Discover the Top 2023 Financing Options for Romanian Small Businesses

In 2023, Romanian small business owners will have access to a range of financing options, including European funds, state budget allocations, and bank loans. These resources will provide support for micro, small, and medium-sized enterprises (SMEs) to grow and thrive.

1. Non-IT SME Digitization Program

Small businesses in Romania have until March 31st, 2023 at 24:00 to submit their projects to the PNRR electronic system. The submission period starts on February 1st, 2023 at 10:00.

The Romanian Non-IT SME Digitization Program is designed to aid micro, small, and medium-sized businesses in their digitization efforts. Eligible enterprises can receive grants ranging from 20,000 to 100,000 euros to upgrade their IT infrastructure, including the purchase of computers and other technology, investment in software, cloud services, and employee training programs. This initiative is funded through the National Recovery and Resilience Plan, with a total budget of 347.5 million euros.

The Applicant’s Guide can be downloaded from Here: https://mfe.gov.ro/ghidul-specific-conditii-de-accesare-a-fondurilor-europene-aferente-planului-national-de-redresare-si-rezilienta-in-cadrul-apelului-de-proiecte-digitalizarea-imm-urilor-grant-de-pana-la-100-000-e/

2. State aid scheme in the context of digitalisation, for IT SMEs

A sum of EUR 150 million from the National Recovery and Resilience Plan (PNRR) has been earmarked for IT SMEs in the form of financial aid. Entrepreneurs in this sector can receive grants to help them advance in cutting-edge digital technologies like AI, cloud computing, blockchain, high-performance computing, IoT, and cybersecurity.

The enrollment process for IT companies to participate in the PNRR initiative is yet to be launched by MIPE. The applicant’s guide has not been made available, and no announcement has been made regarding the registration period.

3. Minimis aid for SMEs listed on the Stock Exchange

Secure your place in the PNRR system by registering during the set time frame from 27th February 2023 at 10 AM to 27th May 2023 at 24:00 PM – first come, first served principle applies.

Download the draft Guide of the applicant, issued by the Ministry of Investments and European Projects:https://mfe.gov.ro/pnrr-proiectul-de-ghid-aferent-instrumentului-de-grant-pentru-listarea-la-bursa-a-intreprinderilor-in-consultare-publica/

In this money, two types of grants will be provided as follows:

SMEs listed on the Bucharest Stock Exchange’s AeRO market can receive up to 25,000 euros, with a 4% grant from the listing offer value.
Enterprises listed on the Main Market of the Bucharest Stock Exchange can access financing through an initial public offering (IPO) and receive a grant of up to EUR 200,000, equivalent to 3.5% of the IPO value. This market is designed for large companies.

4. Support for micro-enterprises through Regional Programmes

In 2023, funding opportunities similar to the previous programming period will be available from the new European funds 2021-2027 for micro-enterprises. As with the Regional Operational Programme (ROP 2.1-micro), micro-enterprises will be able to receive grants of up to EUR 200,000. However, there are now 8 regional programs, each managed by a managing authority, one per region.

The West Regional Development Agency (RDA) was the first to announce a draft grant scheme for micro-enterprises. This funding opportunity has a budget of EUR 20 million and aims to support at least 100 companies located in the four eligible counties of Timiș, Arad, Hunedoara, and Caraș-Severin.

Micro-enterprises in urban areas have the opportunity to access one of the two grant options available through the allocation of funds as follows:

Micro-enterprises in urban areas can receive grants ranging from 30,000 to 200,000 EUR, based on their income related to the NACE class they seek financing for. If their income from this class was 30% or more of their 2022 turnover, they can receive a grant of 30,000 to 200,000 EUR. However, if their income was less than 30% of the turnover, they can receive a grant of 30,000 to 60,000 EUR.

The official guide for the funding opportunity will be released by the West Regional Development Agency in March 2023 and will be available on their website. Entrepreneurs will have to provide a co-financing contribution between 10% to 24%, based on the county. The call for projects will be opened in the MySMIS2021 system, which is managed by STS, after the official publication of the guide. The situation for funding opportunities in the remaining counties will be monitored.

