Government Program for supporting entrepreneurs “373”

The Investment Incentive Program "373" is a government initiative implemented by the Organisation for the Development of Entrepreneurship (ODA) in the Republic of Moldova. This program aims to increase access to finance for small and medium-sized enterprises by providing investment loans at favourable interest rates.

The "373" Program involves the Organisation for the Development of Entrepreneurship (ODA), participating banks and Partner Financial Entities (PFEs) providing investment loans. The Association of Banks of Moldova has also been consulted on the Standard Cooperation Agreement.

Small and medium-sized enterprises wishing to support the entrepreneurship development initiative through the "373" Program can apply for membership at.

The "373" Program offers small and medium-sized enterprises greater access to finance through low-interest investment loans. The interest rate for foreign currency loans is 3% per annum and 7% per annum for loans in lei. Loans can be taken out for up to 7 years, with a grace period of up to 3 years.

Under the "373" Program, guaranteeing loans through the Loan Guarantee Fund (LGF) in the ODA portfolio is possible. The financing of the loan interest compensation activity comes from the allocations established in the state budget for the year.

The minimis aid is aid with a value equivalent below the threshold of 2.000.000 lei per beneficiary, granted to the same beneficiary over a maximum period of 3 years, regardless of its form and the objective pursued.

In investment projects involving the establishment of multiannual plantations, only specific equipment and machinery to ensure the production process can be financed under the 373 Program, provided that they do not benefit from other state subsidies.

According to art. 129, paragraph 13) of the Fiscal Code, referred to both in Government Decision 351/2023 and in the Operational Manual of the 373 Program, the unpaid amount of tax obligations up to and including 100 lei is not considered as arrears to the National Public Budget.

In the framework of the 373 Program, the CAEM to which the investment is directed must be indicated. For example, an agricultural producer intends to diversify his activity and develop an investment project in rural tourism. Then, the specific CAEM for the new activity to be financed should be checked.

YES, the reporting of interest for clearing is carried out by the LFS.

The "373" Investment Incentive Program has no restrictions on its funding. Each VET applies its credit risk criteria to such companies.

As far as activities related to car washes are concerned, according to the CAEM code, they are included in activity 45.20 Maintenance and repair of motor vehicles, field of activity Wholesale and retail trade; maintenance and repair of motor vehicles and motorcycles (letter G), which in turn, according to the provisions of the "373" Program, is an ineligible field of activity.

As far as the purchase of photovoltaic panels for the production of electricity for own consumption is concerned, the issue of the scope of activity of the company needs to be clarified, as photovoltaic panels are eligible as the object of the investment. Still, if the purchase of photovoltaic panels is requested for commercial or other activities not listed in Annex 1 of the Cooperation Contract, then the applicant is not eligible.

The applicant is not eligible for the Investment Incentive Program "373".

The financial resources granted to the beneficiary under the credit agreement, within the framework of the "373" Program, cannot be used to finance buildings for residential or administrative purposes, following the provisions of item 16 of the Government Decision No 351/2023, the Programme Operational Manual and the Cooperation Agreement (Annex No 2: Exclusion list, ineligible activities).

According to the provisions of p.16 of the "373" Investment Incentive Program, credits used to finance passenger cars are not eligible for compensation.

The maximum cumulative amount of the balances of loans granted under Program 373 to a beneficiary may be, at most, the equivalent of 15 million MDL at the official exchange rate of the National Bank.

Please be informed that according to the provisions of item 25 of the Government Decision no. 351/2023 for the approval of the Investment Incentive Programm "373", as well as the provisions of the Operational Manual of the Programme and the Cooperation Agreement "the beneficiary, until the full repayment of the loan, shall not be entitled to alienate or transfer in use, in any form, the goods purchased/constructed on account of the loan granted under this Programm".

At the same time, according to the Classification of Activities in the Moldovan Economy (CAEM code 2), the activities of renting and leasing industrial machinery and equipment to customers in exchange for the payment of a periodic rent fall under activity 77 Renting and leasing activities, Administrative and support service activities (letter N), which is not included in Annex No. 1 (List of eligible areas of activity for which the investment credit under the Programme is requested) of GD no. 351/2023.