September 16 (SeeNews) - Romania said on Friday it has opened a new line of EU financing worth 105 million euro ($118 million) to give a boost to a project, which aims to create 2,000 new jobs and 1,500 startups.
The financing will be granted to entrepreneurs through local and public authorities, chambers of commerce, public career training providers, universities and NGO's, which can apply to become project administrators under the Romania Startup Plus project. As project administrators, they will select and support the startups, Romania's EU funds ministry said in a statement.
After signing an agreement with the project administrator, the entrepreneurs will receive a subsidy of maximum 24,000 euro, representing the first installment. The second installment worth 16,000 euro will only be extended if the startup posts revenues equivalent to half of the first tranche.
"This funding mechanism in installments is a step towards a smarter financing adapted to the economic reality. The support is not just a numerical quantity, it becomes a tool to boost entrepreneurs that perform in the early stages of their business, " EU funds ministry secretary Dan Barna said.
Access to finance for businesses in Romania is among the lowest in the EU. Only 2% of businesses in Romania, compared to EU average of 8%, have accessed grants or subsidized loans in 2015, according to data from the European Commission.
($=0.8903 euro)