The Romanian Government has adopted measures to protect small and medium-sized enterprises in the COVID-19 context

To protect small and medium-sized enterprises (“SMEs”) of the negative economic effects produced by COVID-19, the Romanian Government has adopted the Government Emergency Ordinance no. 29/2020 regarding some economic and fiscal-budgetary measures[1](“GEO no. 29/2020“) Through GEO 29/2020, it was decided that the state will grant guarantees for certain categories of loans that can be accessed by SMEs in the next period. Granting guarantees for all types of SMEs Guarantee granted for one or more investments loans and/or one or more loans/credit lines for working capital. This facilitates will be granted up to 80% of the amount of the financing, excluding interest, commissions and bank charges related to the guaranteed loan. » The maximum cumulative amount of state-guaranteed funding per beneficiary under this facility is of RON 10,000,000. » The total value of the loans/credit lines to finances the working capital, granted to the beneficiary is of RON 5.000.000. » The total value for the investment loans is of RON 10.000.000.  Granting guarantees for micro-enterprises and small enterprises Guarantee granted for one or more loans/working capital credit lines excluding interest, commissions and bank charges related to the guaranteed loan. » maximum 90% granted for micro-enterprise or small enterprise » in value of a maximum of RON 500.000 for micro-enterprises » in value of a maximum of RON 1.000.000 for small enterprises » the maximum amount of credit spending/ working capital credit lines granted to a beneficiary may not exceed the average of the working capital expenditure in the last 2 fiscal years, up to a limit of RON 5,000,000. The Ministry of Public Finances subsidizes 100% of the interest on loans/lines of credit for investment and the financing of working capital. The subsidization could be extended until 31 March 2021, with the possibility of extension. The maximum financing period shall be 120 months in the case of investment loans and 36 months in the case of working capital credits lines. The working capital credit lines may be extended by a maximum of 36 months and shall be repaid in the last year of the extension. Also, SMEs may benefit from the deferred payment for utilities (e.g. electricity, natural gas, water, telephone and internet services) as well as a deferral of payment of the rent for the building for social headquarters and secondary offices, if they suspended their activity totally or partially based on the decisions issued by the public authorities, and they provide and emergency certificate issued by the Ministry of Economic, Energy and Business Environment.

 

[1] Published in the Official Gazette, Part I no. 230 of March 21^st, 2020 and in force from the same date.