The INVEST AT HOME program has a budget of 100 million euros and is aimed at those from the diaspora who want to start a business in Romania.
On February 24, the government approved a program that offers Romanians abroad money and facilities to open businesses in the country. The program has a budget of 100 million euros for the next four years and promises grants of up to 20,000 euros, loans with a state guarantee and interest discounts. It is, at least on paper, the most concrete support mechanism for the diaspora so far.
What the support package contains
The Ministry of Finance has published the list of available instruments. Each beneficiary can receive a non-refundable grant of a maximum of 20,000 euros. In addition to this, the state guarantees the loans that the investor contracts with the bank, which means that access to credit becomes easier even for those who have no financial history in Romania. There are also interest subsidies, that is, the state bears part of the cost of the loan, plus tax credits and the possibility of a contribution to the company’s capital. In short: non-refundable money, cheap credit and the state is your guarantor at the bank.
Who can sign up
The program targets Romanian citizens residing outside the country who want to move their activity to Romania. Eligible businesses must be in productive fields or services with high added value. The ministry has yet to detail exactly what is and isn’t on the list, but the wording suggests that it’s looking for businesses that produce, innovate or provide specialized services, not street corner trade. A serious business plan is still needed and a commitment that investment and jobs will be maintained for a minimum period.
How the money is calculated
The 100 million euros do not directly finance all investments. The role of the budget is to act as a lever. State guarantees, granted through the Investment and Development Bank, unlock bank financing that investors would not otherwise have obtained. The government estimates that this mechanism will generate total investments of around 250 million lei in the Romanian economy.
What does this mean for Romanians in Great Britain?
Many Romanians in the UK have at some point thought of returning and doing something at home, but either the lack of start-up capital or the fear that there is no real support has stopped them. This program could change the calculus. Twenty thousand euros is not enough to run a factory, but it covers a good part of the start-up costs of a small business. And a loan with low interest and state guarantee makes the difference between an idea that remains on paper and one that starts.
The problem, as always, will be implementation. It remains to be seen how quickly the funds are released, how much paperwork is involved, whether the banks will also be as open as the state promises.
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