Simplified Approach

Key Facts:

Simplified Approach for SPS and Food Safety

The simplified approach was exclusively developed for investments aimed at achieving full compliance with EU SPS or Food Safety technical regulations and standards, as set forth in the DCFTA/AA, with an investment value of up to EUR 300,000 and grant incentives up to 15%.

Application Forms

Typical investment examples

- Refurbishment of production and storage buildings
- Post harvesting storage facilities
- Cold storage of perishable goods
- Process, packaging and labelling equipment
- Automated process control systems
- Laboratories
- Product and/or HACCP system certification costs

An example from practice

Herbia, a Georgian producer of herbs and vegetables, invested in new greenhouses and a range of production equipment under the SPS approach of the EU4Business-EBRD Credit Line, aligning its processes with the EU Food Safety regulation. The investment also increased the company’s capacity and resulted in higher health and safety standards across the operations. After the successful project verification, the company received at 15% cashback grant, funded by the EU4Business initiative.

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Application Procedure

Pre-approval takes up to 5 days.

Full approval process takes up to 30 business days.

Eligibility Criteria

Project related criteria:

Company related eligibility requirements:

- Investment project compliant with one or more relevant EU Directives in the field of environmental protection, workers’ health and safety and product quality and safety, as listed in the Priority EU Directives
- Or, investment compliant with a EU Directive (other than a Priority EU Directive), confirmed as suitable for compliance by the Project Consultant
- Project not benefitting from another EU grant or any other grant or subsidy available from an international or national donor organization
- The project should be outlined in an acceptable Investment Plan prepared by the SME, with the support from the Project Consultant
- Individual SMEs are eligible for total aggregate loans of up to EUR 3 million, provided that each loan is maximum EUR 300,000 (for SPS projects)
- The loan amount shall not exceed 100% of the investment cost of the relevant project (VAT Excluded)
- Eligible investment costs incurred after the date of the Agreement between the company and a Partner Bank or a Financing Institution
- Each project successfully implemented is eligible for an Investment Incentive payment of up to 15% of the financed amount following Verification Consultant’s check

- SMEs as per EU definition: fewer than 250 employees; a turnover of less than €50 M or total Balance sheet less than €43 M; no more than 50% by shareholders that exceed the SME criteria,
  (http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en and
  http://ec.europa.eu/DocsRoom/documents/15582/attachments/1/translations)
- Operating in a sector that can be open to export
- The business must be registered in Armenia, operating primarily in Armenia, and operating in accordance with the laws of Armenia
- At least 51% privately owned and privately run
- Applicants must meet the usual financing appraisal criteria of a Partner Bank or Partner Financing Institution
- The applicant must comply with the EBRD’s Environmental and Social Policy https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html

Simplified Approach

Key Facts: