Investments in productive activities

By project RECREATE

Published on 03 August 2022

Romania

About this good practice

The Covid-19 pandemic has caused serious economic losses to all SMEs. By applying movement restrictions to reduce contact between people, almost all SME employees were forced to stay at home, with no work at all, given that these small companies do not have the resources and IT equipment / servers to allow the instant switch to teleworking. Irrecoverable losses of hundreds of thousands of Euros were accumulated in SMEs.
In August 2021, the Romanian Government established a scheme called “Investments in productive activities” to provide funding support to Romanian businesses of different sizes affected by the Coronavirus pandemic, under Priority Axis 4.
The aim of the scheme is to mitigate the effects of the crisis in the context of the COVID-19 pandemic and its social consequences and prepare for a green, digital and resilient economic recovery by supporting SMEs affected by the pandemic to grow in regional, national and international markets and engage in innovation processes.

The scheme offers non-reimbursable financing of up to € 1,000,000 to SMEs operating in several sectors, including Transport, particularly affected by the epidemic.

According to the scheme guide, transport-related SMEs that belong to the Romanian eligible Class H – Transportation and warehousing, are eligible for financing as follows:
1. Expenditures for the modernization of production / service spaces
2. Consulting expenses
3. Core investment expenses (e.g., equipment, machinery etc).

Resources needed

The allocated budget for this call is €358,384,803, of which Euro 300,000,000 funded by REACT - EU ERDF through POC 2014-2020 and the remaining €58,384,803 funded by the Romanian Government.

Evidence of success

A large number of applications were submitted (over 1600 projects). More details and information of implemented projects are expected. The support scheme was prepared and adjusted to suit the SMEs’ requirements and difficulties.
All sectors received grants, including transport.

Potential for learning or transfer

The scheme is open to businesses to support them to access funding to recover after the pandemic, but also help them prepare their transition towards a green, digital and resilient economy by funding targeted and defined types of costs. Although hard evidence is not yet available, there is widespread acceptance that the schemes have helped many businesses to survive the challenges of the pandemic, but also innovate.