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May 27, 2022

OTP Bank finances local SMEs through the government non-refundable grants program, totalling € 1 billion

OTP Bank Romania has become a partner bank of the grant program implemented by the Ministry of Economy, Energy and Business Environment (MEEMA) for the support of the Romanian business environment. The € 1 billion non-reimbursable grant program from European funds includes three non-reimbursable grant schemes designed to finance local SMEs, a press statement informs.

Through the partnership with the Ministry of Economy, Energy and Business Environment, OTP Bank continues to support the local economy and the development of entrepreneurial companies by allocating new grants for SMEs.

“In order to overcome difficult situations together, a joint effort is needed. We see among our entrepreneur customers creativity, determination and outside the box ideas through which they manage to overcome this unprecedented period from an economic point of view. They need support and funding and that is why we are happy to be a partner bank in this government program on granting non-reimbursable grants, which has both a social and development role to strengthen a sector essential to the national economy”, Roxana Hidan, Deputy CEO OTP Bank, Retail Division.

The first grant scheme is called Microgrants and benefits from an allocation of EUR 100 million out of a total of EUR 1 billion of the program. These micro-grants have a value of EUR 2,000 per beneficiary and are dedicated to micro-enterprises, small and medium-sized companies without employees in 2019, self employed entrepreneurs, NGOs, medical offices, etc.

Working capital grants is the second funding scheme in this program, and the value of available funds is EUR 350 million. Entrepreneurs can obtain non-reimbursable amounts between EUR 5,000 and EUR 150,000, depending on the turnover they had in 2019, to finance the activity. In this case, SMEs affected by the COVID-19 pandemic are targeted, especially those active in the HoReCa and tourism industries.

Investment grants, the third line of financing available in this program, has the largest allocation of funds, amounting to EUR 550 million and is dedicated to SMEs which, despite the situation caused by the pandemic, have solid investment plans and can create new jobs. The value of the grants varies between EUR 50,000 and EUR 200,000 per beneficiary.

Representatives of SMEs that want to apply for one of the three state aid schemes can access the following link: https://www.otpbank.ro/ro/imm/credite/granturi-pentru-imm-uri in order to find out the conditions they must meet, as well as the steps they must follow to register the application, or they can register directly on the platform: granturi.immm.gov.ro, where they will upload a series of documents necessary for processing the funding application. The allocation of funds will be done according to the order of registration on the dedicated portal.

The complete list of eligible areas of activity in which local SMEs must operate in order to obtain this type of non-reimbursable grants, as well as the eligibility criteria, are described in detail in the specific legislation: GEO no. 130/2020, State aid scheme.

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