Mitigating the COVID-19 pandemic & consequences to prepare for a green resilient economic recovery
About this good practice
The program “Support the mitigation of 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” was implemented by the Ministry of Investments and European Projects in partnership with the Agencies for Small and Medium Enterprises, Investment Attraction and Export Promotion.
Action 4.1.1 Investments in productive activities (maximum of 200.000EUR)
The action aims at investments in SMEs in the current field of activity or in a different field of activity, necessary for:
• expanding existing production capacity /service provision;
• the construction of new units of existing production capacity or for the provision of services;
• rehabilitation / modernization of existing production units or of new service units.
For the investments proposed in this action, the beneficiaries will allocate a budget of at least 20% which will contribute to the achievement of the climate objectives.
This action will also take into account the development of new markets that will contribute to the improvement of the energy and environmental performance of built assets, the development and adoption of green technological solutions and the support of the circular economy.
Action 4.1.2 Working capital support (maximum of 15% of the turnover for 2019)
The action aims to support SMEs to support their day-to-day activities by providing grants for working capital in the form of a lump sum.
Resources needed
The budget allocated for this call is: 597,308,006.07 euros, divided into the 2 support measures, as follows:
Investments in productive activities - 358,384,803.64EUR;
Working capital support, in the form of a unit cost - 238,923,202.43EUR.
Evidence of success
The reaction of the business environment to these measures shows the acute need for support that the business environment needs to overcome this conglomeration of crises that affect the entire economic ecosystem. Given the high interest of SMEs in these economic support and recovery measures, it follows that SMEs continue to need grants from non-reimbursable external funds for investments in technologies, in order to restore resilience.
Potential for learning or transfer
As the COVID-19 crisis has affected SMEs at European level (and even worldwide), we consider that all measures taken to support the recovery of this SMEs and their further economic development are welcome. Thus, every region can and should learn from this program aiming to strengthening the market position of SMEs affected by the COVID-19 pandemic by supporting the capacity of SMEs to grow in regional, national and international markets and to engage in innovation processes.
Transferable practices for other regions include:
- Creating opportunities for SMEs in order to facilitate their development and access of SMEs to foreign markets as well as reducing the market gap:
- The strong commitment to collaboration and a joined-up offer from public authorities and decision makers.
Good practice owner
You can contact the good practice owner below for more detailed information.
South Muntenia Regional Development Agency