The Ministry of Economy, in cooperation with the Development Agency of Serbia and selected commercial banks and leasing companies, implements the "Public call for grants within the framework of the support program for small businesses for the purchase of equipment". BelgradeERSTE BANK A.D. Novi SadEUROBANK AKCIONARSKO DRUSTVO, BeogradCRÉDIT AGRICOLE BANKA SRBIJA, A.D. Novi SadHALKBANK, Belgrade RAIFFEISEN LEASING DOO BelgradeUNICREDIT LEASING DOO BelgradeThe total funds available for the realization of the Program amount to 1,000,000,000.00 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 equipment. The funds determined by the Program are intended for co-financing the acquisition of new production equipment and equipment directly involved in the process of production of exchangeable goods (hereinafter: production equipment) and the execution of construction works, namely:1) production equipment and/or machines;2) transport and manipulative means included in the process of production and internal transport;3) parts, specialized tools for machines or other capital goods;4) construction machinery for the purpose of carrying out construction works.Equipment must not be delivered or paid for in part or in whole before the date of making the decision on granting grants.Funds for the implementation of the Program may not be used for:1) value added tax (hereinafter: VAT);2) covering related costs with the acquisition of equipment such as are: customs and administrative costs, costs of transport, forwarding, storage and manipulation, assembly and installation of equipment, training, etc.;3) covering costs related to the approval and implementation of a bank loan, i.e. financial leasing, such as costs of: processing requests, interest, credit bureau costs for the user, registration of pledges at the Agency for Economic Registers (hereinafter: APR), mobility insurance, exchange rate differences, etc.;4) refund of funds for already acquired (advanced, paid or delivered) equipment;5) loans and installments for loan repayment, as well as for loan rescheduling;6) other expenses that are not in accordance with the purpose of the Program.The right to apply for the competition for the allocation of grants has the following:1) legal entities registered in APR as companies or cooperatives, which are classified as micro or small legal persons in accordance with the Law on Accounting ("Official Gazette of the RS", No. 62/13 and 30/18) according to the financial reports for 2017, as well as2) entrepreneurs registered in the APR.The condition for the cooperative to use the funds of the Program is that the cooperative has harmonized its acts, bodies and operations with the Law on Cooperatives ("Official Gazette of the RS", No. 112/15) and that submitted to a cooperative audit in the last two years.Conditions that must be met by the applicants for the award of grants:1) that they have submitted to one of the banks or leasing companies involved in the implementation of this program:- a completed application for the award of grants with the necessary documentation proving the conditions from this section;- pro-invoice/preliminary invoice/preliminary contract/offer no older than the date of public publication invites;- a picture of the equipment from the pro-invoice;- for economic entities that carry out production/construction activities, and with the APR have a registered activity code different from production/construction, to submit pictures of plants, existing machines or mechanization as well as fixed asset cards for them, three invoices for delivered goods or works from the previous period;2) that they are registered in the APR register no later than December 31 2017;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 2017;4) that no bankruptcy or liquidation proceedings have been initiated against them;5) that they have settled their due public revenue obligations;6) that they are majority privately owned;7) that are not in a group of related parties in which some of the members are large or medium-sized legal entities;8) the purpose and purpose of investing in production equipment is in accordance with the nature of the subject's activity;9) that, according to the records of the Central Register of Compulsory Social Insurance on the number of workers on December 30, 2018, they had at least one employee for an indefinite period, i.e. that the entrepreneur as a founder was liable for contributions based on independent activity or for any on what other basis;10) not to perform activities in the following sectors:- 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 the performance of packaging, sorting, processing and freezing activities, e.g. refrigerators or dryers is not excluded); allowed);- traffic and transport;- production of tobacco products;- any form of trade, tourism or hospitality activities, except for bakeries with industrial production and sales, and catering services;- printing and duplicating audio and video records, excluding printing services;- service activities (including, among others, consulting, marketing, accounting and services market research as well as other information services technology, production and broadcasting of digital media content, except for recycling);- organization of games of chance, lotteries and similar activities;- production and sale of weapons and military equipment;- production and trade of oil and oil derivatives;- production of steel and synthetic fibers and coal mining;- 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 economic entities in other activities, if they do not contribute to the achievement of the specific goals of the Program. The funds of the Program cannot be used for the purchase of equipment produced by the grant applicant, as well as in the case that the business entity was the beneficiary of grants from previous years and did not comply with the obligations undertaken.11) that they are not in difficulties according to the following definition:A business entity in difficulties is a business entity that is unable to use its own funds, the funds of its owners/shareholders or creditors or funds from other sources to prevent losses on the market and which, without the intervention of the state, in the short or medium term, would threaten its survival;The economic entity is in difficulties:- if the liability for its debts is limited, and it has lost more than half of the basic capital, of which in the last 12 months it has lost more than a quarter of the basic capital;- if at least one person is unlimitedly liable for its debts, and in the financial statements it is shown that its capital was reduced by more than half, of which u in the last 12 months, more than a quarter of the capital has been lost;- if it meets the requirements for opening bankruptcy proceedings;The business entity is in difficulties and if none of the conditions from paragraph 1 of this point are met, if there are obvious indicators that indicate that it is in difficulties, such as: growth in losses, reduction in total income, growth in inventory, excess capacity, reduction in cash flows, growth in debt, increase in interest costs and fall or zero net asset value. In the greatest difficulty 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;12) that in the current fiscal year and in the previous two years (in 2017, 2018. and 2019) did not receive state aid, the amount of which, together with the requested funds, would exceed the amount of 23 million dinars.When checking the creditworthiness of a business entity, commercial banks and leasing companies will be guided by the criteria they use in their regular credit, i.e. operations related to financial leasing. 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 frameworkEconomic 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 the equipment are higher than 20,000,000.00 dinars, the user can finance the difference with a larger own participation or increase the credit request from the bank, or the request for financial leasing with leasing company.The amount of approved non-refundable aid in the amount of 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 the deadline for submitting applicationsPrecisely and correctly completed application and accompanying documentation in two copies (one copy is original/certified photocopy and the second copy is a photocopy), in accordance with the 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: BelgradeERSTE BANK A.D. Novi SadEUROBANK AKCIONARSKO DRUSTVO, BeogradCRÉDIT AGRICOLE BANKA SRBIJA, A.D. Novi SadHALKBANK, BelgradeRAIFFEISEN LEASING DOO BelgradeUNICREDIT LEASING DOO BelgradeAll information necessary for participation in the Program can be obtained from the mentioned commercial banks and leasing companies. Required documentation:1) completed application form - Form number 1;2) signed statement - Form number 2;3) pro-invoice or pre-contract (copy) issued after the date of publication of the public call;4) picture of the equipment with pro-invoice/proforma invoice/pre-contract;5) original or certified copy of the confirmation from the competent branch of the Tax Administration that the applicant has settled the due obligations of public revenues, issued after the date of publication of the public invitation. The public call is open until the available funds are used up, and no later than 31.12.2019. year. 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 Ministry's office will be disqualified.On the website of the Ministry of Economy: www.privreda.gov.rs, and the Development Agency of Serbia: www.ras.gov.rs you can download the necessary competition documentation: Form No. 1, Form No. 2, as well as the Program for supporting small businesses for the purchase of equipment in 2019, Information on the method of implementation Program, and Information on conditions of selected banks and leasing company, in which all essential elements and rules for participation in this Public Call are defined in more detail.
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