Program for incentivizing the development of entrepreneurship through financial support for business beginners in 2022

We hereby inform you that the Ministry of Economy of the Republic of Serbia, in cooperation with the Development Fund of the Republic of Serbia (hereinafter: the Fund), implements the Program for incentivizing the development of entrepreneurship through financial support for business beginners in 2022 (hereinafter: the Program), within the framework of which it allocates grants to entrepreneurs, micro and small legal entities until the available funds are used up, and no later than December 31st, 2022.

The total available grants designated for the implementation of the Program amount to RSD 150,000,000.00 (approximately EUR 1,280,000.00), while the remaining amount of the investment of business entities will be financed from the credits provided by the Fund.

Program funds are intended for financing:

• Purchases of equipment, delivery vehicles (including electric powered mopeds) that are used to transport own products, raw materials, and other means of transport included in the production process (new or used, but not older than 5 years);

• Current maintenance of business or production space cannot exceed RSD 350,000.00 (approximately EUR 3,000.00) from the investment (regardless of whether the space is leased or owned by the applicant);

• Operating costs, which can make up to 20% of the total investment, for which the funds of the Program are requested.
 

Financial framework

Business entities that meet the conditions of the Program can exercise the right to financial support in the form of grants in the amount of 30% of the investment value, or 40% of the investment value for business entities based in the local self-government units classified in the 4th development group. The remaining investment amount will be financed from the Fund’s credit with a repayment period of 5 years, within which there will be the right to a grace period of one year, and where the interest rate will be 1% per year with a bank guarantee or 2% per year alongside other means of security, with the application of the currency clause.

The grant amount that can be obtained by one business entity cannot be less than RSD 400,000.00, (approximately EUR 3,400.00) or more than RSD 6,000,000.00, (approximately EUR 51,000.00).
 

Restriction on the use of grants

Grants cannot be used for:

• Primary agricultural production (cultivation of plant crops and domestic animals);
• Trade activities, excluding activities that have a certain degree of the processing;
• Organizing games of chance;
• Production and sale of weapons and military equipment;
• Trade of oil and oil derivatives;
• Steel production and coal mining;
• The construction industry, with the exception of the production of construction products and final craft-works in construction;
• Transport and traffic;
• Financial services, marketing services, consulting services, market research services, and public opinion polling;
• Production of tobacco and tobacco products;
• Activities of renting and self-service, unless they are for the needs of tourism.
 

Beneficiaries of grants

The right to apply for funds have: entrepreneurs, micro and small legal entity that have been registered in the Serbian Business Registers Agency (hereinafter: SBRA) at least two years prior to the application, i.e. during 2020, 2021 and 2022.
The founder of a legal entity can only be a natural person.
 

Obligations of beneficiaries of grants

The beneficiary of the funds will be obliged, in addition to the credit to be repaid to the Fund, to return the received grant funds in the event that, within a period of 3 years from the date of conclusion of the grant agreement:

• Registers the deletion of entrepreneurial activity from the SBRA or initiates the liquidation or bankruptcy proceedings of a legal entity;
• Alienate the object of investment or lease it;
• Terminates the employment relationship of the founder of a legal entity for an indefinite period of time in that legal entity;
• He is not economically active and does not submit financial reports regularly.
If the mentioned actions are carried out after 3 years, and during the duration of the credit, the beneficiary of the grant will not be obliged to return it.
 

Deloitte has extensive experience in a wide range of advisory services, which allows us to follow through on applications for this competition during all stages. It is up to the client to decide whether to opt for help in a particular stage of the process or to decide to use Deloitte support throughout the entire application process. Deloitte provides assistance in the preparation of the necessary documentation for the application, support in the preparation of the offer and continuous advisory services during the duration of the project.

Contact:

Pavle Kutlesic, LL.M.
e-mail: pkutlesic@deloittece.com

Marko Novakovic, PhD, PMP
e-mail: marnovakovic@deloittece.com