5. SME grants for just transition

The Ministry of Investments and European Projects has announced the allocation of 700 million euros through the Just Transition Program 2021-2027 for supporting startups, micro, small, and medium-sized enterprises. The funds will be made available through 2 calls for projects:

Grants of 200,000-2 million euros each.
Grants of 2-5 million euros each.

The Just Transition Program 2021-2027 will allocate 700 million euros for startups, micro, small, and medium-sized companies through 2 calls for projects. According to officials from MIPE, these funds will be aimed at assisting 6 mining and industrial counties affected by measures aimed at reducing pollution: Hunedoara, Gorj, Dolj, Galați, Prahova, and Mureș. The guides are expected to be released in January 2023 for public review, and the submission of projects will open in April.

6. Microindustrialization Program 2023

The Microindustrialization Program has a total budget of 85 million lei in commitment appropriations and 85 million lei in budget appropriations. This budget will be used to facilitate the registration, selection, contract signing and payment process for the winners. The program offers state-funded non-repayable grants of up to 100,000 euros to small factories. However, the program was not implemented in 2022.

The launching of the program falls under the jurisdiction of the Ministry of Entrepreneurship and Tourism (MAT). All the guidelines and regulations of the program will be made available on the MAT’s official website, following which the registration process is expected to commence via the SME Recover Grants portal.

7. Trade-Services Program 2023

For the marketing development program of market products and services, a budget of 74,500,000 lei has been allocated for both commitment appropriations and budget appropriations in 2023. This budget allocation makes it possible to start the process of registration, selection, contract awarding, and payment to the successful participants. The same program was budgeted in 2022, however, it failed to launch.

Under the Trade-Services Program, Romanian small and medium enterprises (SMEs) with a proven market presence can receive non-repayable funding from the state, with a maximum amount of 50,000 EUR per enterprise. The implementation procedure should be made public on the website of the Ministry of Entrepreneurship and Tourism (MAT), following which the SMEs can register for the funding via the SME Recover Grants portal.

8. SME funds in spas

The national program aimed at promoting the creation, growth, and promotion of industry brands, as well as providing support to business operators for the modernization and expansion of spa and spa resorts through de minimis aid, has secured a budget of 15,000,000 lei in 2023.

The de minimis aid program is designed to assist business operators in modernizing and enhancing spa and resort facilities through investments in touristic, cultural, sports, leisure, and spa infrastructure, as well as to cover the costs associated with professional training for staff in the hospitality, food service, and entertainment industry.

The plan for the de minimis aid scheme was drafted in 2022, yet funding has yet to be made available. According to the proposal, eligible businesses can receive de minimis aid of up to 200,000 euros each with a coverage rate of up to 50% of eligible expenses. The Ministry of Entrepreneurship and Tourism (MAT) is responsible for launching the procedure and opening the registration period.

9. Small business loans

Aside from grants from public programs, small businesses also have access to loans from private banks. One such option for small companies is BT Mic, a subsidiary of the Banca Transilvania Financial Group, which offers loans of up to 200,000 lei to small businesses.

To be eligible for the loans, applicant companies must meet certain criteria, such as having been in operation for at least 3 months. The loans are provided with public guarantees under the European Union’s EaSI program. Interested companies can apply online through the BT Mic website.

10. Investment funds supported by PNRR

In addition to other financing options, Romanian startups and small- to medium-sized companies can secure funding through investment rounds with venture capital funds in exchange for equity. The Ministry of Investment and European Projects, in collaboration with the European Investment Fund, launched a call for proposals in 2022 to secure EU funds amounting to 400 million euros, with the aim of capitalizing around 20 private investment funds.

Starting in 2023, venture capital funds are expected to be selected and ready to provide financing to Romanian businesses. These funds will be able to make investments by 2026, with the initial funds expected to become available on the market as early as 2023 using funds from the PNRR.

The 20 investment funds will provide funding to 100 Romanian startups and other companies through investment rounds, using PNRR financing of 400 million euros and contributions from private investors as follows: