Who can access non-refundable EU funds?
If you have a dream or a project you want to carry out but lack sufficient financial resources, there is a solution for you: non-refundable EU funds.
Todos & Company editorial team · EU funding consultancy since 2006
If you have a dream or a project you want to carry out but lack sufficient financial resources, there is a solution for you: non-refundable EU funds. These are sums of money that the European Union provides to member states, organisations or individuals, without any obligation to repay them. It is a form of financial support aimed at fostering sustainable development, innovation and prosperity across the European continent.
Non-refundable EU funds are a valuable opportunity for the economic and social development of local communities, businesses and various initiatives. However, accessing these funds is not a simple process and requires meeting specific conditions. In this article, we will explore how EU funds are obtained, who can access these sources of funding and what the conditions for access are.
How are non-refundable EU funds obtained?
Non-refundable EU funds are intended for everyone who has an idea or a business plan that can contribute to the progress of Romania and Europe. Whether you are a young entrepreneur with big dreams, a passionate farmer who wants to modernise and expand an agricultural business, a researcher with a revolutionary idea, or a Romanian who has returned from abroad wishing to contribute to the development of their country, there is a chance for you to benefit from non-refundable financial support.
There is a variety of EU programmes covering different fields and objectives, such as agriculture, education, research, culture, the environment or entrepreneurship. Each programme has its own rules and eligibility criteria, which you must know and comply with. Here are a few examples of funding programmes you can apply to:
- Regional Operational Programme (POR): This programme aims to support regional and local development by funding projects relating to infrastructure, economic competitiveness, energy efficiency, environmental protection or urban development.
- Human Capital Operational Programme (POCU): This programme aims to support human resources development by funding projects relating to education, employment, social inclusion or combating poverty.
- Competitiveness Operational Programme (POC): This programme aims to support economic development by funding projects relating to research, innovation, the competitiveness of small and medium-sized enterprises (SMEs), information and communication technology (ICT) or energy efficiency.
- National Rural Development Programme (PNDR): This programme aims to support rural development by funding projects relating to agriculture, forestry, fishing, rural tourism or the conservation of natural and cultural heritage.
These are just a few of the funding programmes available. To find out more about them and about other funding opportunities, you can consult https://mfe.gov.ro/.
What can be financed from non-refundable EU funds?
Non-refundable EU funds are sums of money that the European Union provides to member states, organisations or individuals, without any obligation to repay them. The purpose of these funds is to stimulate Europe's economic and social development, reduce regional disparities and promote innovation and sustainability.
A variety of fields and sectors can benefit from non-refundable EU funding, depending on the objectives and priorities set for each programming period. As regards funding from non-refundable EU funds, we can list the following:
- Digitalisation of SMEs and increasing the competitiveness of the business environment: This area aims to help small and medium-sized enterprises (SMEs) adapt to new technologies and improve their performance and productivity. Funding can be provided through programmes such as the Competitiveness Operational Programme (POC), which offers grants for the purchase of IT equipment, software or digital services, or through financial instruments, such as loans or guarantees, which facilitate SMEs' access to funding.
- Investment in agriculture and rural development: This area aims to help farmers and the rural population to develop economically and socially, diversify their activities and protect the environment. Funding can be provided through programmes such as the National Rural Development Programme (PNDR), which offers grants for the modernisation of agricultural holdings, the processing and marketing of agricultural products, the development of rural services or the conservation of natural and cultural heritage.
- Investment in aquaculture and in increasing the productivity of SMEs operating in this field: This area aims to support the aquaculture sector, which includes the farming of fish, crustaceans, molluscs and other aquatic organisms. Funding can be provided through programmes such as the European Maritime and Fisheries Fund (FEPAM), which offers grants for the modernisation of aquaculture facilities, improving the quality of aquatic products, promoting responsible fish consumption or protecting marine biodiversity.
- Investment in infrastructure: This area aims to support the development of transport, energy, environmental or social infrastructure. Funding can be provided through programmes such as the Cohesion Fund (FC), which offers grants for the construction or rehabilitation of roads, railways, electricity networks, water supply or sewerage systems, wastewater or waste treatment plants, hospitals or schools.
