Financial support for small and medium-sized enterprises in Romania affected by the coronavirus pandemic

The European Commission has just approved a Romanian financial scheme worth 358 million euros to support small and medium-sized enterprises affected by the coronavirus pandemic and counteract the restrictive measures that the Romanian government had to implement to limit the spread of the virus.

This type of public support was approved under the State aid framework. Under the scheme, the aid will take the form of direct subsidies for investments in productive activities. In this area, the subsidies will go up to a maximum amount of 1 million euros (RON 4.9343 million) per single beneficiary.

The scheme will be open to small and medium enterprises operating in sectors particularly affected by the coronavirus outbreak. Among the sectors that will be able to apply are both wholesale and retail. In order to be eligible, the companies must have been established in Romania by December 31st of 2018 and must have recorded operating profits during 2019.

The mentioned scheme is expected to benefit around 4,000 companies. The Commission found that the Romanian scheme complies with the conditions stipulated in the Temporary Framework and will be granted until December 31st, 2021. The mentioned EU Commission concluded that this measure is necessary, as well as appropriate, and proportionate to remedy a serious disturbance in the economy of Romania as a Member State of the EU.