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A New Hope – Government Emergency Ordinance for granting financial aid from external non-refundable sources published in the Official Gazette

Government Emergency Ordinance 130/2020 was published in the Official Gazette no. 705 from 6 August (the GMO) with the aim to regulate the provision of financial aid to the players most affected by the Covid-19 crisis, namely authorised individuals (Romanian persoane fizice autorizate) and SMEs, all within the frame provided by the general EU legislation regulating state aid.

The non-refundable financial aid may be granted in three forms:

i. Micro-grants up of EUR 2,000, to be provided to authorised individuals and NGOs

The beneficiaries should be active in certain economic fields such as printing, editing, cinema, editing, jewelry production, so on and so forth, laid down in Annex 1 to the GMO

ii. Grants for working capital to be provided to certain SMEs

For SMEs with a turnover between EUR 5,000 and EUR 13,500 in 2019, the grant will be a lump sum of EUR 2,000.

For SMEs with a turnover between EUR 13,500 and EUR 1 million, the grant will be of 15% of the turnover but not more than EUR 150,000.

iii. Investment grants for SMEs

Such grants are provided to SMEs for extending their existing production capacities/service facilities, building new capacities or rehabilitation/modernisation of existing capacities. The amount is between EUR 50,000 and EUR 200,000, depending of financing needs as stemming from the projects submitted. The economic realms in which the beneficiaries are active are, inter alia food industry, automotive, energy, construction, transport, hospitality, so on and so forth.

RTPR team is keen to provide further information on any of these topics, upon request.

*This ePublication is provided by Radu Taracila Padurari Retevoescu SCA and is for information purposes only. It does not constitute legal advice or an offer for legal services. The distribution of this document does not create an attorney−client relationship. If you require advice on any of the matters raised in this document, please call your usual contact at Radu Taracila Padurari Retevoescu SCA at +40 31 405 7777.