Romanians Can Apply For Micro-Business Start-Up Aid As Of Tuesday

The program was allotted a budget of 21 million lei (EUR1=RON4.2412) this year.

Business plans must state investments in tangible and/or intangible assets for a definite period of time, according to the programs' applicant's guide.

Early-February, the Government approved an emergency ordinance whereby young entrepreneurs will be eligible for up to EUR10,000 as non-refundable financing to start their own micro-company, as long as they hire at least two employees and reinvest 50% of their profit every year.

Young entrepreneurs will receive up to 50% of the value of their planned business, but no more than EUR10,000, plus counseling and support, from the Agency for the Implementation of Projects and Programs for Small and Medium Enterprises (AIPPIMM). The business will be exempt from paying social security contributions for the income gained by four employees hired for an indefinite period, as well as from the fees charged by national or local Trade Registry Offices.

To get bank loans for export production and investments in the expansion and development of the new businesses, the state will grant guarantees for up to 80% of the loan value, but no more than EUR80,000, via the National Loan Guarantee Fund for Small- and Medium-Sized Enterprises. Incentives, however, will no longer be granted if a company's turnover for the current year exceeds the equivalent in lei of EUR500,000, or when the company turns three years old.

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