31.07.2020
SOURCES FOR FINANCIAL SUPPORT OF BUSINESS IN BULGARIA
FINANCING UNDER THE OPERATIONAL PROGRAM "INNOVATION AND COMPETITIVENESS" 2014-2020
CURRENT PROGRAMS
Objective: to provide operating capital for Bulgarian medium-sized enterprises to deal with the consequences of the COVID-19 pandemic.
Budget: BGN 156,000,000. Minimum grant amount per project: BGN 30,000, maximum: BGN 100,000.
The procedure has a deadline for submitting project proposals at 16:30 on August 24, 2020.
Objective: to provide operational capital for Bulgarian micro and small enterprises to deal with the consequences of the COVID-19 pandemic
Budget: BGN 173,000,000
Amount of grant for a project: minimum BGN 3,000, maximum: BGN 10,000
The procedure has a deadline for submission of project proposals 16:30 on 15.06.2020. The provision of additional funds due to the great public interest is being discussed.
UPCOMING PROGRAMS
BG16RFOP002-2.067 "Digitalization of small and medium enterprises"
Objective: Development of management capacity and growth of SMEs by promoting the use of information and communication technologies and services.
Budget: BGN 58,674,900
BG16RFOP002-1.030 „Stimulating the introduction of innovations by existing enterprises“
Objective: Providing focused support to Bulgarian enterprises to increase innovation in the thematic areas of the Innovation Strategy for Smart Specialization (ISIS), as the implementation of projects supported by the procedure should lead to the introduction of product innovation (good or service) or to the implementation of innovation in business processes aimed at the production of goods and provision of services. The implemented innovations should be in the priority areas of the thematic areas of ISIS.
Budget: BGN 85,000,000
GOVERNMENT MEASURES TO RETAIN STAFF AND COMPENSATION FOR EMPLOYEES
- Payment of compensation to employers
As of March 31, 2020, the Employment Agency opened a procedure for applying of employers for payment of compensations under the procedure of Article 1 of Decree № 55/30.03.2020 for determining the conditions and procedure for payment of compensations to employers in order to maintain of the employment of employees in the emergency situation.
- Granting interest-free loans
Bulgarian Development Bank guarantees the granting of interest-free loans up to BGN 4,500 for workers who are on forced unpaid leave. The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months grace period.
- Parents on unpaid leave will receive BGN 375 one-time assistance
The Ministry of Labor and Social Policy allocates BGN 20 million for one-time assistance in the amount of BGN 375 to parents of children under 12 who have been on unpaid leave for at least 20 days due to inability to work from home during the state of emergency. From May 5, the scope of the target groups with the right to receive one-time assistance is expanded - parents of students up to 7th grade, who have reached 14 years of age, as well as families in which one or both parents have lost their jobs but are not entitled to unemployment benefits, will also be able to receive a one-time assistance of BGN 375. The application is to the Social Assistance Agency under the existing procedure for receiving a one-time assistance.
- Hiring workers on unpaid leave on a second employment contract from other companies
Workers who are on unpaid leave due to the suspension or contraction of their enterprises due to a state of emergency may be employed on a second contract by other employers whose activities have not been affected.
- Conclusion, samples and electronic submission of employment contracts under Art. 114a of the LC
Registered farmers and tobacco growers can electronically apply for new models of employment contracts for short-term seasonal agricultural work (under Article 114a of the Labor Code) - for more than one day without prior payment of social security contributions.
- Compensation of BGN 290 per month to maintain the employment of employees
Employers and self-employed persons from the transport, hotel and restaurant and tourism sectors, whose incomes have decreased by not less than 20% for a certain period, will be able to receive compensations in the amount of BGN 290 per month to maintain the employment of workers and employees. According to the Decision of the Council of Ministers, the compensations will be paid for a whole calendar month, as of 01.07.2020, but for not more than six months, as the funds are from OP “Human Resources Development” in the amount of BGN 40 million.
- Package "Employment x 3" - new measures to preserve jobs and reduce unemployment
The Ministry of Labor and Social Policy has launched three measures to preserve jobs and reduce unemployment. The "Employment x3" package includes the new version of the measure 60/40, the measure to support the transport and tourism sectors with BGN 290 to keep a job, as well as a new scheme for hiring the unemployed.
Detailed information on each of the measures:
Decree of the Council of Ministers no. 151/2020 - The new 60/40
- Employers receive funds from the state to maintain employment after June 30, 2020.
For each employee the enterprises will be able to receive funds in the amount of 60 percent of the insurance income for May 2020 and 60 percent of the insurance contributions due by the employer, according to a decree adopted by the Council of Ministers. The funds will be paid for no more than three months in the period from July 1 to September 30, 2020. Applications for payment must be submitted to the Labor Office Directorate, which serves the territory of the place of work, accompanied by the documents necessary to determine the amount of funds.
As of March 31, 2020, the Employment Agency opened a procedure for applying to employers for payment of compensations under the procedure of Article 1 of Decree № 55/30.03.2020 for determining the conditions and procedure for payment of compensations to employers in order to maintain of the employment of employees in the emergency situation.
- Socio-economic measures for over BGN 1 billion in response to the COVID-19 pandemic
The government's new socio-economic measures amounting to BGN 1.162.9 billion are aimed at supporting those fighting on the front lines against the spread of COVID-19 and helping those most affected by the pandemic. The source of expenditures is the national budget, with social measures amounting to BGN 731.5 million and economic ones BGN 431.4 million.
