Companies and PFAs have at their disposal, with the end of October and the beginning of November 2021, two financing programs for non-agricultural businesses in rural areas, the guides with the final conditions for accessing money being recently published by the Agency for Financing Rural Investments (AFIR).
These are sub-measure 6.2 (Support for the establishment of non-agricultural activities in rural areas) and sub-measure 6.4 (Sub-measure 6.4 – Investments in the creation and development of non-agricultural activities), both being part of the National Rural Development Program.
Sub-measure 6.2 Support for the establishment of non-agricultural activities in rural areas:
On October 29, 2021, AFIR opened the project reception session for sub-measure 6.2 – Support for the establishment of non-agricultural activities in rural areas within the National Rural Development Program 2014 – 2020 (PNDR 2020).
The session for receiving the financing applications will take place between October 29, 2021, 9.00 – January 31, 2022, 16.00.Suma totala disponibila pentru investitii este de 50 milioane euro.
Objectives of sub-measure 6.2:
- creating new non-agricultural activities, especially for small farmers or their family members and in general, for small entrepreneurs in rural areas;
- diversification of the rural economy by increasing the number of micro and small enterprises in the non-agricultural sector, developing services and creating jobs in rural areas;
- encouraging the maintenance and development of traditional activities.
According to the Applicant’s Guide, “Applicants eligible for the non-reimbursable financial support granted under this sub-measure are:
– Farmers or members of an agricultural household who diversify their activity by setting up a non-agricultural activity for the first time in the rural area (authorized with a minimum status of PFA);
– Micro-enterprises and small existing enterprises in the rural area, which propose non-agricultural activities that they have not performed until the date of application for support;
– New micro-enterprises and small enterprises, established in the year of submitting the financing application or with a maximum age of 3 consecutive fiscal years, which did not carry out activities until the moment of its submission (start-ups) ”.
Applicants eligible for financial support are farmers or members of an agricultural household who diversify their activity by setting up a non-agricultural activity for the first time in rural areas (authorized with a minimum status of PFA). At the same time, existing micro-enterprises and small enterprises in rural areas are eligible, which propose non-agricultural activities that they have not carried out until the date of application for support, as well as new micro-enterprises and small enterprises, established in the year of submission of the financing application. a maximum of three consecutive fiscal years, which did not carry out activities until the moment of its submission (start-up).
The non-reimbursable public support is granted in the form of a lump sum, depending on the type of investment. Its value is 50,000 euros per project, except for production activities, for which the value of support is 70,000 euros for a project.
The activities for which funding through sub-measure 6.2 is requested must be found in the List of eligible CAEN codes, respectively in Annex 7 to the Applicant’s Guide.
Funded activities:
- Production activities (eg: manufacture of textiles, clothing, leather goods, paper and cardboard articles; manufacture of chemicals, pharmaceuticals; wood processing activities; metallurgical industry, manufacture of metal constructions, machines, machinery and equipment; manufacture of products electrical, electronic, including biomass fuel production, pellet manufacturing) for sale;
- Crafts, handicrafts and other traditional non-agricultural activities (eg pottery, embroidery, manual processing of iron, wool, wood, leather, etc.);
- Tourist activities (eg: camping accommodation, caravan parks, bungalows, leisure and catering services);
- Services (eg: medical, social, sanitary-veterinary; repairs of cars, tools, household items; consulting, accounting, legal, audit; information technology services and information services; technical, administrative services, other services for the rural population, etc. .)
„The monthly quality thresholds are 40 points for the period 29.10.2021– 29.11.2021, 30 points between 30.11.2021– 29.12.2021 and 25 between 30.12.2021 – 31.01.2022. The minimum project selection threshold is 25 points. The continuous submission of projects during the session stops before the deadline provided in the launch note, when the total public value of projects submitted at the beginning of the session with an estimated score greater than or equal to the quality threshold for that month reaches 150% from the level of the allocation of the session, except for the first 5 calendar days from each stage of submission, when the submission of projects is made regardless of the level of the ceiling “, states AFIR, in a communiqué.
According to the Applicant’s Guide, the minimum access conditions are:
– the applicant must be an eligible beneficiary and present a Business Plan (AP);
– the project must fall into at least one of the types of activities supported;
– the registered office and the working point, as well as the activity, must be located in the rural area;
– the implementation of the AP must start within 6 months from the date of the decision to grant support; Within a maximum of 33 months from the submission of the Financing Application, the applicant must prove the development of the commercial activities through the commercialized production or through the performed activities, in a percentage of at least 30% of the value of the first tranche.
1. Sub-measure 6.4 – Investments in the creation and development of non-agricultural activities of 30% of the value of the first tranche:
According to the calendar of launching the project submission sessions for 2021, available on the MADR website, on November 2, sub-measure 6.4 – Investments in the creation and development of non-agricultural activities was launched.
Regarding MS 6.4, the program aims to support investments in the creation and development of non-agricultural activities in rural areas. The non-reimbursable aid will be up to 200,000 euros (it will cover 70% or 90% of the eligible expenses, the higher support being for production activities).
Minimum access conditions:
- The applicant must fall into the category of eligible beneficiaries and demonstrate the ability to ensure co-financing;
- The investment must fall into at least one of the types of activities supported by the sub-measure (according to the list of eligible CAEN codes);
- The project must take place in the rural area;
- The economic viability of the investment must be demonstrated through the technical-economic documentation;
- The company must not be in difficulty;
- The investment will be preceded by an assessment of the expected impact on the environment;
The implementation period of the project is of maximum three years and includes the control of the correct implementation, as well as the payment of the last tranche and will not exceed December 31, 2025.
The specific expenses for the establishment and operation of enterprises and the expenses for the establishment of pensions, agro-pensions and hotels are not eligible.
Also, the registration files (which include the financing application, the business plan and other documents required by AFIR) are sent online and it is recommended to use the electronic signature.
The activities covered by the program are, in essence, the production activities, the craft activities, the tourist activities, the provision of social services or services for the population, but also the manufacture of biomass pellets and briquettes.
Existing and newly established micro-enterprises and small enterprises in rural areas can apply for financing. As a legal form, the applicants can be PFA, individual enterprise, family enterprise, SA, SRL or agricultural cooperative, among others.
According to the Applicant’s Guide, the principles of project selection are:
- Diversification of agricultural activity of farms to non-agricultural activities;
- Prioritization of medical services (including dental and sanitary – veterinary);
- The principle of prioritizing projects that include digitization actions to streamline the activity;
- Prioritization of projects that include environmental protection actions;
- Prioritization of production activities;
- Stimulating tourist and / or leisure activities and / or public catering units in areas with high tourist potential;
- Carrying out previous activities as a general management activity of the company;
- Prioritization of applicants who did not benefit from funding in the 2014-2020 programming period through PNDR (sM 6.2, sM 6.4 and similar sM 19.2);
- Maturity of the project – in the sense of the submitted documentation.
We mention that MS 6.4 aims at stimulating the business environment in rural areas, increasing the number of non-agricultural activities carried out in rural areas, but also the development of existing non-agricultural activities or job creation.
Legal basis:
- https://portal.afir.info/informatii_generale_pndr_investitii_prin_pndr_sm_6_2_infiintare_activitati_neagricole
- https://portal.afir.info/informatii_generale_pndr_investitii_prin_pndr_sm_6_4_modernizare_activitati_neagricole