The strengthening of the measures for business internationalisation started at the height of the COVID-19 pandemic, providing for a broadening not only of the addresses (including Mid-Cap and large companies), but also of eligible expenses. With different regulatory interventions, aimed at lifting up the challenging economic situation, the following targets have been achieved:
We specify that said Euro 800,000 limit needs to keep into account the further aids received by the business in the form of direct subsides, tax benefits and payment facilities or other aids, such as repayable advances, guarantees, loans and participating interests within the limits set forth under the EU Commission’s Temporary framework for State aid measures to support the economy in the current COVID-19 outbreak - COM 2020/C 91 I/01.
It is worth specifying that the Temporary Framework was to end on 31 December 2020, but last 13 October 2020 the European Commission (COM 2020/C 340 I) extended the relevant measures until 30 June 2021 and identified additional temporary State aid measures (support for uncovered fixed costs).
Generally speaking, all businesses with registered office in Italy, either individually or jointly with other entities, which have approved and filed at least two complete Financial Statements, can obtain these grants for internationalisation (for futher information see the table in the PDF).
Large companies exceed the parameters indicated above, whereas Mid-Caps are defined as companies with a number of employees between 250 and 3,000.
In particular, the seven projects which can benefit from the Simest grants are devised for all types of businesses indicated above, with the exception of the “capitalisation” project, dedicated to SMEs and Mid-Caps, with the exclusion of large businesses.
Below are analysed in detail the seven projects provided for by the relevant regulation.
Capitalisation of exporting businesses
This measure is aimed at improving and safeguarding the capitalisation of exporting companies in order to increase their ability to compete on foreign markets.
It is aimed, as mentioned above, at Italian Mid-Caps and SMEs incorporated as joint-stock companies, which in the last two years attained at least 20% of their turnover abroad or at least 35% in the last year (the ratio between foreign turnover and total turnover is to be calculated basing on the VAT returns) and which have a capital strength level - i.e. the ratio between net equity and net fixed assets - in the latest Financial Statements filed not exceeding 2 with reference to industrial and manufacturing businesses or 4 for trading and service businesses.
Furthermore, applicants will be accepted upon condition that they have fully repaid any possible previous similar grant.
Without prejudice to the maximum threshold of Euro 800,000, the amount of the subsidised loan cannot exceed 40% of the business’ net equity as resulting from the last Financial Statements approved and filed. Moreover, the maximum exposure of the business upon resolving on the Financial Statements’ approval (including the loan requested to Simest) cannot exceed 50% of the average revenues of its last two Financial Statements (approved and filed).
The duration of the loan is maximum 6 years, of which 2 years of grace period.
At the end of the two-year period following the issuance of the loan (grace period), the attainment of the following two targets will be assessed:
The outcomes of the assessment on the attainment of the targets above will determine the methods for the repayment of the loan in the following 4 years, whether at a subsidised rate, in case of a favourable outcome, or based on the reference rate, in case of a negative outcome, besides the request for an extension of the possible guarantee or the request of a new guarantee.
Participation in international fairs, exhibitions and entrepreneurial missions
This measure is aimed at the marketing and/or promotion of Italian brands and it finances the participation in fairs and exhibitions in foreign countries and in international fairs held in Italy.
It is addressed to all Italian businesses, regardless of their dimensions, which have filed with the Companies’ Register at least one Financial Statements relevant to one complete FY.
The loan can cover up to 100% of the of the budgeted amount, up to a threshold of Euro 150,000 per each application; the subsidised amount cannot exceed 15% of the revenues as resulting from the last Financial Statements approved and filed. The duration of the grant is maximum 4 years, of which one year of grace period. The business can submit more than one application to receive grants, but each application should be referred to a single initiative for a specific Country and expenses already benefitting from other government subsidies are not eligible for this grant.
This is a grant aimed at supporting the participation in fairs, exhibitions, entrepreneurial missions, promotional events and other missions, including virtual ones, to promote the activity in foreign markets or in Italy (only for international events recognised by AEFI – the Italian association of exhibitions and fairs).
Eligible expenses concern the exhibition area and the relevant fitting-up, staff, logistics, promotional activities and consultancies. In particular, such expenses need to be referred to fairs, exhibitions and missions, whose starting date is subsequent to the date of filing of the application.
Programmes for the introduction into Foreign Markets
This measure is aimed at facilitating the entrance of Italian businesses into new foreign markets by financing the realisation of commercial structures to promote products and/or services realised in Italy or, in any case, distributed with an Italian brand.
It is aimed at all businesses, regardless of their dimensions, which have filed with the Companies’ Register at least two Financial Statements relevant to two complete FYs. This measure concerns the expenses for the realisation of 3 offices, a show room, a warehouse, a shop, a corner and up to 3 after sale support centres in a foreign Country and the relevant promotional activities. The warehouse and the after sales support centre can be financed also if located in Italy, provided that they are strictly functional to the realisation of the foreign programme.
Each application can be referred to a sole foreign Country and maximum two target Countries for the development in the same geographical area and the relevant expenses need to be borne solely for promotional activities and for the relevant business trips of the staff carrying out their activity exclusively abroad. If the business is already present with a structure in the Country were the programme is intended to be carried out, it can further strengthen it.
The maximum subsidisable amount is equal to Euro 4 million, whereas the minimum threshold is equal to Euro 50,000 per single programme. Moreover, the amount of the loan cannot exceed 25% of the average revenues resulting from the last two Financial Statements approved and filed. The total duration of the grant is equal to 6 years, of which 2 of grace period.
