Romanian state bank recently established to handle EUR 233 million cohesion policy funds for Small and Medium Enterprises (SMEs)
Romania Launches Regional Participation Fund to Boost SME Growth
The Romanian government has announced the launch of the Regional Participation Fund, a new financing instrument worth EUR 233.35 million, aimed at supporting Small and Medium-sized Enterprises (SMEs) in the country.
The Fund, managed by Romania's Investment and Development Bank (IDB), operates under the 2021-2027 EU Cohesion Policy. It is funded through allocations from the regional managing authorities of the North-East, South-East, and Bucharest-Ilfov regions, combining contributions from European funds (ERDF) and the Romanian state budget.
How the Fund Works
The Regional Participation Fund offers a blended financing scheme, combining zero-interest loans and grants to regional SMEs. The loans cover up to 70% of the investment value, while grants amount to 40% of the investment value, disbursed upon successful completion of the investment.
Financing is distributed through financial intermediaries, which are selected by the IDB through a transparent, objective procurement process expected to conclude by the end of 2025.
Eligibility and Application Process
The Fund targets SMEs located in the specified regions (North-East, South-East, Bucharest-Ilfov). SMEs interested in financing must apply via the financial intermediaries approved by IDB, rather than directly to the bank.
The selection of intermediaries and further details about the specific SME eligibility criteria will follow procedures defined by regional managing authorities and financial regulations.
Funding Sources
The Fund is financed by a mix of resources: allocations from regional cohesion policy programs from the ERDF and the Romanian state budget contributions. This combination supports both the loan and grant components aimed at increasing investment capacity for SMEs in the targeted Romanian regions.
The IDB, registered as a development bank in Romania on January 3, 2025, now serves as the Fund's manager.
In summary, the Regional Participation Fund offers a unique financing opportunity for SMEs in Romania, combining low-interest loans and grants to stimulate growth and regional development during 2021-2027. The Fund is part of Romania’s effort to leverage EU cohesion funds alongside national investments to support the growth of SMEs.
The Regional Participation Fund, a new financing instrument launched by Romania, is designed to support Small and Medium-sized Enterprises (SMEs) in the country's business sector, primarily those located in the North-East, South-East, and Bucharest-Ilfov regions. The Fund operates under the 2021-2027 EU Cohesion Policy, offering a blended financing scheme that combines zero-interest loans and grants to regional SMEs.
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