PUBLIC CALL FOR THE ALLOCATION OF GRANTS WITHIN THE FRAMEWORK OF THE SUPPORT PROGRAM TO SMALL BUSINESSES FOR THE PURCHASE OF EQUIPMENT

The program to support small businesses for the purchase of equipment in 2018 (hereinafter: the Program) is implemented by the Ministry of Economy (hereinafter: the Ministry) in cooperation with the Development Agency of Serbia (hereinafter: the Development Agency) and selected commercial banks and leasing companies. The total funds available for the implementation of the Program amount to 556,322,062.70 dinars. The general goal of the Program is to strengthen the competitiveness of economic entities, improve their operations and internationalization, as well as create new jobs through investments in the procurement of production equipment and equipment directly involved in the production process of tradable goods (hereinafter: production equipment), namely:

1) new production equipment and/or machines;

2) transport and manipulative means included in the production process and internal transport

3) new parts, specialized tools for machines or other capital goods.

Funds for the implementation of the Program cannot be used for:

1) value added tax (hereinafter: VAT);

2) covering costs related to the acquisition of equipment such as: customs and administrative costs, costs of transport, forwarding, storage and manipulation, assembly and installation equipment, training and etc.;

3) covering the costs related to the approval and implementation of a bank loan, i.e. financial leasing, such as the costs of: processing the request, interest, the cost of the credit bureau for the user, registering a pledge in the Agency for Economic Registers (hereinafter: APR), mobility insurance, exchange rate differences, etc.;

4) refunding funds for already acquired (advanced, paid or delivered) equipment;

5) loans and installments for loan repayment, as well as for loan reprogramming;

6) other expenses that are not in accordance with the purpose of the Program.

Beneficiaries of grant funds

The right to apply for the grant award competition has:

1. legal entities, registered in APR as a business companies or cooperatives, which are classified as micro or small legal entities persons in accordance with the Law on Accounting ("Official Gazette of the RS", number 62/13) according to the financial reports for 2016, as well as

2. entrepreneurs registered in the APR.

Conditions for participation in the Program

Conditions that must be met by applicants for the award of grants:

1) That they have submitted one from banks or leasing companies involved in the implementation of this program:

- completed application for granting grants with the necessary documentation proving the conditions from this section;

- pro-invoice/proforma invoice/pre-contract/offer no older than the date of publication of the public call;

- picture of the equipment from the pro-invoice;

2) that they were registered in the APR register no later than December 31, 2016. year;

3) that they are not classified as a medium or large legal entity in accordance with the Law on Accounting according to the financial statements for the year 2016;

4) that no bankruptcy or liquidation proceedings have been initiated against them;

5) that they have settled their due public revenue obligations;

6) that within two years prior to the submission of the application they have not been issued with a legally binding measure prohibiting the performance of activities;

7) that owners and responsible persons have not been convicted of criminal offenses against the economy for a period of five years;

8) that they are majority privately owned;

9) that they are not in a group of related persons in which some of the members are large or medium-sized legal entities;

10) the purpose and purpose of investing in production equipment is in accordance with the nature of the subject's activity;

11) that they are business companies, cooperatives and entrepreneurs, according to records of the Central Register of Mandatory of social insurance on the number of workers on December 30, 2017, had at least one employee for an indefinite period, that is, that the entrepreneur as a founder was liable for contributions on the basis of self-employment or on any other basis;

12) not to perform activities in the following sectors:

1. primary agricultural production. Primary agricultural production, among other things, in the sense of this program, includes the cultivation of plant crops and domestic animals and other purposes directly related to the cultivation of plants and animals, as well as preservation and storage (the acquisition of equipment for carrying out packaging, sorting, processing and freezing activities, e.g. refrigerators or dryers is not excluded);
2. construction works (production of construction products is allowed);
3. traffic and transport;
4. production of tobacco products;
5. any form of trade, tourism or hospitality activities, except bakeries with industrial production and sale, and catering services;
6. printing and duplication of audio and video records, excluding printing services;
7. service activities (including, among others, consulting, marketing, accounting and market research services as well as other information technology services, production and broadcasting of digital content);
8. organization of games of chance, lotteries and similar activities;
9. production and sale of weapons and military equipment;
10. production and trade of oil and oil derivatives;
11. production of steel and synthetic fibers and coal mining;
12. production and trade of any product or activity, which according to domestic regulations or international conventions and agreements, are considered prohibited.

Funds under this program cannot be used for projects of business entities in other activities, if they do not contribute to the achievement of the specific objectives of the Program.

