Consultancy Measure 1: de minimis scheme and state aid scheme in the context of the digitalization of SMEs

PNRR

PNRR

Consultancy Measure 1: de minimis scheme and state aid scheme in the context of the digitalization of SMEs

The objective of the state aid is to support the digitization of small and medium-sized enterprises (SMEs), which could subsequently contribute to increasing competitiveness, fostering the innovation of these enterprises and facilitating new ways of working. This sub-component will address one of the main challenges facing SMEs: the pressure to adapt their business models to digital realities.

The grant instrument of up to EUR 100,000 per enterprise will support SMEs in the adoption of digital technologies such as ICT hardware purchases, development and/or adaptation of software applications/licenses, including robotic process automation solutions and technological flows, purchasing of blockchain technologies, purchase of artificial intelligence systems, machine learning, augmented reality, virtual reality, purchase of a presentation site, purchase of cloud and Internet of things services, staff training with the help of IT equipment, consulting / analysis for identifying solutions technical skills that SMEs need.

Donor

European union

#NextGenerationUE

Coordinator

Ministry of European Investments and Projects (MIPE)

Pillar III

Smart, sustainable and inclusive growth, including economic cohesion, jobs, productivity, competitiveness, research, development and innovation, and a functioning internal market. with strong small and medium-sized enterprises (SMEs).

compound

C9 Support for the private sector, research, development and innovation

investment

I3 Aid schemes for the private sector

Measure 1

De minimis scheme and state aid scheme in the context of the digitization of SMEs

The type of call

Competitive

Deposit type

With timely submission (one application for financing).

Eligible beneficiaries

Enterprises, companies regulated by the Companies Law no. 31/1990, republished, with subsequent amendments and additions, which fall into the SME category and have their headquarters in Romania.

Grant value per SME

< 100,000 Euros

Supported activities

  • ICT hardware purchases;
  • procurement of equipment for automation and robotics intended for technological flows, integrated with digital solutions;
  • development and/or adaptation of software applications/licenses, including RPA software automation solutions, respectively Robotic Process Automation;
  • procurement of blockchain technologies;
  • purchases of artificial intelligence systems, machine learning, augmented reality, virtual reality;
  • purchase of presentation website;
  • procurement of cloud and IoT services;
  • training the staff who will use ICT equipment;
  • consultancy/analysis to identify technical solutions needed by SMEs, etc.

Status

Closed

Call opening date

February 15, 2023

Call closing date

June 30, 2023

Investment objective information:

Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Mechanism establishes as a mandatory objective that at least 20% of the total allocation of the plan should contribute to the digital transition or digital challenges. The National Strategy for the Digital Agenda for Romania (SNADNR) contributed to ensuring coherence and strengthening synergies between actions and investments in different areas of the digital economy. However, the effects of SNADNR implementation are minimal.

Digitization has a profound and widespread impact on all aspects of society and the economy: production, distribution, consumption, work and leisure. SMEs are under increasing pressure to adapt their business models accordingly and adopt the necessary digital technologies so that customers continue to find them competitive and attractive. In this context, the European Union of Crafts and Small and Medium Enterprises (UEAPME) has defined digitization as the biggest challenge for most European SMEs.

Digitization has multiple benefits. SMEs can increase their competitiveness by streamlining and accelerating processes from the design stage to the delivery stage, they can expand their market access and value chain integration through digital platforms, and they can improve customer relations using social communication platforms and digital customer services. In addition, digitization can enable SMEs to innovate by offering new digital products or services or by expanding their existing range of services with additional digital services.

Digitization leads to the emergence of new models of work organization within SMEs. Adopting innovative ways of working, which involve some degree of remote work and which provide greater autonomy to employees by creating a better work-life balance, can meet the needs of managers and employees, who are often obliged to , in the case of smaller businesses, to take on numerous roles. On the other hand, it can lead to new forms of instability and alienation, which carries the risk of undermining employee satisfaction and work environments within SMEs.