Temporary Export Manager (TEM)
This is a grant for the temporary introduction in the business of specialised professionals, i.e. temporary export managers, for the realisation of internationalisation projects in maximum 3 foreign Countries. It is aimed at all businesses, regardless of their dimensions, which have filed with the Companies Register at least two Financial Statements relevant to two completed FYs.
Eligible expenses are those relevant to services provided by said temporary export managers, as resulting from a specific Service Agreement, as well as ancillary expenses strictly related to the realisation of the project devised with the TEM’s support (i.e. marketing and promotional expenses, expenses for the integration and digital development of business processes, expenses for the realisation/modernisation of corporate organisational models, expenses for devising product and/or service innovations/adjustments, expenses for the obtainment of international certifications, licences, trademarks, or other forms of protection of the “made in Italy” brand, as well as expenses for support activities).
The maximum subsidisable amount is equal to Euro 150,000 for each single project (with a minimum threshold of Euro 25,000) and cannot exceed 15% of the average revenues resulting from the last two Financial Statements approved and filed. The grant can last for maximum 4 years, of which 2 years of grace period.
Service companies (incorporated as joint-stock companies) need to have attained at least five internationalisation projects thanks to a TEM in the two years preceding the application, with the exclusion of mere consultancy activities.
E-commerce development
Companies willing to exploit the potentials of e-commerce can finance the development of new e-commerce solutions through the use of a market place or the realisation/implementation of an own IT platform for the marketing and/or distribution of goods or services realised in Italy or having an Italian brand. This measure is dedicated to all businesses, regardless of their dimensions, which have filed with the Companies’ Register at least two Financial Statements relevant to two complete FYs.
Expenses relevant to the following activities are considered eligible:
the creation and development of an IT platform (i.e. expenses for the creation, mobile/app, system setting up, domain, platform dedicated consultancies);
the management/functioning of the platform/market place (i.e. expenses for data security, payment systems, content translation, product certifications, access monitoring, analysis and tracking of navigation data, orders management software and warehouse rental costs);
promotional and training costs (i.e. indexing, web marketing, communication and promotion expenses, as well as for the training of the staff dedicated to the platform management).
The maximum subsidisable amount is equal to Euro 450,000 (with a minimum threshold of Euro 25,000) for the realisation of an own platform and Euro 300,000 for the use of third party market place. The amount of the subsidised loan cannot in any case exceed 15% of the average revenues resulting from the last two Financial Statements approved and filed. The duration of the grant is maximum 4 years, of which 1 year of grace period.
Pre-feasibility an feasibility studies
This subsidised loan is aimed at all businesses willing to evaluate on a preliminary basis the convenience and feasibility of a foreign productive or commercial investment. It is dedicated to all businesses, regardless of their dimensions, which have filed with the Companies’ Register at least two Financial Statements relevant to two complete FYs.
The subsidisable expenses concern business trips, accommodation and travel allowances of internal personnel dedicated to the subsidised initiative, as well as compensations, travel expenses and accommodation of external staff, who need to be engaged with a specific engagement letter. Moreover, a portion of internal personnel’s wages is also covered by the grant up to a maximum amount equal to 15% of the total expenses eligible and reported.
The amount of the subsidised loan cannot exceed 15% of the average revenues resulting from the last two Financial Statements approved and filed, without prejudice to the maximum limits per each single initiative equal to Euro 200,000 for studies aimed at preliminarily assessing the feasibility of a commercial investment and Euro 350,000 for those relevant to production investments. The duration of the grant is maximum 4 years, of which one year of grace period.
Technical assistance programmes
This subsidised loan includes two kinds of interventions:
“Technical assistance for professional training”: this refers to the technical training of on-site personnel after a foreign investment. The subsidisable expenses are: the wages of internal staff for the time dedicated to the technical assistance programme, trips, accommodations and travel allowances of internal personnel assigned to the initiative, as well as compensations, travels and accommodation of external personnel appointed with a specific contract;
“Technical after-sale assistance”: this includes the initiatives relevant to the after-sale assistance, which need to be included in the relevant supply agreement. It is possible to cover an amount equal to up to 5% of the value of the supply of exported capital assets and/or incidental assets, as resulting from the documents attesting the export. Instrumental and/or incidental assets are: assets whose useful life spans over various FYs instrumental to industrial/manufacturing use such as equipment, machinery and plants, as well as incidental assets related to them.
The initiative has to be relevant to the core business of the applicant or of its Group. It is addressed to all businesses, regardless of their dimensions, which have filed with the Companies’ Register at least two Financial Statements relevant to two complete FYs. 100% of expenses can be covered, within 15% of the average revenues resulting from the last two approved and filed Financial Statements and with a maximum amount of Euro 300,000 for the technical assistance and training and Euro 100,000 for the after-sale technical assistance.
The duration of the loan is equal to maximum 4 years, of which one year of grace period.
The application to access the measures
In order to obtain the subsidised loan for the seven projects above, businesses need to file their application with SIMEST S.p.A. through the dedicated web portal, undersign the relevant general terms and conditions and, in the preliminary phase, file all necessary documents.
The application will then be submitted by SIMEST to the dedicated Committee, which will resolve upon the loan application. Basing on SIMEST objectives and depending on the project to be financed, businesses will receive either the entire amount or a part of the loan within 30 days from filing the application.
As a final note, for all projects above - with the exclusion of business capitalisation - businesses will have to submit within a given deadline, not just a detailed report of the expenses borne, but also a final report on the activity carried out and the results attained.
For futher information see the table in the PDF.
