SMEs will be able to access loans up to 5 million Lei, 50% state guaranteed

According to a draft emergency Ordinance published on the website of the Ministry of Finance, small and medium enterprises (SMEs) will be able to access funding of up to 5 million Lei from credit institutions for a period of two years, 50% being guaranteed by the state, within the 'Loan Guarantee Program for SMEs'.

The program will run for three years, and the guarantee limit is of two billion Lei.
The guarantee shall not exceed 50% of the funding, except interest rates, fees and bank charges, and will be given by the National Credit Guarantee Fund for Small and Medium Enterprises. The loan can be used only to finance working capital and can be extended for another year in order to reimburse the credit line.

SMEs operating  in financial intermediation, insurance, real estate transactions, gambling and betting, production or marketing of weapons, ammunition, explosives, tobacco, alcohol, national controlled substances, plants, narcotic drugs and psychotropic substances, rental and leasing activities, investigation and protection activities are not eligible for this program.

The program targets SMEs that have a sustainable business and whose activity has a greater multiplier effect in the real economy, the mechanism being similar to the program "First House".

Source: Capital