New non-repayable grants for SMEs: the novelty to face the Ukrainian crisis in the Aid DL

New non-repayable grants for SMEs: the new round of refreshments is foreseen by the DL Aid 2022 to face the economic effects of the crisis in Ukraine. Companies, in the presence of particular requirements, will be able to ask for refreshments up to a maximum of 400,000 euros.

The new package coming with the Aid Decree 2022approved in the Council of Ministers on 2 May, also provides for one new round of non-repayable grants for SMEs.

In particular, the refreshments are intended for small and medium-sized enterprises who have undergone a drop in turnoverare called upon to support higher costs and they have commercial links with the territories affected by the Ukrainian crisis.

As stated in the press release issued by the Government immediately after the green light on the new provision, 200 million euros for 2022 are the resources available to guarantee, in the presence of specific requirements, i non-repayable contributions up to a maximum of 400,000 euros.

Every detail on the novelty must be confirmed with the publication of the official text of the Aid Decree and then it will have to take shape in implementing decree which will be adopted by Ministry of Economic Development.

New non-repayable grants for SMEs: the novelty in the DL Aid to face the Ukrainian crisis

Pending confirmation and instructions, thanks to the draft in circulation of the provision approved by the Government with Council of Ministers of 2 May 2022 it is possible to have a first picture on requirements for obtaining non-repayable contributions and also on methods of calculating the amounts.

The mechanism outlined for the provision of refreshments follows the one adopted to deal with the Covid emergency. But the conditions for accessing the support measure are more specific.

The Fund to support companies damaged by the Ukrainian crisis expected from DL Aid was created to support small and medium-sized enterprises which meet the following requirements:

  • have achieved in the last two years for at least 20 percent of the company turnover operations of sale of goods or servicesincluding the procurement of raw materials and semi-finished products, with Ukraine, the Russian Federation and Belarus;
  • having registered a increase of at least 30 per cent of the average purchase cost for raw materials and semi-finished products in the last quarter prior to the entry into force of the provision with respect to the same period of 2019 (for companies established from 1 January 2020, the comparison is with 2021);
  • having undergone a decrease in turnover of at least 30 percent compared to 2019.

They can present application to obtain non-repayable contributions all SMEs that respond to features described and which fall within the definition of small and medium-sized enterprises from the European Commission Recommendation No. 2003/361 / EC.

New non-repayable grants for SMEs: the novelty in the DL Aid to face the Ukrainian crisis

According to the draft in circulation, the refreshments to cope with economic consequences of the Ukrainian crisis they can go up to a maximum of 400,000 euros and fall within the “Temporary crisis framework for state aid measures to support the economy following Russia’s aggression against Ukraine”.

Even the calculation mechanism takes up a formula already used in the past for support measures related to Covid. The losses incurred and the size of the company are taken into account.

First of all it is necessary to calculate the difference between the average amount of revenues relating to the last quarter prior to the entry into force of the Aid Decree and the amount of the same revenues relating to the same period of 2019.

After that, to obtain the value of the refreshments, it is applied to the figure the percentage related to the size of the SME.

Percentage Revenues for tax period 2019 (2021 for companies established from 2020)
60 percent Not exceeding 5 million euros
40 percent Between 5 million and 50 million euros

L’amount of the grant it could, however, be reduced in case of requests exceeding the available resources.

In other words, only once the questions have been closed will it be possible to evaluate whether i 200 million allocated will be sufficient to guarantee all companies in full the aid requested or if it will be necessary reduce the amount proportionally.

To switch to operation, in any case, you must first wait for the publication of the Aid Decree in the Official Gazette with all the details on the measure and then the issue of the implementing decree by the Ministry of Economic Developmentwhich will have 60 days from the date of entry into force of the provision.

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New non-repayable grants for SMEs: the novelty to face the Ukrainian crisis in the Aid DL

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