13) that they are not in difficulties according to the following definition:

A business entity in difficulties is a business entity that is unable to prevent losses with its own funds, the funds of its owners/shareholders or creditors or funds from other sources on the market and which, without the intervention of the state, in the short or medium term, threatened its survival;

The economic entity is in difficulties:

- if the liability for his debts is limited, and he has lost more than half of the basic capital, of which in the last 12 months he has lost more than a quarter of the basic capital;

- if at least one person is unlimitedly responsible for his debts, and in the financial statements it is shown that his capital has been reduced by more than half, of which in the last 12 months more than a quarter of the capital has been lost;

- if he meets the conditions for opening of bankruptcy proceedings;

The business entity is in difficulties and if none of the conditions from paragraph 1 of this point is met, if there are obvious indicators that indicate that it is in difficulties, such as: growth of losses, reduction of total income, growth of inventories, excess capacity, reduction of cash flows, growth of debt, increase in interest costs and fall or zero net asset value. In the greatest difficulties is a business entity that is unable to pay (insolvent) or for which bankruptcy proceedings have been opened;

A business entity that was founded less than three years ago is not considered a business entity in difficulties, unless it is a small or medium-sized business entity that meets the conditions for opening bankruptcy proceedings;

14) that in the current fiscal year and in the previous two years (in 2016, 2017. and 2018) did not receive state aid, the amount of which, together with the requested funds, would exceed the amount of 23 million dinars. Business entities will contractually undertake not to alienate the equipment in question for at least 24 months after the conclusion of the grant agreement, loan agreement, or financial leasing agreement.

Business entities may repay the loan or financial leasing funds early in relation to the term defined in the contract with the bank or leasing company, with the provision that if they make early repayment during the first third of the duration of the loan or financial leasing agreement, they are obliged to return the entire amount of approved grants.

Financial framework

Economic entities that meet the conditions of the Program and to which banks, i.e. leasing companies involved in the implementation of the Program, conditionally approve a loan, i.e. financing, can exercise the right to co-financing up to 25% of the net value of the purchase of production equipment. The business entity is obliged to provide a participation in the amount of 5% of the net value of the production equipment, while the remaining 70% of the net value of the production equipment will be provided from loans from commercial banks or financial leasing from leasing companies involved in the implementation of this Program.

In the event that the total net costs of purchasing equipment are higher than 20,000,000.00 dinars, the user can finance the difference with a larger own participation or increase the loan request from the bank, or the request for financial leasing from leasing company.

The amount of approved non-refundable aid up to 25% of the net value of the production equipment cannot be less than 500,000.00 dinars, nor more than 5,000,000.00 dinars.

How to apply and deadline for submitting applications

Precisely and correctly completed application and accompanying documentation in two copies (original and certified photocopy), in accordance with Program, are submitted when applying for a loan, i.e. financial leasing, in one of the branches/branches of the following commercial banks and leasing companies:

1.

BANKA POŠTANSKA ŠTEDIONICA AKCIONARSKO DRUSTVO, Belgrade

2.

CRÉDIT AGRICOLE BANKA SRBIJA, A.D. Novi Sad

3.

HALKBANK, Belgrade

4.

EUROBANK AKCIONARSKO DRUSHTVO, Belgrade

5.

PROCREDIT BANKA A.D. Belgrade

1. RAIFFEISEN LEASING DOO Belgrade

All information necessary for participation in the Program can be obtained from the mentioned commercial banks and the leasing company.

Required documentation:

• application form - Form number 1;
• signed written declaration of acceptance of the conditions for allocation of funds - Form number 2;
• proforma invoice or pre-contract (copy);
• picture of the equipment from the pro-invoice/prospect/pre-contract;
• original or certified copy of the certificate from the competent branch of the Tax Administration that the applicant has settled all due public revenue obligations;
• original or certified copy of the certificate from the competent court that the economic entity has been no legally binding prohibition measure was issued performing activities;
• original or certified photocopy of the certificate that the owners and/or responsible persons of the business entity have not been convicted of criminal offenses against the economy.

The public call is open until the available funds are used up. Business entities can submit only one request for the allocation of grants for the purchase of equipment to one bank or leasing company.

Incomplete applications will not be considered. Applications submitted to the office of the Ministry will be disqualified.

On the Internet pages of the Ministry: www.privreda.gov.rs, and Development Agencies: www.ras.gov.rs. the necessary tender documents can be downloaded: Form No. 1, Form No. 2, as well as the Program of Support for Small Businesses for the Procurement of Equipment in 2018, Information on the Method of Implementing the Program, and Information on the Conditions of the Selected Banks and Leasing Companies, in which all the essential elements and rules for participation in this Public Call are defined in more detail.

Information on the method of implementation of the Program

Information on the conditions of selected banks and leasing companies

Form 1 - for economic subjects - equipment

Form 2 - for economic entities 2018

Form 3 - for banks and leasing companies

Program Regulation