12.05.2022
NEW FUNDING UNDER THE REACT-EU PROGRAM
A completely new grant funding from the European Union is the REACT-EU program. Through it, the European Regional Development Fund (ERDF) is helping Bulgarian small and medium-sized enterprises to recover from the economic consequences of the spread of the COVID-19 pandemic.
The total amount of the grant under the procedure is BGN 136,226,120 (EUR 69,651,309.16).
The aim is to provide focused support to Bulgarian small and medium enterprises, thanks to which they can improve their energy efficiency. With this important tool, they will be able to stabilize after the economic turmoil of the last two years and continue their sustainable development. The full flexibility of the implementing rules, together with the financial allocation and use of existing programs until 2023, are the main elements on which the successful implementation of REACT-EU depends.
Sustainable energy supply, reducing greenhouse gas emissions, increasing security of supply and reducing import costs are the basis on which energy efficiency can be increased. They are also a means of increasing the EU's competitiveness. Energy efficiency is a strategic priority for the Energy Union and the EU.
With these funds, small and medium-sized enterprises in the manufacturing sector will be able to reduce their costs for electricity, natural gas, liquid fuels or other energy sources. The minimum amount of the requested grant for an individual project is BGN 25,000, and the maximum - BGN 150,000. The maximum aid intensity under the current procedure is 50%. The project will be implemented under the Operational Program "Innovation and Competitiveness" (OPIC) at the Ministry of Innovation and Growth.
In the first week of the procedure for improving energy efficiency, 811 micro, small and medium-sized enterprises applied for grant funding. The submitted project proposals are for nearly BGN 84 million. The total budget of the program is BGN 136 million. Companies from the processing industry will be supported under the procedure.
Depending on their needs, companies can receive between BGN 25,000 and BGN 150,000 in grants. One of the conditions for application is to have 50% own participation. The funds can be used to purchase energy-saving machines and equipment, as well as to make modern insulation of production bases.
The submission of projects under the procedure will continue until May 23 inclusive.
Another measure provides gratuitous financial support to companies with a turnover of over BGN 500,000. Under it, another nearly BGN 41 million are to be paid to 815 small enterprises to deal with the consequences of the pandemic. Each of the companies will receive BGN 50,000 to reimburse the operating costs for salaries, materials and consumables made during the pandemic.
636 of these companies have already signed contracts and are expected to receive their money within a maximum of three months. For the remaining 179 approved small enterprises, the negotiated procedure has started. They will receive approximately BGN 9 million, which were provided at the end of last month. Thus, the total number of companies supported under this measure of the Operational Program will be almost 4400. The allocated funds will exceed BGN 219 million. This will allow companies to reduce their energy bills and create conditions for their sustainable development.
Preferential loans for liquidity support and new investments of small and medium enterprises will be extended until the middle of the year. They will be guaranteed with an additional BGN 96.2 million from the OP "Innovation and Competitiveness" as part of the EU response to the pandemic under REACT-EU.