- Investment in research, development and innovation in priority fields for Romania, as well as in information and communication technology: This area aims to support research, development and innovation (RDI) activities that can contribute to greater economic competitiveness, to solving social challenges or to the transition to a green and digital economy. Funding can be provided through programmes such as the Competitiveness Operational Programme (POC), which offers grants for RDI projects in fields such as health, energy, the environment, agriculture, security or space, or through European programmes such as Horizon Europe, which offers grants for transnational and interdisciplinary RDI projects.
- Investment in human capital, through training or professional retraining activities, social services, job creation, the promotion of social inclusion and the fight against poverty and discrimination: This area aims to support human resources development and social cohesion. Funding can be provided through programmes such as the Human Capital Operational Programme (POCU), which offers grants for projects in education, vocational training, employment, social inclusion, and combating poverty or discrimination.
What does it mean to be eligible or ineligible for non-refundable EU funds?
Non-refundable EU funds are sums of money that the European Union provides to member states, organisations or individuals, without any obligation to repay them. The purpose of these funds is to stimulate Europe's economic and social development, reduce regional disparities and promote innovation and sustainability.
To be able to access non-refundable EU funds, you must meet certain eligibility conditions, which vary depending on the funding programme you apply to. These conditions relate both to the beneficiary and to the project.
The beneficiary is the individual or legal entity that requests and receives the non-refundable funding for their project. The beneficiary must belong to one of the categories of beneficiaries set out by the programme in question, such as small and medium-sized enterprises (SMEs), public authorities, non-governmental organisations, research and educational institutions, individuals or interest groups. The beneficiary must also demonstrate their financial, technical and administrative capacity to implement the project.
A project is the set of activities planned and carried out by the beneficiary to achieve a specific objective, in accordance with the rules and procedures set by the funding programme. The project must be relevant, feasible, sustainable and have an impact on the field and region in which it takes place. It must also respect European principles and values, such as equal opportunities, non-discrimination, environmental protection and transparency.
To implement the project, the beneficiary needs financial, material and human resources. These resources can be covered partly or fully by non-refundable EU funds, depending on their type and value. This gives two types of costs: eligible costs and ineligible costs.
Eligible costs are those that can be financed with non-refundable grants, while ineligible costs are those that cannot be financed with non-refundable grants.
Eligible costs are those that are necessary, appropriate and proportionate for carrying out the project. These costs may relate to the purchase of equipment, materials or services, the payment of salaries or taxes, the organisation of events or campaigns, etc. Eligible costs must be justified by supporting documents, such as invoices, contracts or reports.
Ineligible costs are those that are not necessary, appropriate or proportionate for carrying out the project. These costs may relate to transporting machinery to the beneficiary's premises, commissioning, installation of the purchased equipment, staff training, accounting costs, etc. Ineligible costs cannot be covered from non-refundable EU funds and must be borne from your own funds.
The eligibility of costs is set out in the applicant's guide. The applicant's guide is the document that sets the eligibility conditions for projects that can access non-refundable EU funds. The applicant's guide contains information on the objectives, fields, criteria, deadlines and procedures for submitting and evaluating projects, as well as the list of eligible and ineligible costs.
It is important to know the list of eligible and ineligible costs so that you can request the right funding for your project. It is also important to follow the rules and procedures set by the funding programme you are applying to. This will increase your chances of obtaining non-refundable EU funds for your project.
How do you access non-refundable EU funds?
Accessing non-refundable EU funds involves going through a number of steps and meeting certain conditions. In general, these are:
- Identifying the funding programme that suits your project. You need to find out about the objectives, fields, criteria and submission deadlines of each programme and choose the one best suited to your needs and capacity.
- Developing the project. You need to write a business plan or a funding application describing the idea, objectives, activities, results, budget and performance indicators of your project. You must also attach the documents required by the programme, such as identity documents, tax certificates, feasibility studies, permits, etc.
