11.06.2020   

FORTHCOMING ANNOUNCEMENT OF PROCEDURE FOR SELECTION OF PROJECTS "SUPPORT OF MEDIUM ENTERPRISES FOR OVERCOMING THE ECONOMIC CONSEQUENCES OF THE COVID-19 PANDEMIC"

We remind you that (indicative date 12.06.2020) The Managing Authority of the Operational Program "Innovation and Competitiveness" 2014-2020 (MA of OPIC) will announce a selection procedure for projects "Support to medium-sized enterprises to overcome the economic consequences of the pandemic COVID-19" under Priority Axis 2 "Entrepreneurship and SME Growth Capacity", Investment Priority 2.2. "SME growth capacity".

The purpose of the procedure is to provide operating capital for Bulgarian medium-sized enterprises to deal with the consequences of the COVID-19 pandemic.

According to the draft terms of application, the minimum amount of the requested grant for an individual project is BGN 30,000, and the maximum amount of the requested grant for each individual project is BGN 100,000.

The grant awarded under the procedure may be up to a maximum of 1% of the "net sales revenue" for 2019.

The duration of implementation of each project should not exceed 3 (three) months from the date of entry into force of the administrative contract for the provision of grants.

Within the procedure, applicants may submit only one project proposal.

As a result of the implementation of the procedure, the supported enterprises are expected to continue their activities for at least 3 months after the completion of the project, as well as to have kept the employment from the levels before receiving the support.

By the date of submission of the project proposal, the applicants should have already submitted an Annual Tax Return for 2019 to the National Revenue Agency, in accordance with the provisions of CITA / PITA.

According to the draft conditions for application, eligible candidates are:

• traders registered in accordance with the Commercial Act or the Cooperatives Act before 01.01.2019;
• who meet the requirements for a medium-sized enterprise under the Small and Medium-sized Enterprises Act;
• Candidates should have realized net sales revenues for 2019 in the amount of at least BGN 3,000,000, but not more than BGN 50,000,000;
• Applicants who have registered a decrease of at least 20% in turnover (net sales revenue) for one of the calendar months in the period from 01.02.2020 to the month preceding the month of application compared to the average monthly turnover (net sales revenue) in 2019. To certify the value of the net sales revenues for the reference calendar month chosen by the applicant (in the period from 01.02.2020 to the month preceding the month of application) a presentation of the Income Statement for the respective month will be required;
• As of December 31, 2019, the candidate company is not in a difficult situation.

Support for the procedure can not receive candidates who are:

- undertakings applying for financing an economic activity falling within the scope of Annex I to the Treaty establishing the European Community (Annex 5 to the Conditions for application);

- enterprises applying for financing activities for processing and/or marketing of forest products;

- enterprises applying for financing of economic activity, which according to NACE.BG 2008 (Appendix 6 to the Conditions for application) falls in Sector C - code of economic activity 10 “Production of food products” and code 11 “Production of beverages”.

- Support for the procedure cannot be received by applicants who are companies applying for financing economic activity in the fisheries and aquaculture sector, including processing of fish and aquatic organisms.

- Support under the procedure cannot be received by applicants who are enterprises applying for financing of economic activity falling within the financial sector (sector K "Financial and insurance activities" according to NACE.BG-2008).

Eligible under the procedure are the costs necessary to overcome the shortage of funds or lack of liquidity resulting from the COVID-19 epidemic, as follows:

 Expenses for purchase of raw materials and consumables intended for use in the activity for the purpose of production or services;

 Expenses for external services (incl. Overheads);

 Staff costs (including gross salary costs and costs for social security and health contributions at the expense of the employer). Remuneration costs are eligible for staff employed under an employment contract or under a management and control contract. The amount of expenses (including social security and health contributions at the expense of the employer) in respect of remuneration under management and control contracts must not exceed BGN 2,000 per month.

The procedure envisages fully electronic submission and evaluation of project proposals, which will be carried out through the Information System for Management and Monitoring of EU Funds in Bulgaria (UMIS 2020).

The deadline for submitting project proposals is 30 days from the date of announcing the procedure.

The Berkovitsa Consultancy Center helps the interested persons: by phone 0890943741 or by e-mail: berkpro.robg@abv.bg