Support for export firms with procurement from Ukraine and/or the Russian Federation and/or Belarus - stopped as from 31 October 2022

The loan is for firms exporting to any geographic area with supplies sourced from Ukraine and/or the Russian Federation and/or Belarus and that have been affected by a decrease in such supplies or an overall increase in the total cost of these supplies. The interest-free loan includes a possible co-funded grant, under the Temporary Crisis and Transition Framework. The co-funded grant is disbursed subject to prior authorisation from the European Commission – for up to 40% of overall funding, within a limit of €500,000.

Italian SMEs and mid-caps, established as companies with share capital, that:

• have filed at least three financial statements for three complete financial years with the Companies’ Register
• have an average overall export turnover in the 2019-2021 three-year period equal to at least 10% of the total average turnover in that period;
• have recorded, based on the last three financial statements (2019-2021), a minimum quantity of supplies sourced from Ukraine and/or the Russian Federation and/or Belarus, compared to overall supplies, equal to at least 5% (10% in the case of indirect supplies of semi-finished goods and finished goods which are instrumental to the production cycle, and in the case of direct and indirect mixed supplies) as certified by an auditor (procedures in Annex 1 of Circular 2)

have identified an increase in procurement costs, which, at the end of the 2022 financial year, is at least equal to 20% of the average of the previous three-year period, or have identified a reduction in procurement quantities which, at the end of the 2022 financial year, is at least equal to 20% of the average of the three-year period, as certified by an auditor (procedures in Annex 1 of Circular 2)

A subsidised “de minimis” loan (interest-free repayment), with co-funded grant under the Temporary Crisis and Transition Framework. The co-funded grant is disbursed subject to prior authorisation from the European Commission – with the aim of maintaining and safeguarding the competitiveness on international markets of export companies affected by the crisis following the war in Ukraine.

Maximum amount that may be financed: up to €1,500,000 depending on the scoring and quantities of supplies to the three areas, and in any case no more than 25% of average revenues resulting from the last two approved financial statements filed by the company.

Maximum grant: up to 40% of the total subsidised loan. The co-funded grant is disbursed, in any case, within the limits of the total maximum amount of the loan under the Temporary Crisis and Transition Framework. The grant is disbursed subject to prior authorisation from the European Commission – in the amount of €500,000 per individual company.

Duration of the financing:

 6 years, of which a 2-year grace period.

Applying for the subsidised loan

When compiling the application, the business must:

• indicate the data for overall foreign turnover recorded in each of the three years (2019-2021), attaching the related VAT returns;
• indicate the method (direct/indirect), type (raw materials/semi-finished goods/finished goods) and quantities of supplies sourced from Ukraine and/or the Russian Federation and/or Belarus, attaching the certification by the auditor (for more details, see Annex 1 of Circular 2)
• declare an increase in the costs (direct and/or indirect) of supplies and expect that, at the end of the 2022 financial year, the average unit cost of Supplies (direct and indirect) from Ukraine and/or the Russian Federation and/or Belarus and/or from alternative geographic supply areas, will be equal to at least 20% compared to the average of the 2019-2021 three-year period and/or declare a reduction in quantities of Supplies (direct and/or indirect) and expect that, at the end of the 2022 financial year, it will register a reduction in quantities of Supplies (direct and indirect) from Ukraine and/or the Russian Federation and/or Belarus, equal to at least 20% compared to the average of the 2019-2021 three-year period.

Checks to confirm the loan:

No later than 31 December 2023, the following is necessary:

• certify, for the 2022 financial year, in a statement and certification by an auditor (for more details see Annex 1 of Circular 2), that at least one of the following requirements has been met:

– an increase in the average unit cost of supplies (direct and/or indirect) from Ukraine and/or the Russian Federation and/or Belarus and/or alternative geographic procurement areas, equal to at least 20% compared to the average of the 2019–2021 three-year period;

– a reduction in quantities of supplies (direct and/or indirect) sourced from Ukraine and/or the Russian Federation and/or Belarus, equal to at least 20% compared to the average of the 2019–2021 three-year period.

The template for auditor certification (according to SIMEST’s template) – available soon

• As from 09.00 hours on 20 September 2022, you can access the Portal to compile and submit loan applications. 
• Each business may submit only one application for this type of loan.
• To access the Portal, you need to join the virtual queue. When it is your turn, you will have a maximum time to compile the application. After this time has lapsed, you will have to join the queue again.
• To compile the application, you must attach (i) the VAT returns for the 2019-2021 three-year period and (ii) certification by the auditor that the requirement for quantities of supplies from the three geographic areas has been met, based on the SIMEST-approved template click here. If the application is sent through a consultant, the contract must be attached. For the purposes of recognising consulting fees for submitting the application, the “Statement of the professional and independent requisites of parties providing advisory services”, which is in the section Annexes must be provided. If not uploaded when submitting the loan application, it will be requested during loan application processing.
• Loan applications may be submitted until 18.00 hours on 31 October 2022, unless the portal closes early, because all available financial resources have already been allocated.
• In any case, submitting an application does not entitle the applicant to have the financing approved. Approval is subject to the successful completion of SIMEST’s application review and the actual availability of financial resources.