- Submitting the project. You must send the project to the managing authority or to the intermediate body responsible for the programme concerned, before the set deadline. You can submit the project online or by post, depending on the programme's requirements.
- Evaluating the project. Your project will be evaluated by experts on the basis of eligibility, quality and relevance criteria. The evaluation process can take several months, depending on the complexity and the number of projects submitted.
- Signing the funding contract. If your project is approved, you will receive a notification and be invited to sign a funding contract with the managing authority or the intermediate body. The contract will set out the rights and obligations of the parties, the amount awarded, and the terms and conditions for implementing and reporting on the project.
- Implementing the project. After signing the contract, you can start implementing the project according to the agreed plan. You must follow the rules and procedures laid down in the contract and in the programme guides. You must also keep records of the costs incurred and the results achieved.
- Reporting on the project. While the project is being implemented, you must report periodically to the managing authority or the intermediate body on the progress and development of the project. You must submit financial and technical reports attesting to the completion of the activities and indicators set out in the contract. You must also submit supporting documents for the costs incurred.
- Reimbursement of funds. After the reports and supporting documents have been checked, you will receive reimbursement of the funds awarded for the project. Reimbursement may be made in instalments or in full, depending on the specifics of the programme.
Accessing non-refundable EU funds is not a simple or quick process. It takes a great deal of research, preparation and perseverance to succeed.
Non-refundable EU funds: an opportunity for Romania
Romania has been part of the European family since 2007, when it became a member of the European Union. Since then, our country has benefited from non-refundable EU funds, which aim to stimulate economic and social development and cohesion in Europe. These funds are an expression of European trust and solidarity, which helps member states reduce regional disparities and promote innovation and sustainable growth.
At first, accessing EU funds was a challenge for Romania, because of a lack of experience and bureaucratic obstacles. Over time, however, we have managed to adapt, learn and improve our administrative capacity and our capacity to absorb these funds.
The context of these funds in Romania is a complex one. It fits within a multi-annual development strategy that takes into account both our country's specific objectives and those of the EU. Through non-refundable EU funds, the EU wants to support economic growth, job creation, rural development, environmental protection, better infrastructure, and stronger innovation and research.
In Romania, the impact of EU funds can be seen in many fields: projects that have rehabilitated roads, modernised hospitals and schools, stimulated innovative research, supported young entrepreneurs, protected the environment and much more. A visit to any town or village in Romania can show projects carried out with the help of these funds.
However, we must not forget that these funds come with responsibilities. Accessing EU funds requires careful planning, sound management and transparent reporting. Fortunately, the Romanian institutions responsible for administering and monitoring EU funds have made progress in recent years, and transparency and efficiency are increasingly visible.
Another facet of the context is the direct beneficiaries of EU funds. Behind the figures and the large projects are the stories of ordinary people, farmers, entrepreneurs, researchers or artists, who took advantage of these funds to turn their dreams into reality. These success stories show how non-refundable grants can be a real catalyst for change.
In addition, the context of non-refundable EU funds in Romania is one of continuous learning. Each programming period brings new opportunities, but also new challenges. Adaptability, an understanding of society's real needs and the ability to formulate viable projects are essential to maximising the benefits these funds bring.
Non-refundable EU funds are for Romania not just a source of funding, but also an instrument of social and economic transformation. They are proof of a united and solidary Europe that believes in the potential of every nation and in a shared vision of sustainable development. In this context, our responsibility, as beneficiaries and as citizens, is to make sure that these resources are used wisely and with respect for European principles and values.
Who can access EU funds: eligibility and categories of beneficiaries
EU funds are intended for a wide range of beneficiaries, including individuals and legal entities. The main categories of beneficiaries include:
- SMEs and Entrepreneurs: Small and medium-sized enterprises (SMEs) are often eligible for funding in areas such as innovation, technological development and business expansion. They can access funds through programmes such as the Competitiveness Operational Programme (POC), which supports SME competitiveness, or the Human Capital Operational Programme (POCU), which supports employment and entrepreneurship. SMEs can also benefit from funds through financial instruments such as loans, guarantees or venture capital. To access these funds, SMEs must meet certain conditions, such as the number of employees, turnover or field of activity.
