who meet the following cumulative conditions:

a) carried out current / operational activity for at least one calendar year before the date of submission of the funding application, except for the Registered sole trader/Private medical practice for which the start of the activity may have taken place until 1 February 2020;

b) obtained a turnover in the financial year prior to the submission of the financing application of at least the equivalent in lei of 5,000 euros at the date of submission of the financing application, except for the beneficiaries of the state aid provided in art. 5 letter b) and c);

c) they shall maintain their activity for a period of at least 6 months from the granting of the form of support in the form of microgrant.

Microgrants can be used to support expenses such as:

a) expenses regarding stocks of raw materials, materials, goods, as well as other categories of stocks necessary for the current/operational activity carried out by the beneficiaries;

b) curent debts and datorii curente și restante față de furnizorii curenți, inclusiv față de furnizorii de utilități potrivit contractelor încheiate;

c) rental expenses based on a concluded contract;

d) expenditure on the procurement of services and repairs required for the day-to-day business, excluding consultancy, studies studies and other categories of indirect services with the current activity;

e) expenditure on medical protective equipment, including disinfection materials for protection against the spread of SARS-CoV-2 virus;

f) expenses related to the acquisition of inventory items, including inventory items in the nature of fixed assets necessary for the resumption of the current activity;

g) expenses regarding the acquisition of equipment, machinery, installations, technologies, independent endowments necessary for the resumption of the activity;

h) expenses regarding the payment of debts to the state budget.

2.    The grants for working capital granted to beneficiaries are allocated from non-reimbursable external funds, in the form of a percentage share of turnover, based on a contract, to SMEs in the fields of activity: restaurants, hotels, coffee shops, food industry and other similar activities, services in the field of transport, travel agencies, publishing houses/ bookstores/libraries, creative industries, as well as event organizations whose current activity has been affected by the spread of SARS- CoV-2 or whose activity has been banned or reduced by military ordinances during the state of emergency and/or during the state of alert. The list of eligible fields of activity is provided in annex no. 2 to the normative act. Working capital grants are also awarded to NGOs with economic activity in the field of education.

Grants for working capital are granted to beneficiaries who cumulatively meet the following conditions:

a) they obtained a certificate of emergency situations based on the Government Emergency Ordinance no. 29/2020 on some economic and fiscal-budgetary measures, with subsequent amendments;

b) they recorded an operating profit from the current activity (from the operating activity), in one of the last two financial years before submitting the grant application for obtaining the grant, according to the submitted financial statements;

c) they have co-participation in the establishment of working capital in a percentage of at least 15% of the value of the grant at the date of use of the working capital grant;

d) they maintain or, as the case may be, supplement the number of employees, from the date of submission of the application, for a period of at least 6 months, on the date of granting the grants, except in cases where individual employment contracts are concluded for seasonal and/or day laborers.

Working capital grants can be used for the following types of expenses:

a) expenses regarding stocks of raw materials, materials, goods, as well as other categories of stocks necessary for the current/operational activity carried out by the beneficiaries;

b) current and outstanding debts to current suppliers, including utility providers, according to concluded contracts;

c) expenses regarding the rent based on a concluded contract;

d) expenditure on the procurement of services required for the day-to-day business, excluding consultancy services, studies and other indirect services;

e) expenditure on medical protective equipment, including disinfection materials for protection against the spread of SARS-CoV-2 virus;

f) expenses related to the acquisition of inventory items, including inventory items in the nature of fixed assets necessary to resume the current activity;

g) expenses regarding the acquisition of equipment, machinery, installations, technologies, independent endowments necessary for the resumption of the activity;

h) expenses regarding the payment of debts to the state budget.

The amount of support from external non-reimbursable working capital is determined as follows:

a) for SMEs with a turnover for 2019 between 5,000 and 13,500 euros, the value of the grant is 2,000 euros;

b) for SMEs with a turnover for 2019 between 13,501 and 1,000,000 euros, the amount of the grant is set at 15% of turnover and can not exceed the amount of 150,000 euros. for SMEs with a turnover for 2019 between 13,501 and 1,000,000 euros, the amount of the grant is set at 15% of turnover and can not exceed the amount of 150,000 euros.

If a planned State aid beneficiary belongs to the category of related enterprises and has submitted several applications for financing to obtain the necessary working capital grant, the cumulative amount of the working capital grant to be granted may not exceed the equivalent in lei for EUR 250,000 on the date of payment of the working capital grant. If a beneficiary of State aid with the status of a related enterprise does not fall into the category of SMEs and has submitted a single application for financing, the amount of the working capital grant may not exceed EUR 150,000 at the time of payment of the grant.

3.    Investment grants represent support from external non-reimbursable funds intended for the beneficiaries who implement investments in the current field of activity or in a different field of activity, necessary for:

a)    expanding existing production capacity, as well as expanding service capacity;

b)    the development of new units of existing production capacities, as well as the development of new service units;

c)    rehabilitation/modernization of existing production units, as well as for the rehabilitation/modernization of new service units.

Investment grants are awarded per project and per beneficiary and have a value between 50,000 euros and 200,000 euros, depending on the financing needs of the submitted investment projects.

The total budget for investment grants, excluding the beneficiaries’ own co-financing, is distributed by development regions of Romania, as follows:

a) 15% of the value of the budget allocated from non-reimbursable external funds for the Bucharest-Ilfov region as a more developed region;

b) 85% of the value of the budget allocated from non-reimbursable external funds for the other 7 less developed regions, by using the allocation formula within the Regional Operational Program 2014-2020.

Investment grants do not include the co-financing of the beneficiaries set at a percentage of at least 15% of the value of the grant requested by the beneficiaries from the less developed regions and 30% of the value of the grant requested by the beneficiaries from the Bucharest-Ilfov region.

The list of eligible fields of activity is provided in annex no. 3 to the normative act.

Investment grants are awarded to beneficiaries who cumulatively meet the following conditions:

a) they had current/operational activity carried out for at least one year before submitting the financing application;

b) recorded an operational profit from the current activity, respectively from the operating activity in one of the financial years of the last 2 years before the submission of the financing application;

c) undertakes to ensure the sustainability of the project, respectively to ensure the development of the operational/current activity for a period of at least 3 years after the expiration of the project implementation period;

d) achieves at least 50% of the value of the revenues planned within the business plan annexed to the financing application in the first 2 years of sustainability, and the difference until the end of the sustainability period, respectively the third year;

e) have their own co-financing of the project as a percentage of at least 15% of the value of the investment project requested for financing for the less developed regions, and for the Bucharest-Ilfov region, of at least 30% of the value of the project requested for financing;

f) undertakes to provide evidence of the reasonableness of the costs for investments for which State aid is requested.

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