Business creation: how much support is available to start a business in the field?

Applications were accepted in May and June of this year, evaluated immediately, and now the first advances are beginning to reach the accounts of rural people who start businesses.

Attractive niches are full of startups

Job creation and economic development are the key to rural vitality. In addition to agricultural production in rural areas, it is no less important to develop alternative businesses. Attractive niches are filled with the creation of rural businesses.

From caring for the environment and laundry services to 3D scanning, a variety of businesses that was launched by the RDP in 2014-2020. The funds and services of the activity area “Support for the start of economic activity in rural areas” are established in rural areas.

It is known that in Lithuania, especially in rural regions, it is very important to promote social inclusion and reduce social exclusion. This is achieved through economic development, so support for small businesses and job creation is definitely needed.

The National Payment Agency under the Ministry of Agriculture (NPA) announces that more than 300 applicants who submitted applications in May and June of this year have already been approved as beneficiaries, so the first evaluated part of the start-up projects of rural companies are paid at 80%. the amount of the allocation for the execution of the project. It is stipulated that the first part of the support must be paid within 10 business days of the decision to grant the support (no support agreement is concluded).

The beneficiaries will be personally informed of the decision to grant the aid in the manner specified in the application. Applicants and grantees can also check the status of their support application by logging into the NMA Information Portal.

Inga Budzevičiūtė, Advisor to the 2nd European Union Support Division of the Ministry of Agriculture, emphasized that it is important for start-up entrepreneurs that support is paid 100%. benefit. It reaches the beneficiaries in two parts: 80%. The full amount of the grant awarded will be paid once the decision to grant the aid has been taken and the remaining 20%. Part of the benefit is paid upon proper implementation of the business plan and submission of a request for payment to the NMA.

The business idea was driven by children.

Nijolė Pileckienė, who founded the UAB Tuk tuk with a funny name in the Lazdijai district, Veisiejai elder, became a new company. The woman said that starting a business is no longer such an easy task.

“The children pushed me to start a company, I had to try”, smiled the businesswoman. However, children who have promoted a business idea do not go into the business themselves. “At least for now,” explained the manager of the company.

The activities of the young company are indicated: installation of plumbing, heating and air conditioning systems, including extension and reconstruction, maintenance and repair. According to N. Pileckienė, so far most plumbing equipment installation and repair services are provided.

“People need these services. We work mostly in individual houses, but there are also requests from companies,” said the businesswoman.

Like 100 percent. payment under the PDR 2014-2020. Support for business start-ups in rural areas is a positive and encouraging impetus for business start-ups. However, the Tuk tuk boss noted that he could not start a supported business with empty pockets.

“It is clear that it is difficult to start a business without support. With the help of the support, we bought a bus and the necessary tools for the job, ”said the woman.

Created three jobs

After receiving support to start a business, N. Pileckienė created a job not only for herself, but also for two more specialists. “We are not limited to the Lazdijai region, if there are orders in the adjacent districts, we will also go there,” he said.

The businesswoman admitted that her enthusiasm was somewhat clouded by the COVID-19 outbreak when work stopped in the spring. Now the activity is recovering. “You could say that we started the business at the wrong time, the coronavir got confused. If it weren’t for these circumstances, perhaps our services would be more intrusive. We started our activity last November, in December, there was no time to accelerate, but now we are entering again ”, said the businesswoman.

The director of the company stated that after receiving support under the PDR 2014-2020. support for the activity “Start-up of economic activity in rural areas”, committed to maintaining employment and working profitably for 3 years.

“It just came to our attention then. After all, people have to pay wages and taxes,” said the startup of the company.

Registration, seating and activities – in a rural area

Request support in the 2014-2020 framework The area of ​​activity “Support for the start of economic activity in rural areas” of the PDR measure “Economic and business development” could be used by recently created natural and private legal entities.

Individuals must not have performed any non-agricultural economic activity since 2018. May 18 to 2019 May 18 or for less than 30 calendar days during the specified period, whether or not income has been received. And private legal entities must register no earlier than 12 months. before the application filing date.

Another requirement is that both natural and private legal persons must meet the requirements of a very small company and be independent (except farmers).

I. Budzevičiūtė, Advisor to the 2nd Division of Support to the European Union of the Ministry of Agriculture, pointed out that the permanent residence of the natural person submitting the application must be declared in the rural area, as well as the registered office of the legal person must register here.

The representative of the Ministry of Agriculture also added that the place of execution of the project must be in a rural area, where the property to be invested must be registered when the construction is financed with support funds. In addition, the properties must be registered in the rural area, where the assets acquired with the support funds for both mobile and non-mobile activities are stored. Productive economic activities must also be carried out and the assets acquired with the support funds must be stored in a property whose place of registration is a rural area.

It takes into account the number of jobs created

The amount of the benefit received depends on the number of jobs created: if at least one job is created, the maximum amount of the benefit per beneficiary can reach 18,800 euros; when at least two jobs are created, up to 37,600 euros.

“Support will be granted and a benefit will be paid if the costs foreseen in the business plan are necessary for the execution of the business plan and the economic activities, are directly related to the supported economic activities and are not less than the amount of support requested. The beneficiary agrees not to sell or transfer to another person the assets acquired with the support funds until the end of the project control period, ”explained I. Budzevičiūtė.

The Advisor of the 2nd Division of Support of the European Union of the Ministry of Agriculture also emphasized that the implementation of the business plan should start no later than within 9 months after the date of the decision to grant the support. And the business plan must be properly implemented, that is, acquire the planned investments, create a job, carry out profitable economic activities, etc.

It is important for beneficiaries to know that the planned business plan must be properly implemented, otherwise the remaining part of the benefit will not be paid and if part of the benefit has already been paid, it will be recovered.

The NMA recalls that this year the measure provides for 25 million euros. EUR and an additional 20.1 million euros allocated by the Ministry of Agriculture. EUR.