- Public Institutions: Local and regional authorities can access EU funds for local infrastructure development, environmental projects and improving public services. They can access funds through programmes such as the Regional Operational Programme (POR), which supports regional and local development, or the Technical Assistance Operational Programme (POAT), which supports administrative capacity building. Public authorities can also benefit from funds through specific mechanisms such as Public-Private Partnerships (PPP) or Energy Performance Contracts (CPE). To access these funds, public authorities must comply with certain rules and procedures, such as the principles of partnership, transparency and public procurement.
- Non-Governmental Organisations (NGOs): Non-profit or non-governmental organisations active in areas such as health, education, culture and environmental protection can obtain funding for their projects. They can access funds through programmes such as the Human Capital Operational Programme (POCU), which supports social inclusion and the fight against poverty, or the Administrative Capacity Operational Programme (POCA), which supports the strengthening of civil society. NGOs can also benefit from funds through specific initiatives such as the Erasmus+ Programme, which supports mobility and cooperation in education, or the Creative Europe Programme, which supports the cultural and creative sector. To access these funds, NGOs must demonstrate the relevance and quality of their projects, as well as their capacity for implementation and reporting.
- Research and Education Institutions: Universities, research centres and other educational institutions can access funds for research, technological development and innovation projects. They can access funds through programmes such as the Competitiveness Operational Programme (POC), which supports research and innovation, or the Human Capital Operational Programme (POCU), which supports education and vocational training. Research and education institutions can also benefit from funds through European programmes such as Horizon Europe, which supports scientific excellence and transnational collaboration, or Erasmus+, which supports mobility and cooperation in education. To access these funds, research and education institutions must demonstrate their scientific competence and performance, as well as the impact and dissemination of their results.
- Individuals: Individuals with innovative ideas can obtain funding for projects that contribute to community development. They can access funds through programmes such as the Human Capital Operational Programme (POCU), which supports employment and entrepreneurship, or the Technical Assistance Operational Programme (POAT), which supports administrative capacity building. Individuals and interest groups can also benefit from funds through specific initiatives such as the Youth Initiative, which supports young people's civic participation and volunteering, or the SME Initiative, which supports small and medium-sized enterprises' access to finance. To access these funds, individuals and interest groups must demonstrate their motivation and their ability to implement projects of public interest.
Non-refundable grants are an important source of funding for the development of the business environment in Romania. They can be accessed by small, medium-sized and large enterprises, as well as by non-governmental organisations and local public authorities.
Non-refundable grants can be used to fund a variety of projects, such as:
- Infrastructure investments, such as building production halls, office space or shops;
- Purchasing new equipment and technology;
- Developing new products and services;
- Marketing and promotion;
- Vocational training for employees;
- Research and development.
Non-refundable grants can contribute to the development of the business environment in Romania in several ways, such as:
- Increasing infrastructure investment;
- Creating new jobs;
- Improving the competitiveness of Romanian enterprises;
- Stimulating research and development;
- Promoting the local economy.
In addition, non-refundable grants can have a positive impact on society and culture, by:
- Reducing poverty and social exclusion;
- Promoting social inclusion and civic participation;
- Protecting the environment;
- Promoting culture and cultural heritage.
To access non-refundable grants, enterprises must apply to the funding programmes run by the implementing agencies. These programmes are available on the website of the Ministry of Investments and European Projects.
To be eligible for funding, enterprises must meet certain conditions, such as:
- Being registered in Romania;
- Having a field of activity that is eligible for funding;
- Having a minimum turnover;
- Having a well-prepared business plan.
The application process for non-refundable grants is complex and can take several months. It is important to consult a specialist consultant to make sure you have all the necessary documents and that your project is eligible for funding.
Non-refundable grants are an excellent opportunity for Romanian enterprises to grow and to contribute to the country's economic development. If you have a business idea or a project that could be funded with non-refundable grants, do not hesitate to apply to one of the available programmes.