Everything you need to know about the new stage of digitalization for Romanian non-IT SMEs

Last week, the Ministry of European Funds published the documents necessary to receive European funds for micro, small and medium-sized enterprises (SMEs) in Romania. The project aims to increase economic competitiveness by developing Information and Communication Technology and can offer companies between 30,000 and 100,000 euros.

The total financing budget for SMEs is 100 million Euros.

European funds and the state budget will provide a total budget of 105 million euros, out of which 5 million euros will be used by the Regional Development Agencies (RDAs) and other state institutions involved in the implementation of the development scheme of financing for the digitalization of SMEs in Romania.

The funds can provide 30,000 to 100,000 euros for each SME.

From the available amount of EUR 100 million, a maximum of 1000 SMEs can be financed, provided that the maximum amount of the established subsidy is provided. Depending on the demand, it will be decided to reduce the subsidies for each eligible SME, thus increasing the number of companies that can benefit from these funds.

SMEs cannot apply directly for the European funds.

The Ministry of European Funds will not provide subsidies directly to companies. To streamline the funding process, RDAs will act as sub-administrators for the de minimis aid scheme for SMEs. Each RDA from the eight development regions in Romania will request the money from the European funds so that they can later launch their own applications. The companies will be able to apply to them, having the chance to obtain between 30,000 and 100,000 euros.

The selection process is performed by RDAs.

The Ministry of European Funds will publish the Applicant's Guide in the final form, followed by the RDAs introducing large projects in the MySMIS2014 system. SMEs registering for RDAs will be assessed and selected by them on the basis of transparent and non-discriminatory criteria established by OIPSI (Intermediate Body of the Ministry of Communications). The selection process takes a maximum of 6 months from the time the RDA signs the financing contract with OIPSI, and each RDA will select at least 120 SMEs to finance.

Every SME belongs to an RDA, and their budgets differ.

It is important for entrepreneurs to apply to the ADR where their companies are registered. The distribution is as follows:

1. ADR Nord Est (Bacău, Botoșani, Iași, Neamț, Suceava and Vaslui): 15.759.000 euros.
2. ADR 2 Sud Est (Brăila, Buzău, Constanța, Galați, Tulcea, Vrancea): 13.374.000 euros.
3. ADR 3 Sud-Muntenia  (Argeș, Prahova, Dâmbovița, Teleorman, Giurgiu, Ialomița and Călărași): 14.166.000 euros.
4. ADR 4 Sud-Vest Oltenia (Dolj, Gorj, Mehedinți, Olt and Vâlcea): 10.773.000 euros.
5. ADR 5 Vest  (Timiș, Arad, Caraș-Severin and Hunedoara): 10.593.000 euros.
6. ADR 6 Nord-Vest (Bihor, Bistrita-Nasaud, Cluj, Maramureș, Satu Mare, Sălaj): 12.897.000 euros.
7. ADR 7 Centru (Alba, Brașov, Covasna, Harghita, Mureș and Sibiu): 12.438.000 euros.
8. ADR 8 București-Ilfov (Municipiul București and Ilfov): 10.000.000 euros.

Almost all SMEs are eligible for this funding.

There are, however, a few exceptions: “activities with erotic or obscene products, gambling, as well as those that contravene good morals, public order and / or legal provisions in force; does not have web pages containing obscene acts or materials, defined according to Law 196/2003, republished with subsequent amendments and completions ”.

Grants do not cover 100% of the investments.

It is important to note that subsidies do not fully cover companies' costs for digitalization. The amounts granted of 30,000 - 100,000 euros will represent 90% of the eligible expenses of the SMEs, the companies being obliged to contribute, in their turn, with 10%. And, of course, SMEs will also pay for expenses that are not marked as eligible by the program.

Not all digitalization costs can be covered.

The eligible investments include the acquisition, rental or development of the following:

• ICT hardware, related devices and equipment (including installation, configuration, commissioning costs).
• LAN creation
• software applications / licenses
• company presentation website;
• renting a new “.ro” domain name directly from the national “.ro” domain provider;
• renting the electronic signature solution;
• specific computer applications for people with disabilities;
• IT solutions for e-commerce;
• consulting services for the elaboration of the necessary documentation for the preparation of the project application proposed for financing and / or the management of the project application (including the elaboration of the necessary documentation for the implementation of the project application);
• training of the personnel who will use the implemented / purchased products and the one who will ensure the maintenance;
• intermediate / final audit services, financial (according to the national regulations in the financial-accounting field) and technical (from the perspective of the correspondence of the result of the project application with the financing application and the POC objectives).

Furniture elements that are not related to the operation of computer products / applications implemented through the project application are excluded.

The program for the digitalization of SMEs is segmented into two types of financing.

There are funds for non-IT SMEs, which are meant to help them with new digitalization equipment, and funds for IT SMEs wishing to develop innovative technologies. The first ones are worth 100 million euros, and 50 million euros are dedicated to IT SMEs in another sub-program.

The de minimis aid scheme for the digitalization of SMEs is an opportunity for growth and can lead to a competitive digital economy.

See here the de minimis scheme, the proposed guide and the guide offered by the Ministry of European Funds.