The new ERANEK Action: emergency grants for businesses affected by Russia's attack on Ukraine and the international sanctions imposed has been published.

The Action concerns the support – strengthening of businesses in the fur and related goods sector that have been affected by the war situation in Ukraine and the international sanctions against Russia. The grant provided comes to cover in the form of working capital, future operating costs and purchases of raw materials in order to ensure part of the liquidity required for the continuation of economic activities and the operation of businesses, indirectly supporting the preservation of jobs.

Grant to enterprises - Budget of the Action

20 million euros (17 million). euro for SMEs Enterprises with resources from the ERDF and 3 million for Large Enterprises with purely national resources).

The Action is co-financed with funds from Greece and the European Union (European Regional Development Fund – ERDF REACT EU).

Beneficiaries of the Action

Companies in the fur and related goods sector based on the eligible SMRs of the Action, regardless of their legal form.

Grant

The grant per beneficiary company will be awarded as a lump sum to provide liquidity and cover future purchases of raw materials and operating costs.

For businesses established in 2021, regardless of whether they had income from business activity or not, they receive a lump sum of € 4,000.

The maximum amount that can be granted as a lump sum is 60,000 euros per beneficiary enterprise (distinct VAT number).

Basic Conditions for Participation

Eligible enterprises in the Action must, inter alia, meet the following conditions:

a) Submit one Funding Application per VAT number for all the facilities they have.

b) To have carried out the commencement of works at the competent Tax Office by 31.12.2021.

c) Have until 31.12.2021 as the main activity code or as the activity code with the highest revenues one of the eligible SMRs of Chapter 6: "ELIGIBLE AREAS OF ACTIVITY". For businesses that start operations before 01.01.2020, the audit is based on the CAR with the largest revenues, as indicated in the relevant Field of Form E3 (Statement of financial data from business activity) Tax year 2019 submitted in the year 2020. For enterprises that start operations in 2020 or 2021, the audit is based on the main CAR of activity of either the company or the branch.

d) Show exports to third countries in the year 2021 at least 20% of the total turnover of the same year. The turnover from export activity is derived from the declared amounts in the periodic VAT returns (Form Φ2 – Code 348) for the year 2021. The total turnover is derived from the declared amount in code 500 of the E3 form for the year 2021. For businesses that have a fiscal year from July 1 to June 30, the turnover of the fiscal year 1.1.2021 – 31.12.2021 results from the periodic VAT returns of this period. The percentage shall be rounded to two decimal places.

The participation condition is presumed to be fulfilled in the case of companies with operations starting within the year 2021.

e) Show a decrease in their turnover in the first half of the year 2022 by at least 10% compared to the turnover of the first half of the year 2019.

The turnovers are derived from the periodic VAT returns (Code 312) of the respective time periods.

For businesses that have started operations within the year 2019, the discounted per day turnovers of the year 2019 (turnover of the year 2019 divided by the days of operation in the year 2019) and of the AA half of 2022 (turnover of the first half of 2022 divided by 181) are calculated and compared.

The resulting percentage reduction shall be rounded to two decimal places.

The condition of participation is presumed to be fulfilled in the case of enterprises that started operations in the year 2020 or in 2021, as well as in the case of enterprises that in the year 2019 demonstrably did not have income from business activity of any kind.

f) To keep haplographic or duplicative books of n. 4308/2014.

g) Be liable to submit VAT returns.

(h) Operate legally in the premises for which they will apply for aid.

Grant to businesses - Eligible expenditure

The starting date for eligibility of expenditure is ¹ February 2022.

The public funding paid in the form of a lump sum is intended to cover eligible operating costs from the start date of eligibility of expenditure until 31.12.2022.

Indicative costs eligible for the Action, in the context of a simplified cost option and a lump sum calculation, may be the following:

1. Purchases of Useful Goods

2. Purchases of Raw Materials and Materials for Use

3.Professional space rents

4. Energy, fixed and mobile business telephony, water, heating, etc.

5. costs for third party fees (legal, consulting, accounting support, etc.)

6. promotion and networking costs (design and printing of brochures, posters, advertisements, costs of participation in professional exhibitions, corporate website / Creation and / or Upgrade, etc.)

7. Costs of consumables procurement

8. Depreciation of fixed equipment (tangible and intangible)

9. Wage costs of the company's personnel

Electronic Submission Start Date: Wednesday 12/10/2022 at 10:00

Electronic Submission End Date: Friday 09/12/2022 at 15:00.

Online Submission

The application for the grant is submitted electronically through the State Aid Information System (SIS) provided by the Ministry of Development and Investment at: www.ependyseis.gr with the indication: 'Emergency Grant to enterprises affected by Russia's attack on Ukraine and the international sanctions imposed'.

The electronic application for funding may be cancelled by the beneficiary of the aid (by the declared legal representative of the undertaking), provided that an application for cancellation is submitted within an exclusive time limit up to five (5) working days from the final submission of the application for funding and before the start of this evaluation, and up to ten (10) working days before the closing date for the submission of applications for funding.

See detailed information on the Business Grant here.