Romanian companies, from small companies to large companies, organized as SRL, PFA and other forms, can receive, in 2019, new European funds from a maximum of 600,000 euros to 1.5 million euros, for business with fruit processing. Natural juices, jams and low-alcohol drinks, such as cider or strong drinks, such as Roman brandy, can be produced with European funds from Sub-Procedure 4.2a, which the country has just published its 2019 Applicant Guidebook.
These days, the Agency for the Financing of Rural Investments (AFIR), of the Ministry of Agriculture, has released the Applicant Guidebook for inviting projects in Sub-Action 4.2a – Investments in Processing/Marketing of Products from the Fruit Sector, under the 2014-2020 National Rural Development Program.
The manual and other necessary documents are posted on the AFIR website in section sumbasura 4.2a. AFIR will announce the project submission period. The deposit will be made online on the same site.
For the winning projects, Romanian companies in the field of fruit processing can, depending on the volume of business, receive European funds, in the amount of not more than 40% or a maximum of 50% of the total value of the eligible expenditures from the project. The rest of the money, as well as unqualified expenses, must be provided by the entrepreneurs.
These are the maximum funding limits for each project:
Micro and Small Business The intensity of the subsidy is 50% of the total expenditure due, not to exceed:
- €600,000 for projects that do not involve investments that cover the entire food chain;
- 900 thousand euros for investments covering the entire food chain (collection, storage, packaging, processing and marketing);
medium-sized enterprises The intensity of the subsidy is 50% of the total expenditure due, not to exceed:
- €800,000 for non-investment projects leading to an integrated food chain;
- € 1,100,000 for investments that drive an integrated food chain (collecting, storing, conditioning, processing and marketing).
big companies The intensity of the support is 40% of the total expenditure due, not exceeding:
- €1,000,000 for non-investment projects leading to an integrated food chain;
- 1,500,000 euros for investments leading to an integrated food chain; Grant density will be increased by 20 percentage points in the case of operations supported under the European Innovation Partnership (EIP). The increase in the intensity of non-reimbursable support for Operations Supported in the Framework will only apply to applicants submitted in SM 16.1a projects targeting similar SM 4.2a operations, and not to applicants associated with Sub-Procedure 4.2a.
Selected beneficiaries will also be able to get an advance of a maximum of 50% of the eligible non-refundable amount, after signing the financing agreement. A financial guarantee is required from the bank for the advance, in the amount of the entire amount requested.
What business can be done with these European funds
This European money is intended for the business of processing and marketing fruit from fruit trees. We are talking here about agricultural products included in Annex I to the Treaty on the Action of the European Union (TFEU).
Examples: Business can be done in the production of natural fruit juices, fruit jams, apple juice and natural brandy.
Raw materials collected for processing are not allowed to come from spontaneous plants. For example, blueberries, blackberries, currants, nuts, hazelnuts, etc., harvested from mixed forests and abandoned farms (which cannot be included in the same category of agricultural products) cannot be raw material for processing under this sub-procedure. .
Please note that only small enterprises (companies with a maximum of 9 employees) and union forms can apply for the production of alcoholic beverages.
In the case of alcoholic beverages, the maximum limits for non-refundable financing are:
- €200,000 for micro-enterprises;
- €300,000 for union models (producer groups and cooperatives).
What to buy with European money – Eligible Expenses:
Corporate investment expenses:
– creation, expansion and modernization of units for the collection, conditioning and / or processing of raw materials from the fruit sector referred to in Annex I of the Free Trade Agreement, including the production of alcoholic beverages;
– constructions intended for the entire technological stage or flow (assembly 2 – storage (raw materials / products) – sorting – conditioning – processing – marketing);
Infrastructure and internal facilities, as well as connections and connections necessary for the projects, video surveillance systems for the activity proposed by the project, etc .;
Mobile processing units.
– To take into account hygiene, sanitary and veterinary conditions and technological flow, spaces for production personnel are qualified: laboratories, filter type changing rooms for workers, space for preparing and serving the meal, etc.
Acquisition of new machinery, installations, equipment and specialized means of transport, including leasing, for the purpose of collecting raw materials.
Specialized means of transport that transport only a certain type of raw materials / goods suitable for the activity described in the project are eligible costs:
- self-heating (with thermal insulation of the walls, but without a refrigeration unit, used for transporting food);
- isothermal trailers and semi-trailers with and without cooling or temperature control units;
- Specialized transport tanks for raw materials/finished product relevant to the project activity;
- Cold self heat (transportation of perishable products or at controlled temperatures).
Expenses with intangible assets:
Organizing and implementing quality management and food safety systems if they are related to the tangible investments of the project.
Acquisition of technologies (know-how), patents and licenses for the preparation of project implementation;
Acquisition of software, identified as essential in the technical and economic documentation of the project.
Expenses on marketing the products obtained:
- launching a website – to promote and market their products;
- labeling (concept creation);
- Creation/acquisition/registration of trademarks.
Expenses related to the marketing of the obtained products will be paid within 5% of the eligible value of the project, but not more than 30,000 euros.
Terms of the beneficiary companies
The company will prove that the average annual profit (as an average of the last 3 financial years) does not exceed 4 times the required support amount.
As forms of organization, the categories of eligible beneficiaries who can receive non-reimbursable funds are:
An authorized natural person (established on the basis of GEO No. 44/2008) with subsequent modifications and completions;
Sole proprietorships (established on the basis of GEO No. 44/2008) with subsequent amendments and completions;
Family Enterprises (established on the basis of GEO No. 44/2008) with subsequent modifications and completions;
Partnership – SNC (established by Law No. 31/1990 republished, with subsequent amendments and completions);
Limited Partnership – SCS (established by Law No. 31/1990 and republished with subsequent amendments and completions);
Joint Stock Company – SA (established by Law No. 31/1990 with subsequent amendments and additions);
Limited Partnership – Securities and Commodities Authority (republished by Law No. 31/1990 with subsequent amendments and supplements);
LLC – SRL (established on the basis of Law No. 31/1990 republished, with subsequent amendments and supplements);
Agricultural cooperatives were established on the basis of Law No. No. 566/2004, with subsequent amendments and completions, serving the interests of the members through the investments made in the project;
Co-operative societies were established on the basis of Law No. 1/2005 republished, with subsequent modifications and supplements) serving the interests of the members through the investments made in the project;
Group of producers (Government Order No. 37/2005 on the recognition of producer groups and organizations for marketing and operating agricultural products, with subsequent additions and amendments) serving the interests of members through the investments made in the project.
See the Applicant Guidebook on the AFIR website.