Hospitality owners who want to invest in their businesses by accessing non-refundable funds should be aware that during this period they can begin the process of accessing funds for the purchase of equipment, machinery, software licenses and other assets necessary for the operation and growth of the business.
State aid scheme for HoReCa businesses
The Government announced that at its meeting on 27 November 2020 it had analysed a draft OUG on some measures for the provision of financial support to tourism companies, accommodation structures, food establishments and travel agents, the activity of which was affected in the context of the COFID pandemic 19. According to the draft OUG, the aid is granted to beneficiaries in the form of grants to partially cover the loss of turnover or turnover, in the case of travel agencies, suffered in 2020 compared to 2019, amounting to 20%. According to the press release of the Executive, the budget of the State aid scheme is estimated at EUR 500 million, equivalent to lei, the maximum amount of State aid that can be granted to a beneficiary is EUR 800,000/enterprise, and the estimated number of beneficiaries will be 73,211, of which 15,168 accommodation structures, 52,583 food structures and 5,460 travel agents.
According to Startupcafe.ro, the CAEN codes that would come under funding will be:
licensed travel agents carrying out activities in accordance with CAEN codes 7911, 7912, 7990, tourist reception structures with classified accommodation functions, which carry out activities according to CAEN codes 5510, 5520, 5530, 5590, food structures, operating according to CAEN codes 5610, 5621, 5629, 5630.
In addition, the indicative timetable for the State aid scheme is as follows – the scheme would be in force from the date of its adoption until 30.06.2021. Payment of the corresponding amounts would be made within 30 days, but no later than 31.12.2021. The signing of the financing contract with the beneficiary under the scheme shall be made by 30 June 2021 at the latest and payment of the amounts within 30 days, but no later than 31 December 2021.
Investment grants, funds available and for hospitality firms
Investment grants are non-refundable European funds with a value of between 50,000 and 200,000 euros, which can be used by companies for the purchase of various equipment, machinery, software licenses, furniture, machinery and other assets necessary for operation. Such grants may be obtained at the head office or at any place of work, even if it is located in a locality other than the head office, including at newly established workstations and do not require the creation of new jobs. According to Startupcafe.ro, firms that have submitted projects to obtain Microgrants or Work Capital Grants may also apply to Investment Grants, provided that, after approval, proof can be provided that the firm’s account has the necessary amount for their own contribution.
For the submission of projects we only need the following documents:
financial statements at 31.12.2019 (balance sheet) – it is indicated that the company has at 31.12.2019 a profit of at least 80,000 lei offers for each benchmark included in the investment list.
It should be noted, however, that the financing does not include purchases of land and/or buildings, construction of buildings other than prefabricated buildings which do not involve obtaining a building permit or those falling under the category of temporary construction, interior fittings or renovations, given the risk that the investment will not be settled by the financier.
Funding for HoReCa businesses that want to equip their locations with photovoltaic panels and power stations for electric cars
The authorities announced that hostels, hotels, restaurants and other HoReCa companies of all sizes are invited to prepare their projects to obtain non-refundable funds from the state of 100,000 euros each to install photovoltaic panels and power stations for electric cars.
The CAEN codes that can access this measure are: 5510 – Hotels and other similar accommodation facilities, 5520 – Accommodation facilities for holidays and short-term period, 5530 – Parks for caravans, campsites and camps, 5590 – Other accommodation services, 5610 – Restaurants and other food service activities, 5621 – Food activities (catering) for events, 5629 – Other food activities, 5630 – Bars and other beverage service activities , n.c.a., 9329 – Other recreational and fun activities n.c.a.
According to Startupcafe.ro, applicants must meet a whole range of conditions, including:
have fulfilled the obligations to pay taxes, taxes, contributions and fines to the state budget, local budgets according to the legal provisions in force; undertake to draw up, through the chosen installer, all the technical documentation necessary for the installation of the photovoltaic panel system and recharging stations, in compliance with the legislation in force, the requirements of the electricity distribution operators and all the eligibility criteria required by the financing guide; commit to installing the photovoltaic panel system and recharging stations through the chosen installer, complying with the legislation in force and all eligibility criteria required by the funding guide.
Funding programmes for the digitisation of small and medium-sized enterprises in non-IT fields
Hospitality companies can access financing for investments made for the development and/or purchase of digital products. The value of the projects may be between EUR 30,000-100,000 and the aid shall be granted to the beneficiary of de minimis aid in the form of non-refundable financing at a rate of 90 % of the eligible amount
According to the funding guidelines, the activities eligible for funding are related to the acquisition of hardware and software equipment and the licenses needed to achieve the project objectives, related devices and equipment (including installation, configuration, commissioning expenses), to achieve the LAN network needed to implement the project application, to configure and implement databases, to migrate and integrate various existing data structures, to create a company presentation website and to implement the electronic signature solution.
Want to learn more about funding projects that could help your business? Let us know and we’ll try to find the answers for you!
