Financing of 100% for the SMEs which transfer their businesses

The small and medium sized enterprises from Constanta, which carry on trade activities, can direct to the Territorial Office for Small and Medium Sized Enterprises and Co-operatives (TOSMEC) in order to benefit of the non reimbursable financial allocation directed for supporting the activities of commercializing products and services on the market. The allocated budget for 2008 is of 14,7 million lei. To these money can have access the economic operators which have as activity object commercializing of products and services on the market, have at least one year of service, don’t have debts to the consolidated general budget and local budgets and have recorded incomes from activity during the last three months.

Through the project of supporting the activities of commercializing the products and services on the market, the eligible beneficiaries receive a value of the non reimbursable allocation of maximum 60% from the total of the expenditures done for each machine, equipment or work system, but not over 50.000 lei. The financial allocation is granted for the acquisition of IT systems, the construction of a site on the internet, as also for buying bar code readers, electronic weigher, cash register, equipments or technological installations. Of a similar program also benefit the economic agents from all the cities where there are territorial offices for SMEs. Recently, at the TOSMEC Constanta headquarter took place the launch of the financing programs afferent for 2008. “On the strategy for 2008, besides those three financing schemes from the structural funds, TOSMEC also carries on national programs. In June 9 were published in the Official Monitor five national programs.

The national program for supporting the tradesmen and the services on the market was the most accessed during the past years”, Dumitru Nancu stated. Those five programs are: The program for development and modernization of the activities of commercializing the products and services on the market, The program for supporting the development of the small and medium sized enterprises by funds in the limit of the paid sums for the reinvested gross profit, The multi annual program for the period 2008-2011 for supporting the businesses transfer, The Program for organizing the Fair of Small and Medium Sized Enterprises –TIMM 2008 and the Program for organizing the National Co-operative Fair.

Unlike the last years, in 2008 were carried on a series of changes, for facilitating the access of the potential beneficiaries at the unrolled financing programs. So, the subscription is made on-line, and each entrepreneur can subscribe at home, accessing the internet page of the Ministry for Small and Medium Sized Enterprises and Co-operatives. After subscription, the computer will give him a score and in its base, in five working day from subscription, respective on July 4 will be sent notices. Once with receiving the notices, the entrepreneur disposes of other five days for bringing the financing file at the TOSMEC headquarter. Another change makes reference to the eligible beneficiaries, which starting with this year are also authorized natural persons and small company-family. The last element of novelty has the role of coming in the support of the businessmen by the fact that, if till now these had to carry on a main activity, either of trade or services on the market, on this year is also accepted the secondary activity.

“We’ve thought to make it more flexible because many economic agents beside the main activity carry on also secondary activities”, Dumitru Nancu added. In the same time was also started the START program, which adopted more changes against last year. So, the project for supporting the young managers doesn’t include anymore the currency rate element and the possibility of contracting a banking credit. Although the personal contribution of the beneficiaries was increased, the TINCOOP representatives are convinced that the budgets of the programs will be exhausted quite soon. The new START program will carry on after a procedure much more simple. So, the young entrepreneurs present themselves at the TINCOOP headquarter with the business plan. If the plan is good, then they will receive a financing up to 60.000 lei, being forced to assure 50% of the value which they need.

At the beginning of this month, NASMEC launched a new program for supporting the business environment. The program finances in percentage of about 100% the costs of the SMEs in case of the transfer of businesses. For 2008, the allocated budget is of de 200.000 lei, money which can be accessed by legal or natural persons which carry on economic activities independently, have entirely private the social capital, operate of at least 30 days and don’t have debts at the consolidated general budget. Also, the applicant companies must have an annually net turnover of maximum 50 million euro or total assets of mostly 43 million euro and a number of employees between 1 and 249. “Through this program are integrally sustained non reimbursable financial allocations, expenditures for paying the taxes and solicited tariffs in case of the operations of transferring the commercial or co-operatives enterprises. The goal is to ensure the continuity of ideas and commercial practices and of maintaining the already existent jobs, stimulating thus the economic activities”, Nancu says. The applications for subscriptions in the transfer program of businesses can be obtained from the TOSMEC headquarter.

Only 465 Romanian entrepreneurs have subscribed on-line or have deposited the financing projects for accessing the structural funds, available through the Sectoral Operational Program. Until now, the total value of the solicited funds rises up to 251 million euro, according to the data published by NASMEC. Those 465 project were deposited on the competitiveness axis of SOP, which finances the big investments, between 920.001 and 5.560.000 lei (between 254.143 euro and1.535.911 euro), the small investments, until 920.000 lei (till 254.143 euro) and the consultancy projects (10.000 euro). “The small and medium sized enterprises appetite for market researches and feasibility plans isn’t big, reason for which the EU measure must be promoted more. For the moment, the managers prefer to make investments in already existing businesses, which need new technologies and equipments, in order to reach to a higher level of productivity”, the officials of NASMEC say. After what the appeal for projects ends, the files will be evaluated and will be selected the ones which have a score comprised between 50 and 100 points, in the limit of the available budget.

The rejected projects must be redone, if the entrepreneurs want to have another chance to financing, in 2009. For the period 2008 – 2013, the total budget of the scheme is of 124 million euro. “Important is that a SME can hand in concomitantly several projects, unlike other programs of financing”, the TOSMEC Constanta director says. It can be obtained financing for contracting of consultancy for strategy elaboration, products and technologies, business plans, feasibility studies, of management and marketing, financial analysis and media strategies. The projects must be finalized at maximum six months from signing the financing contract.

The projects appeal started on May 19 and will stay open till the exhaust of those 6,34 million euro. “Every beneficiary can deposit at least a project, which he must finalize in two years from signing the financing contract. That’s why every beneficiary can deposit at least a project, which he must finalize in two years from signing the financing contract. That’s why the budget can be supplemented, because the money can be used till 2010”, Dumitru Nancu explains. The eligible expenditures within the scheme are the ones for purchasing terrains, buildings and equipments, the construction and modernization of the production and commercializing units. Also the enterprises can use the European money for the acquisition of software, licenses and consulting services. Instead, the budget of the consultancy scheme of SOP is still almost untouched. So, the allocations of 10.000 euro (37.000 lei) were solicited only by 100 companies, in terms in which the total budget is enough for about 600 commercial companies.