BGN 50 000 GRANT FOR SMALL ENTERPRISES WITH A TURNOVER OF MORE THAN BGN 500 000

The trend of a sharp increase in the number of newly infected people with COVID-19 worldwide in recent weeks has once again put the issue of how businesses are addressing the challenges of the pandemic on the agenda. In this context, we would like to inform you that a new support programme for small businesses with a turnover of more than 500 000 BGN is expected to be opened shortly to address the economic impact of the COVID-19 pandemic. At this stage, only the preliminary conditions of the programme are known.

For your convenience, we present them to you in a summary in the form of questions and answers:

1. What will be the amount of grant for enterprises?

The grant will amount to BGN 50 000.

2. Who can apply for the aid?

Only legal entities or sole traders registered under the Commercial Act or the Cooperatives Act that meet both the following conditions are eligible for the programme:

– They have at least two completed financial years (2018 and 2019) within which they have carried out business activities;

– They have realised a turnover for 2019 of at least BGN 500 000;

– Are a small enterprise (i.e. have an average number of employees of less than 50 and an annual turnover not exceeding BGN 19 500 000 and/or an asset value not exceeding BGN 19 500 000);

– They have registered a total of three, selected by them months in the period from 01.02.2020 to the month preceding the month of application, an arithmetic average decrease of at least 20% compared to the arithmetic average turnover for the same three months in 2019;

– Are not: (i) in insolvency proceedings; (ii) declared bankrupt; (iii) undergoing liquidation proceedings; (iv) have ceased their activity; (v) have been disqualified from exercising a particular profession or activity; (vi) have entered into an agreement with other persons for the purpose of distorting competition, established in accordance with the relevant procedure; (vii) guilty of non-performance of a public procurement contract or a concession contract for works or services; (viii) with established tax and compulsory social security contributions liabilities exceeding by 1% the amount of the annual total turnover for the last completed financial year or more than BGN 50 000.; ix) in breach of an order of the European Commission to recover unlawful and incompatible State aid granted to them; x) illegally involved in the procedure for applying for the aid, established in accordance with the relevant procedure; xi) represented by persons convicted of certain criminal offences; xii) enterprises engaged in activities for the processing and/or marketing of forestry products, as well as enterprises engaged in the production of certain types of food products or beverages, as well as enterprises applying for the financing of an economic activity falling within the financial sector.

3. How do I apply for the aid?

Applications are submitted entirely electronically by filling in a web-based application form and submitting the form and supporting documents using a valid qualified electronic signature issued by a qualified electronic certification service provider. The application shall be accompanied by additional documents establishing compliance with the eligibility requirements.

4. How will project proposals be evaluated?

Project proposals will be evaluated on various criteria, including EBITDA (earnings before interest, taxes, depreciation and amortization) profitability ratios for 2018 and 2019, tax costs relative to revenue generated for 2018 and 2019, etc. The projects receiving the highest number of points are proposed in order of ranking until the budget amount for the respective sector is covered.

5. When will the funds be received?

Disbursement of the grant under this procedure is foreseen to take place within 15 working days from the date of conclusion of the administrative contract. In order for the contract to be concluded, the project proposal must have passed the technical and financial evaluation and have obtained the required number of points.

6. What will be the eligible activities to be financed under the programme?

Within the framework of the Operational Programme, expenditure on raw materials, consumables and supplies, on remuneration for external services and on staff costs incurred after 01.02.2020 until the end of project implementation will be considered eligible.

7. Are there costs that will be ineligible under the programme?

Yes, among the costs that will be considered ineligible under the programme are those for: i) acquisition of tangible and intangible fixed assets; ii) acquisition of goods held for sale; iii) taxes and fees; iv) repayment of loans, interest on loans, bank charges; v) lease payments; vi) raw materials, second-hand materials and consumables, etc.

8. Is there any way I can improve my company’s chances of getting the grant?

Yes. It is important that the project proposal is submitted to the Operational Programme system as soon as possible after the opening of the programme. To this end, all documents required for the application must be prepared, completed and signed in advance in accordance with the requirements of the procedure. Our team has developed a detailed questionnaire on the basis of which to prepare everything necessary before the procedure is opened.

Should you need assistance in obtaining assistance under the programme – from assessing whether your business is eligible, to preparing and submitting the necessary documents, to following the progress of the entire procedure – do not hesitate to contact us. We will send you the questionnaire and apply for the grant for your company.