Newsletter August 2020

Nina BotevaFounding Partner, Nina Boteva Law Office

ORDINANCE № 2 of 5 August 2020 on the implementation of measure 21 “Extraordinary temporary support for farmers and small and medium-sized enterprises, which are particularly affected by the crisis caused by COVID-19 of the Rural Development Program for the period 2014 – 2020” (hereinafter only the Ordinance) was published in the Bulgarian State Gazette on 07.08.2020. The Ordinance supports farmers, micro, small and medium-sized enterprises and producer groups and organizations that are particularly affected by the crisis caused by COVID-19. The support provided in the Ordinance aims:

1. ensuring the competitiveness of agriculture and the viability of farms;

2. ensuring continuity of the agricultural activities and of the activity of the small enterprises, engaged in processing, marketing or development of agricultural products;

3. preservation of the health of the employees in agriculture.

Financial assistance is provided to applicants who carry out their activities on the territory of the Republic of Bulgaria.

The support under measure 21 “Extraordinary temporary support for farmers and small and mediumsized enterprises particularly affected by the crisis caused by COVID-19” is provided in three submeasures:

1. sub-measure 21.1 “Extraordinary temporary support for farmers COVID 1” – for farmers operating in the sectors “Crop production” for crops of Annex № 1, “Livestock” (cattle, buffaloes, sheep and goats) and / or “Beekeeping“;

2. sub-measure 21.2 “Extraordinary temporary support for farmers COVID 2” – for farmers operating in the “Crop” sector for agricultural crops, other than those in Annex № 1, and / or the “Livestock” sector (pigs and poultry);

3. sub-measure 21.3 “Extraordinary temporary support for small and medium-sized enterprises (SMEs) and recognized COVID 3 producer groups and producer organizations” – for micro, small and medium-sized enterprises processing agricultural products listed in Annex I to the Treaty on the Functioning of the European Union (TFEU), and recognized producer groups and organizations.

The conditions for eligibility of the respective candidates, as well as the supported activities in accordance with the above-mentioned sub-measures are regulated in Chapter I of the Ordinance. It should be noted that financial assistance is provided subject to the following conditions:

1. in the form of a lump sum;

2. only for one of the above-mentioned sub-measures, as their combination is not allowed;

3. up to EUR 7,000 for farmers (eligible for support under sub-measures 21.1 and 21.2) and up to EUR 50,000 for applicants (eligible for support under sub-measure 22.3).