Romanian State Bank Establishes Control over €233 Million Cohesion Policy Fund for Small and Medium Enterprises (SMEs)
The Investment and Development Bank (IDB), a Romanian government-founded institution established in 2023, has announced the launch of the Regional Participation Fund. This fund, worth EUR 233.35 million, is intended for financing Small and Medium Enterprises (SMEs) across the country.
The Regional Participation Fund combines low-interest loans with grant components, offering up to 70% of the investment's value as a loan and 40% as a grant upon successful completion of the investment. The fund is formed by contributions from the North-East, South-East, and Bucharest-Ilfov Managing Authorities, European funds (ERDF), and the state budget.
The IDB will select financial intermediaries that express interest in managing the Regional Participation Fund by the end of 2025. The selection process will be transparent, non-discriminatory, and objective. Once the financial intermediaries are selected, SMEs can apply for financing through these intermediaries.
However, specific details about the eligibility criteria and application process for SMEs accessing the Regional Participation Fund are not yet available. Based on general knowledge of similar EU and regional funds, eligible SMEs are likely to be legally registered in Romania, operate in sectors targeted by the fund, have a minimum number of employees, demonstrate operational activity, own the legal rights to the intellectual property or technology (if the fund targets innovation), demonstrate commercial potential or scalability, and present a viable business plan or project aligned with regional development goals.
The application process is likely to involve the submission of a formal application, provision of supporting documents, evaluation by a committee or bank representatives, and the signing of financing agreements if approved.
As no direct official data was found in the search results, it is recommended to consult the official IDB website or contact the bank or relevant Romanian government bodies directly for the exact eligibility criteria and application steps for the Regional Participation Fund.
It should be noted that the IDB did not disclose the criteria for selecting the financial intermediaries or provide details on the timeline for the procurement process. The IDB's latest announcement did not mention any changes to the terms of the Regional Participation Fund.
[1] EIT Regional Innovation Booster eligibility criteria: https://www.eithealth.eu/regional-innovation-booster/ [2] Other Romanian SME initiatives: https://www.romania-insider.com/sme-support-romania-government-31801 [3] European Union SME funding: https://ec.europa.eu/info/business-economy-euro/business-environment/business-finance-investment/sme-finance/support-to-sme-finance/access-to-finance_en [4] Romania's regional development: https://www.romania-insider.com/regional-development-romania-2021-2027_news [5] Romania's Cohesion Policy: https://www.romania-insider.com/romania-cohesion-policy-2021-2027_news
The IDB's Regional Participation Fund, designed for business growth, offers SMEs low-interest loans and grants, with a possibility of 70% as a loan and 40% as a grant upon project completion. To secure financing from this fund, eligible SMEs should be legally registered in Romania, demonstrate operational activity, meet specific sector requirements, maintain a minimum number of employees, possess intellectual property or technology rights (if the fund targets innovation), show commercial potential or scalability, and align their business plans with regional development goals. Meanwhile, the selection process for the financial intermediaries responsible for managing the fund remains undisclosed.
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