Public Call for grants to micro and small businesses and entrepreneurs to subsidize the cost of purchasing machinery, equipment, and software in 2016

The Secretariat is awarding non-repayable funds totaling 36.493.669,00 dinars, provided for under the Provincial Assembly Decision on the Budget of the Autonomous Province of Vojvodina for 2016, within Program 1509 – Incentives for the Development of Economic Competitiveness, Program Activity 1001 – Support for the Development of Entrepreneurship and Small and Medium-Sized Enterprises, functional classification 411 General Economic and Commercial Affairs, economic classification 454 – subsidies to private enterprises, economic classification 4542 – capital subsidies to private enterprises, funding source 01 00 Budget revenues.
The public call for applications for funding is the basis for receiving de minimis state aid.

GOAL
The aim of the Program is to modernize, expand and increase the volume of production processes, stabilize production, and invest in modern work and production equipment, in order to increase the competitiveness of businesses and foster the overall development of the economy and entrepreneurship in the Autonomous Province of Vojvodina.

PURPOSE OF THE FUNDS
The funds are intended to subsidize or reimburse the costs of purchasing machinery, equipment or software for the purpose of improving existing business activities.
Funding is provided for:
A)    Subsidizing the costs of purchasing machinery, equipment or software on the basis of a pro forma invoice, offer or preliminary contract, which must state only the value of the machinery, equipment or software, excluding delivery, installation, training, customs duties and other related costs, or
B)    Reimbursement of the cost of purchasing machinery, equipment, or software bought and paid for in full after 21 March 2016.
In exceptional cases, on the commission’s recommendation, the purchase of a machine, equipment or software may be subsidized or reimbursed up to 70 percent of its value.
The specified exception applies to business entities whose registered offices are located in municipalities classified below 60% of the national average under the Regulation on the Development Level of Local Self-Government Units. 
AMOUNT OF FUNDING
A) The subsidized amount is approved at up to 50 percent of the total value of the machine, equipment or software (excluding VAT), based on the submitted pro forma invoice or supplier/seller’s offer, or a preliminary agreement with the seller.
B) The reimbursed amount is approved up to a maximum of 50 percent of the total value of the machine, equipment or software (excluding VAT), on the basis of the invoice/delivery note and a bank statement showing payment thereof.  
Under points A) and B), funds are approved for:
1. Machines or equipment worth at least 300.000,00 dinars and up to 2.000.000,00 dinars;
2.    Software worth at least 30.000,00 dinars and no more than 300.000,00 dinars.
Applications will not be considered if the value of the machinery or equipment is up to 600.000, 00 dinars excluding VAT, or the value of the software is up to 60.000,00 dinars excluding VAT.

The amount of the approved grant may be less than the amount requested and does not include VAT.

ELIGIBILITY REQUIREMENTS
Micro and small legal entities and entrepreneurs (hereinafter: competition participants) may apply, subject to the following conditions:
1) that they are registered with the Business Registers Agency no later than 31 December 2014 and have their registered office or registered branch within the territory of the Autonomous Province of Vojvodina;
2)  that they operated profitably in 2015;
3) that they have settled all due public revenue obligations;
4) that no bankruptcy or liquidation proceedings have been initiated against them;
5) that they are not part of a group of related entities in which some members are large legal entities;
6) that the applicant and the supplier of the equipment, machinery, or software are not related parties within the meaning of the Company Law;
7) that, according to their financial statements for 2015, applicants have at least one employee;
8) they are not in difficulty, according to the definition of an undertaking in difficulty under the Regulation on the Rules for Granting State Aid;
9) that during the current and previous two fiscal years (the 2014-2016-year period) they have not received state aid exceeding 23.000.000,00 dinars; and 
10) that they have not received non-refundable funds through the Provincial Secretariat’s calls for proposals to subsidize the costs of purchasing machinery and equipment in 2014, 2015 and 2016.
A competition participant may submit no more than one application to the Public Call, under one basis (reimbursement or subsidization) and for one purpose (machinery/equipment/software).
A competition participant whose application is approved will undertake, by signing a contract, not to dispose of the equipment, machinery, or software, or lease or lend it to another business entity, for at least 36 months from the date the contract is signed. 
DOCUMENTATION TO BE SUBMITTED:
1)    A completed, signed application form, certified with a stamp, for the Public Call (downloadable from the Secretariat’s website, www.spriv.vojvodina.gov.rs);
2) An extract of the business entity’s registration from the APR, dated no earlier than the date of publication of the public call (original or certified photocopy);
3) 1 - Business entities that keep their books using the double-entry bookkeeping system – a photocopy of the financial statement for 2015 submitted to the Serbian Business Registers Agency, 
2 - Business entities that keep their books using the single-entry bookkeeping system – a copy of the income statement for 2015 (Form BU), certified by the Tax Administration,
3 - Flat-rate taxpayers – a photocopy of form KPO, a certificate from the business bank confirming account turnover in 2016, and a photocopy of the tax assessment for income from independent business activity;
4) A certificate from the Tax Administration confirming that all due taxes and contributions have been paid, and certificates from the competent local Tax Administration confirming that obligations related to local-source public revenues have been paid, issued no earlier than 15 October 2016 (original or certified photocopy);
5) A) An advance invoice or offer from the supplier, or a preliminary contract with the seller of the machinery, equipment or software (original or certified photocopy);
B) An invoice or invoice-delivery note or contract-delivery note for the purchased machine, equipment or software, and a bank statement showing payment for it, dated no earlier than 21.03.2016 (original or certified photocopy)
C) The statement included with the application form (on the Secretariat’s website);
6)    Signed and certified written statement by the applicant concerning de minimis state aid received previously.    

SECURITY DEPOSIT
A competition applicant whose funding is approved must submit the following to the Secretariat when signing the agreement:
For machinery and equipment:
- a bank guarantee for the proper performance of the contract, for an amount equal to the subsidy, valid until 31 March 2017, and
- one blank solo promissory note registered with a commercial bank, accompanied by a promissory note authorization.  
For software:
- one blank solo promissory note registered with a commercial bank, with a promissory note authorization.

MAKING A DECISION
The decision on the allocation of funds is made by the Provincial Secretary for Economy and Tourism, on the commission's recommendation.
The decision on the allocation of funds will be published on the Secretariat's website.
After the decision is made, the Secretariat will contact only those competition participants whose applications have been approved for funding.
The competition participant who is awarded funds shall sign a contract.
Applications for the Public Call must be submitted exclusively on the application form, which is an integral part of the Public Call and can be downloaded from the Secretariat's website: www.spriv.vojvodina.gov.rs. The form, together with the required documentation, must be delivered in a sealed envelope to the following address:
Provincial Secretariat for Economy and Tourism, Bulevar Mihajla Pupina 16, 21000 Novi Sad, with the following note on the envelope: “DO NOT OPEN” and “Application for the Public Call for the Award of Non-Refundable Incentive Funds to Micro and Small Businesses and Entrepreneurs to Subsidize the Cost of Purchasing Machinery, Equipment and Software in 2016,” sent by post or delivered in person to the registry office of the provincial authorities.
The deadline for submitting applications is 15.11.2016.
Late and incomplete applications will not be considered.
Recipients who do not have a dedicated account open with the Treasury Administration are required to open one before signing the contract.
Further information is available on weekdays from the Secretariat, by calling 021/487-4248 or 021/487-4072.
***The application form will be posted on Monday, 7 November 2016