SUB-MEASURE 6.2 - SUPPORT FOR THE CREATION OF NON-AGRICULTURAL ACTIVITIES IN RURAL AREAS

PURPOSE:

support facilitating diversification by creation and development of micro and small enterprises in the non-agricultural sector in rural areas to sustainable economic development, job creation and poverty reduction in rural areas

OBJECTIVES:

}  Creating new non-agricultural activities, especially for small farmers and their families and the wider rural small business;

}  The diversification of the rural economy by increasing the number of micro and small enterprises in the non-agricultural sector, developing services and creating jobs in rural areas;

}  Encourage the maintenance and development of traditional activities.

BENEFICIARIES:

Ø  Farmers or members of a rural farm, which is diversifying its activity by establishing a non-agricultural activities for the first time;

Ø  Micro and small enterprises in rural areas, which aim to non-agricultural activities and are undertaking:

}  established in the year of submission of the Application Form (start-up) for nonagricultural activities or older at least 3 fiscal years that have had no activity until its submission

OR

}  Existing, operating exclusively in agricultural and non-agricultural activities which will take place, which have not performed up to the date of application.

ELIGIBILITY CONDITIONS:

Ø  The applicant must submit a business plan containing at least the mandatory rural development in the Regulations;

Ø  The applicant must qualify for eligible beneficiaries;

Ø  The investment must fall into at least one of the types of activities supported by sub-measure;

Ø  Headquarters and workstations must be located in rural areas;

Ø  Work will be performed in rural areas;

Ø  The applicant shall demonstrate, before the second installment payment, carrying out activities commercial production sold or service rendered by the minimum percentage of 30% of first installment payment amount.

GRANTS:

1. Financial support is granted for a period of 5 years and is worth:

-          70,000 Euro / project for productive activities, medical services, veterinary services agritourism accommodation, leisure travel and food.

-          50,000 Euro / project for other activities.

     B. Financial support is provided as a premium in two installments, as follows:

-          First installment: 70% of the amount of support receiving funding decisions;

-          Second installment: 30% of the amount of support within 3 years of receiving funding decision;

The second installment shall be granted only if it finds that the Business Plan has been implemented correctly.

ELIGIBLE COSTS:

Support is granted for activities to fulfill the objectives of the Business Plan.

All costs proposed Business Plan (PA), including working capital, capitalization

enterprise and relevant activities for smooth implementation of approved PA can be

eligible regardless of their nature.

Business Plan should contain the following:

}  initial economic situation of the farmer / household members or microenterprise small entity requesting support;

}  stages and objectives for the development of new activities farmer / household member, of microenterprise or small enterprise;

}  details of the actions needed to develop activities farmer / household member, of microenterprise or small company, such as investment, training or counseling.

NON-ELIGIBLE COSTS:

a) expenditure on purchase of agricultural machinery and equipment related to the activity of providing agricultural services.

b) production and marketing of products from Annex I of the EU Reg 1308/2013.

SELECTION CRITERIA:

ü  diversification of agricultural activities of farmers / farm household members towards non agricultural.

ü  stimulate tourism activities for the purposes of prioritizing agro activities carried out areas with high tourist potential / ecotourism destinations / protected areas.

ü  prioritizing the industry, the purpose of prioritizing productive activities (including crafts) and primary services for the population (medical, social, sanitary-veterinary).

ü  prioritizing sectors with growth potential (textiles and leather, creative and cultural industries, Service activities in information technology, tourism, services to the population of the area rural etc.).

Support will be granted for a maximum period of 5 years under the lump sum to finance the new activities in rural nonagricultural based on a business plan. The grant will support diversification to new activities in rural non-agricultural activities in farms and thus obtaining alternative incomes for the rural population and decrease dependence on agriculture.