Romanian State Bank Established to Administer €233 Million Cohesion Policy Fund for Small and Medium Enterprises
The Investment and Development Bank (IDB) of Romania, founded in 2023 by the Romanian government, has announced the launch of a new Regional Participation Fund worth EUR 233.35 million. This initiative is a collaborative effort between the Managing Authorities for the North-East, South-East, and Bucharest-Ilfov Regional Programs, as well as European funds (ERDF) and the state budget.
The Regional Participation Fund is designed to support Small and Medium Enterprises (SMEs) in Romania. It offers a unique combination of low-interest loans and grants to help businesses grow and invest. The loans can cover up to 70% of the investment's value, while grants can cover 40% upon successful completion of the investment.
The IDB will manage the Fund, with the selection process being transparent, non-discriminatory, and objective. The financial intermediaries will provide financing to SMEs through the Regional Participation Fund.
While specific eligibility criteria and application processes for SMEs to access the Regional Participation Fund have not been detailed yet, we can outline a general approach based on typical practices for SME funding by development banks.
General Eligibility Criteria for SME Access to Development Bank Funds (Typical): - The applicant must be a legally registered SME in Romania. - SMEs must be for-profit entities with a valid registration and tax compliance. - The business should typically demonstrate a viable business plan or project aligned with regional development objectives. - SMEs are often required to have a certain minimum operating period (e.g., at least 1 year of operation). - The company should not be in financial distress and must comply with state aid rules. - Specific sectors or project types may be prioritized depending on the Fund’s strategic focus.
Typical Application Process: 1. Check Official Calls: SMEs should monitor official announcements from the Investment and Development Bank of Romania or the relevant government portals announcing calls for applications to the Regional Participation Fund. 2. Prepare Documentation: This usually includes company registration documents, financial statements, a business/project plan, and any statements proving eligibility criteria (such as SME status). 3. Submit Application: Applications are typically submitted online through a dedicated portal or sent physically to the bank. 4. Evaluation and Due Diligence: The bank evaluates applications based on eligibility, business viability, impact potential, and compliance with fund objectives. 5. Contracting and Funding: Successful applicants sign agreements and receive funds disbursed based on the agreed terms.
For the most accurate and up-to-date information about the Regional Participation Fund, we recommend visiting the Investment and Development Bank of Romania’s official website or contacting them directly. Additionally, checking Romanian government websites focused on European funds or SME support for updates on calls and funding opportunities specifically related to this Fund may be beneficial. Local business support organizations or chambers of commerce in Romania may also provide assistance and detailed information on applying to the Fund.
It's important to note that the information provided here is based on standard procedures for such funds in Romania and the EU context. For precise criteria and application steps, direct official sources or contacting the bank is recommended. The IDB has announced that they will select financial intermediaries expressing interest to provide financing to SMEs by the end of 2025. The exact date of the IDB's announcement is currently unspecified.
The Regional Participation Fund, managed by the Investment and Development Bank of Romania, aims to provide financing for Small and Medium Enterprises (SMEs) through a combination of low-interest loans and grants, contributing to business growth and investment in Romania.
SMEs interested in accessing the Regional Participation Fund should monitor official announcements from the bank or relevant government portals, prepare necessary documentation, submit applications online or physically, and go through the evaluation and due diligence process before potentially signing agreements and receiving funds.
