THE IMPORTANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES

Micro-entreprises, small and medium-sized enterprises have a considerable contribution in the business field by providing a fabulous number of jobs and also by being a real engine for the economic growth of the country.

This being said, we can understand that the enterprises outline and impose a considerable impact on the national and international economy.

There have been adopted various programs to support the enterprises mentioned and to ensure a better financing for them.

Such programs are:

  • Small Business Act;
  • Orizont 2020;
  • COSME Program.

 THE IMPACT OF CORONAVIRUS ON THE BUSINESS FIELD

 In the midst of the upswing in the operation of there business, a new challenge of enormous proportions is arising  in the social and economic environment.

The development of Coronavirus(called COVID-19) has a colossal impact on individuals and, consequently, on all their fields of activity causing significant disturbances on the financial markets and leads to a real economic crises so immediate for all economic sectors and especially for the business field.

WILLING MEASURES

The Romanian State has decided to support these entreprises and has adopted a series of measures that consist in postponing of payments and payment terms for utilities and rents in the case of Small and Medium Entreprises that will obtain an emergency certificate.

Also, the deadline for payment of building tax, land tax and transport tax shall be extended from 31st of march 2020 to 30 of June 2020.

The Romanian Government has considered that is necessary to assure up to 80% of the amount of the financing granted to SMEs, for investment loans,  the maximum amount of the financing being 10 millions Lei.

Another measure adopted by the Romanian Government is granting guarantees for loans/lines of credit for financing work capital, and the maximum amount of these financing will be:

  • 500,000 Lei for micro-entreprises and
  • 1 million Lei for small businesses.

Last but not least, the state will subsidize 100% of the interest for the loans that are going to be guaranteed, for micro, small and medium-sized entreprises and the interest will be subsidized from the moment the loan is granted until 31st of March 2021.

ACTIVE PROPOSALS

The National Council of Small and Medium – Sized Private Enterprises in Romania proposes for adoption by the competent authorities the following measures:

►  Amending the legislation on the Labour Code and making the legislative framework more flexible- temporary work, work from home, tele-work etc.

►  Making operational tools specific to areas in difficulty at this time:

► Offering holiday vouchers immediately

►  Rethinking the schemes for exhibitions and fairs and providing working capital to exporting SMEs

Team BCHLAW

Bucharest 23/03/2020

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The Law Firm ”Christian Bogaru” (BCHLAW) is an international law firm, being ranked amongst the 30 most renowned Law Offices in Romania, having an established experience in International Business Law, with internationally trained lawyers that have a vast and sustained experience in different legal fields, essential for starting, developing, operating a business in Romania and in Eastern Europe. The Law Firm ”Christian Bogaru” has strong assets, such as Romanian and Francophone lawyers, proficient speakers in English, with legal qualification in several European jurisdictions, consolidated legal expertise in several fields of law (corporate law, labor law, mergers and acquisitions, taxes, real estate, transport, criminal business law, GDPR etc.) assisting and representing foreign and Romanian companies of all sizes and reputations (Multinationals, SMEs, etc.)

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23.03.2020