There are also a number of challenges associated with digitalisation. SMEs face uncertainties regarding the return on investment in digitizing business processes, as customers are not necessarily willing to pay a higher price for goods and services. At the same time, they face greater price competition in increasingly digital and globalized markets.

The opportunity costs of not digitizing will increase for SMEs as digital business models become the standard, no longer just a source of competitive advantage. SMEs that choose to postpone their digital transformation may find themselves forced to adopt some digital technologies anyway, and still without adequate training, as transactions with business partners, public administration and customers become increasingly digitized. SMEs that do not adapt to the ever-evolving consumer expectations will gradually be marginalized by competitors with greater visibility and a more active online presence. This trend will increase as the number of "digital natives" among consumers increases.

All investments will comply with the selection criteria of the following intervention fields presented in Annex VII to Regulation (EU) 2021/241: 010 (allocation of EUR 315 million), 012 (allocation of EUR 35 million).
The implementation of the investment will be completed by June 30, 2025.

Minimum and maximum value of the project, co-financing rate:

The total value allocated for the de minimis aid that will be granted within this investment, for the entire duration of its application, is 347.50 million euros.

The value of the de minimis aid in euros is calculated in lei at the InforEuro exchange rate valid on the date of signing the financing contract, and represents 90% of the total eligible expenses for small and medium enterprises. The rest of 10% represents co-financing that must be secured from own sources, excluding state aid or de minimis aid, by the beneficiary.

The value of the de minimis aid in euros is calculated in lei at the InforEuro exchange rate valid on the date of signing the financing contract, and represents 100% of the total eligible expenses for the micro-enterprise.

Apart from this amount, any other expense is an ineligible expense that will be borne by the beneficiary.

The maximum amount of de minimis aid is between:

20,000 and 30,000 euros for
micro
20,000 and 50,000 euros for
Small business
20,000 and 100,000 euros for
Medium enterprise

Aplication domain:

The provisions of this financing measure apply to enterprises, companies regulated by the Companies Law no. 31/1990, republished, with subsequent amendments and additions, which fall into the SME category and have their headquarters in Romania.

The activity for which funding is requested must be related to a CAEN code authorized on December 31, 2021. The project can be implemented in one or more implementation locations, located in the same development region. In the contracting stage, the beneficiaries will prove the CAEN code authorization at the implementation location. An enterprise can submit only one project within this call.

For complete information, access the Eligible expenses section

Eligibility conditions for projects:

Eligible applicants must cumulatively meet the following conditions:

a) have the status of small, medium or micro-enterprises (SMEs). The quality must exist both on the date of submitting the project application and on the date of signing the financing contract;

b) are established no later than 31.12.2021;

c) did not have their activity interrupted/suspended in 2022;

d) they recorded an operating profit (>0) in 2022;

e) undertakes to bear from its own resources the co-financing provided for in the terms of this guide;

f) does not carry out activities with erotic or obscene products, activities in the field of gambling, as well as those that contravene public order and/or legal provisions in force;

g) do not own web pages that contain acts or materials of an obscene character, defined according to Law 196/2003, republished with subsequent amendments and additions

h) do not fall into the category of "enterprises in difficulty", in 2022, as defined in this guide;

i) is not in a state of bankruptcy, judicial reorganization, dissolution, liquidation or temporary suspension of activity or is not in similar situations following a
procedures of the same nature provided for by national legislation or regulations;

j) they are not the subject of a recovery order, following a decision regarding the declaration of state aid as illegal and/or incompatible with the common market.

