We pay close attention to the measures that the state is trying to take in order to save the Bulgarian business from the crisis caused by the coronavirus outbreak.
In this regard, we want to share with you that on 11 May 2020 a new grant scheme for supporting micro and small enterprises in overcoming the economic impact of the COVID-19 pandemic is supposed to be announced. The purpose of the procedure is to provide operational capital for those companies.
For your convenience, we present you with a summary of the programme and the application conditions in the form of questions and answers.
- What shall be the amount of the grant for the companies?
The aid will amount between BGN 3,000 and BGN 10,000, but no more than 10% of the net sales revenue for 2019.
- Will all enterprises applying for the grant receive it?
No, grant payments will only be received by the companies that first submitted applications compliant with the terms of the programme. Grants will be awarded until the financial resources of the programme have been exhausted.
- Which entities can apply for the aid?
To participate in the program are allowed only legal persons or sole proprietors registered under the Commerce Act or the Cooperations Act, meeting the following conditions simultaneously:
- Are registered prior to 1 July 2019 and were engaged in business activity;
- Do not operate in the economic sectors covered by the Rural Development Programme;
- Represent a micro-enterprise (i.e. have a weighted average number of staff of less than 10 persons, and an annual turnover not exceeding BGN 3 900 000 and/or an asset value not exceeding BGN 3 900 000) or a small enterprise (i.e. having a weighted average number of staff of less than 50 persons and an annual turnover not exceeding BGN 19 500 000 and/or an asset value not exceeding BGN 19 500 000);
- Have a decrease of at least 20% in the turnover for April 2020 compared to the average monthly turnover in 2019;
- Have sales revenue of at least BGN 30,000 for 2019;
- Have submitted their tax declaration for 2019 with the National Revenue Agency;
- Are/have not: (i) in bankruptcy proceedings; (ii) declared bankrupt; (iii) in a winding-up procedure; (iv) ceased operations; (v) deprived of the right to pursue a particular profession or activity; (vi) concluded an agreement with other persons with a view to distorting competition; (vii) guilty of failure to perform a public contract or contract for a works or service concession; (viii) with established tax liabilities and compulsory social security contributions exceeding by 1% the amount of annual total turnover for the last completed financial year or more than BGN 50,000; (ix) in breach of an order issued by the European Commission to recover unlawful State aid granted to them; (x) unlawfully interfered with the aid application procedure; (xi) represented by persons convicted for certain crimes; (xii) establishments engaged in the processing and/or marketing of forestry products, and engaged in the production of certain types of food or drink.
- What expenses will be deemed eligible under the programme?
Expenditures on raw materials, supplies, consumables, external services and personnel incurred after 13 March 2020 will be eligible under the operational program.
- What is the deadline for applying for the aid?
The deadline for submission of applications is expected to be 16:30 hours on 10 June 2020.
- For what period will companies be able to rely on the aid?
The aid will be granted for a period of up to 3 months from the date on which the administrative contract has come into force.
- How will be aid applications submitted?
Submission of applications shall be made entirely by electronic means by filling in a web-based application form and submitting the form and accompanying documents using a valid qualified electronic signature issued by a provider of qualified electronic certification services.
We shall inform you as soon as the programme, along with its final conditions, is published.
If you need assistance under the grant scheme – from the assessment of whether your business can apply for it, through preparation and submission of the necessary documents, to following up on the course of the entire procedure – do not hesitate to contact us.