28.05.2020
THE STATE OFFERS A NEW GRANT FOR COMPANIES - FROM 30 TO 100 THOUSAND LEVS
The state has announced a new business grant scheme - this time for larger companies. The minimum amount of grants will be BGN 30,000 and the maximum amount is BGN 100,000, and the specific amount will be 1% of the annual turnover for 2019. The total budget of this measure is BGN 156 million and is provided by the budget of the Operational Program Innovation and Competitiveness. However, companies that have received 60/40 payments or other staff retention support will not be able to benefit from this assistance.
Like the procedure for supporting micro and small companies, this one will be conducted entirely electronically - through the Information System for Management and Monitoring of EU Funds in Bulgaria (UMIS 2020). So far, no specific date has been announced on which the application scheme will be opened, but proposals and comments on the documentation will be accepted until May 29, which means that it is realistic for companies to be able to apply for aid in the first week of June.
The Managing Authority of the Innovation and Competitiveness Operational Program also announced that a total of 24,087 applications worth over BGN 197 million had been received under the procedure for micro and small companies. The opportunity to apply is still open, as the initial budget of BGN 173 million will be increased. Official inspections of the applications submitted to the National Revenue Agency, the National Statistical Institute, the Executive Agency "General Labor Inspectorate" and other institutions and agencies are currently being carried out. After receiving and processing the information, we will proceed to the gradual sending of notifications to the applicants for elimination of the established irregularities", they say from OPIC and point out that after the evaluation the list of the approved candidates will be published on the Internet to take place in early June at the latest.
Who will be able to apply
Only companies that are classified as medium-sized enterprises will be able to apply for grants from BGN 30 to 100 thousand - they have a minimum of BGN 3 million and a maximum of BGN 50 million net sales revenues for 2019. Also must be registered by 31 December 2018, which means that the aid will not be available for newer companies.
It is a mandatory condition that applicants have registered a decrease of at least 20% in turnover (net sales revenue) for one of the calendar months in the period from February 1, 2020 to the month preceding the application, compared to the average monthly in 2019. For example, if applying in June, it will be possible to take the turnover for February, March, April or May and compare it with the average for last year. A statement of income and expenditure for the month will be required to verify this information.
An extremely important condition for receiving the grant is that the companies are not in a situation of "difficulty", which means that they must not have accumulated a loss for the last three years that exceeds 50% of their equity. For companies with a registered capital of BGN 2, this means that even BGN 1 uncovered loss will disqualify them.
In order to avoid duplication of subsidies, all companies that can receive funding under the Rural Development Program are excluded from this scheme.
What will the money be for?
With the received grants, the companies will be able to finance activities necessary to overcome liquidity difficulties as a result of the epidemic outbreak of COVID-19.
Expenses for purchase of raw materials and consumables for the purpose of production of products or services will be eligible; costs of external services (including overheads); personnel costs (incl. costs for gross salary and costs for social security and health contributions at the expense of the employer), remuneration for personnel employed under an employment contract or under a management and control contract (but not more than BGN 2,000 per month) .
Ineligible costs will be:
- costs for activities started and physically completed or fully implemented before 01.02.2020, regardless of whether all related payments have been made;
- costs for acquisition of tangible and intangible fixed assets;
- expenses for current assets, other than those specified in item 14.2;
- costs of goods intended for sale;
- recoverable VAT costs;
- costs of taxes and fees;
- expenditure financed by public funds;
- costs of recovering support received from financial instruments financed by public funds;
- loan repayment costs, interest on loans, bank fees;
- costs for leasing installments;
- costs for second-hand raw materials and consumables;
- costs for preparation of a project proposal, management and implementation of the project.
After the completion of the implementation of the activities under the grant agreement, the beneficiary is obliged to prepare and submit to the Managing Authority a technical and financial report in which to describe the overall implementation of the project and the achieved results.