k) are not related to the tobacco industry (production, distribution, processing and trade);

l) do not provide for cloning for reproductive purposes; does not carry out activities intended to modify the genetic heritage of the human being that could make such hereditary changes, activities to create human embryos exclusively for the purpose of research or for the purpose of obtaining stem cells, including by means of nuclear transfer of somatic cells;

m) does not carry out gambling activities (production, construction, distribution, processing, trade or related software);

n) does not carry out sex trade;

o) does not involve live animals for experimental and scientific purposes to the extent that compliance with the "Council of Europe Convention for the Protection of Vertebrate Animals Used for Experimental and Other Scientific Purposes" cannot be guaranteed;

p) does not carry out real estate development or financial activities, such as the purchase or trading of financial instruments.

q) does not carry out activities related to exploitation/extraction, processing, distribution, storage or burning of solid fossil fuels and oil, as well as investments related to gas extraction.

r) requests de minimis aid, the value of which falls within the limits set out in this guide.

s) undertakes to reach at least 6 of the digital intensity criteria at the end of the project implementation, according to the Digital Economy and Society Index (DESI), respectively to become an enterprise:

i. where more than 50% of the employees use computers with Internet access for business purposes (a different user for each employee using the computer);

ii. that uses an ERP software package to share information between different business functional areas;

iii. which has a contracted maximum download speed of the fastest landline internet connection of at least 30 Mb/s;

iv. where online sales represented more than 1% of total turnover and web sales to private consumers (B2C) more than 10% of web sales (relative to the project submission period);

v. uses IoT;

vi. uses at least one social network (businesses that use networks are considered to have a user profile, account or user license depending on the requirements and type of social media; businesses that pay exclusively for posting advertisements (banner ads) either directly to the owner of the social network (e.g. Facebook, Twitter, etc.) or indirectly through companies that provide online services for the automatic posting of advertising messages on social networks (e.g. SoKule, etc.) are excluded for this criterion);

are you coming. use CRM;

viii. purchase sophisticated or intermediate cloud computing services (is a model that allows anytime, convenient and/or on-demand network access to a shared pool of configurable computing resources – e.g. networks, servers, storage, applications and services – that can be rapidly provisioned and launched with minimal management effort or interaction from a service provider There are three service models of cloud computing services: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a service (IaaS));

ix. uses AI technology;

x. purchase cloud computing services used on the Internet;

xi. makes e-commerce sales of at least 1% of total sales (in e-commerce sales of goods or services, the order is placed through websites, applications or EDI1 messages through methods specially designed to receive orders. Payment can done online or offline. E-commerce does not include written orders by e-mail);

xii. uses two or more social networks.

t) On the date of signing the financing contract, the financing applicant has no unpaid net payment obligations to the state budget and the local budget respectively in the last calendar year and has no facts entered in the tax file.

Beneficiaries will present at the last Transfer Request an IT Technical Report prepared by an independent auditor/entity whose main field of activity is consulting in information technology and which will certify that the implementation of the project has led to the fulfillment of the DESI criteria assumed by the project.

If the IT Technical Report does not certify that at least 6 DESI criteria have been met, following the implementation of the digitization project, the transfer request will not be accepted for payment.

Eligible expenses:

The activities/actions eligible to be financed through the Investment are specific activities aimed at digitizing SMEs through the use of information technology.
Eligible activities that are the subject of this call will only be funded if they have been initiated after the signing of the funding contract. Exceptions are activities related to the purchase of consulting services, including IT consulting for project development.

If the value of the project is higher than the eligible value, the expenses are borne by the beneficiary

Through this operation, specific activities/actions will be supported to support SMEs in adopting digital technologies such as:

Expenses are eligible if they meet the following cumulative conditions:

Careful! Intangible assets are eligible for the calculation of investment costs if they meet the following conditions:

The purchase of intangible fixed assets, to be used within the project, is based on:

The amount of VAT related to eligible expenses, if they are not deductible expenses, is borne from the state budget (art. 13, paragraph b) of GEO no. 124/2021).

Scheme implementation procedure:

Funding applications must be sent through the platform for submitting investment projects financed under the National Recovery and Resilience Plan. The platform can be accessed at the following link: https://proiecte.pnrr.gov.ro.

 

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