GRANTS FOR MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES BETWEEN BGN 3 000 AND BGN 75 000

The upcoming opening of a grant procedure under the Operational Programme “Innovation and Competitiveness” 2014-2020 aims to support the reorganisation and adaptation in the context of the COVID-19 epidemic of micro, small and medium-sized enterprises in the country. In particular, the funding aims to create a safe and responsive working environment in companies.

At this stage, the preliminary conditions of the programme are known. For your convenience, we present them in summary form in the form of questions and answers:

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

The amount of the grant will vary from one category of enterprise to another. Specifically, it will be:

• From BGN 3 000 to BGN 15 000 for micro-enterprises;
• From BGN 10 000 to BGN 30 000 – for small enterprises;
• From BGN 25 000 to BGN 75 000 – for medium-sized enterprises.

2. Is co-financing required from applicants?

Yes. The maximum intensity of the grant is 70 %, with the balance of the total eligible project costs to be co-financed by the applicant’s own funds or by funds from external sources which exclude any public support.

3. What other application requirements does the programme have?

Applicants must:

• Have one completed fiscal year (2019) in which they have conducted business and generated net sales revenue, depending on the category of applicant business, as follows:
• At least BGN 30 000 – for micro enterprises;
• At least BGN 200 000 for a small enterprise;
• At least BGN 1 000 000 for a medium-sized enterprise;
• Apply for financial support for their main economic activity only.

4. How do I apply for the aid?

Applications are submitted entirely electronically using a qualified electronic signature.

5. How will project proposals be evaluated?

Project proposals will be evaluated according to various criteria, including EBITDA (earnings before interest, taxes, depreciation and amortization) profitability ratios for 2018 and 2019, tax expenditures relative to realized revenues for 2018 and 2019, and justification of a direct link between the COVID-19 pandemic and the need to implement the planned activities.

The projects receiving the highest number of points are proposed in order of ranking until the budget amount for the respective sector is covered.

6. When will the funds be received?

Payment of the grant under this procedure is foreseen to be made as a final payment of the total amount of the total confirmed expenditure. It will be made after approval of the final project report accompanied by a request for payment in conformity. In other words, part of the costs incurred by each applicant will be reimbursable according to the co-financing rate set under the programme.

There is also the possibility of pre-financing up to 40% of the total grant. This is subject to the beneficiary providing a bank performance guarantee covering the full amount of the advance requested.

7. What will be the eligible costs under the programme?

Within the framework of the Operational Programme the following costs will be considered eligible:

• Remote working facilities through – Remote access hardware and software (e.g.: computers, servers, remote working reporting software, etc.);
• Collective safeguards (e.g.: thermometers, thermal cameras, air purifiers, automatic dispensers, etc.);
• Provide physical isolation/safe distance in the workplace (e.g.: placing barriers, repositioning production machinery and equipment, etc.);
• Segregating separate traffic flows (e.g.: new entrance/exit and providing non-contact passage between individual rooms by installing automatic doors/automatic lighting, etc.);
• Air conditioning and ventilation, installing new or additional filters on existing ventilation and air conditioning systems, introducing an air quality monitoring system;

If you need assistance in obtaining assistance under the programme – from assessing whether your business can benefit from it, through preparing and submitting the necessary documents, to following the entire process – do not hesitate to contact us.

We will send you a detailed questionnaire on the basis of which we will prepare all the necessary documents for a successful application for the aid.