Working capital support for micro, small and medium enterprises

17.12.2020

WHICH BUSINESSES CAN RECEIVE AID OF UP TO 20% OF TURNOVER

New aid of BGN 156 million, provided by the Operational Program "Innovation and Competitiveness", will help micro, small and medium enterprises that are affected by the temporary anti-epidemic measures in the country and have been forced to suspend or limit their activities, such as shops and restaurants in malls, cafes and restaurants, nightclubs, private kindergartens and centers, which were forcibly closed in November this year. They must have up to 250 employees and be registered before 1 October 2020.

The aid will be paid for the period based on the two orders of the Minister of Health, one is in the period 14-30 November, and the scope of the second order is 27 November - 21 December. It is possible that the company falls within the period of both orders - from November 14 to December 21.

The closed shops in the shopping malls and the malls themselves, which are run by medium-sized enterprises, will be supported by 10%. The rest, for example restaurants and bars, are in the range of 20% of turnover.

There is an exception for businesses participating in the rural development, fisheries and aquaculture Program, financial sector companies, companies that engage in gambling or produce and trade in tobacco.

The aid amounts to BGN 150,000 per enterprise, and the costs for water, electricity, rent, purchase of raw materials will be eligible, but not for salaries or purchase of goods to be resold. Each company can apply with one project, but for all its sites. The application period is two weeks, and for payment one week, with the condition that the payment can start only after approval by the European Commission (EC), as the used 156 million BGN are under OP "Innovation and Competitiveness".

The aid will be calculated on the basis of a percentage of the turnover reported during the period of discontinued operation, and for those registered in 2020, the basis will be the turnover for October this year. Documents can be submitted entirely electronically, on the electronic services portal of the National Revenue Agency, and for this purpose you will only need an electronic signature. Applications will be able to be submitted from December 21 (Monday), and the deadline for this is 14 days from that date. The NRA will make automated inspections and, if necessary, will be checked after the payment of the funds.

Companies currently benefiting from other support measures, including 60/40 and 80/20, can apply for this program but cannot cover salary costs.

The NRA clarified that the companies should indicate the amount of their turnover without VAT included in it, and for the entire amount will be needed - cash turnover and bank transactions, as the combination of the two components will represent the sum of the company's turnover, which will be charge 10 or 20% respectively.