In January, the PFR 2.0 Financial Shield will be launched – PLN 35 billion to help companies affected by the second wave of COVID-19
The Polish Development Fund presented the assumptions of the Financial Shield 2.0 programme, which aims to provide financial assistance to companies from 38 industries that had to reduce or suspend their operations due to the epidemiological situation related to COVID-19.
The value of aid for micro, small and medium-sized companies is PLN 10 billion. As in the first financial shield of the PFR, this assistance will be provided quickly, simply and securely through a system prepared by the PFR and banks.
An additional instrument for these companies will be the possibility of cancelling 100% of the subsidy for SMEs obtained under the Shield 1.0. For large companies from all industries requiring support in connection with the pandemic, there is a Shield for Large Companies worth PLN 25 billion.
Financial Shield 2.0 provides for updating its conditions and extending the existing programme.
Since the beginning of the COVID-19 epidemic, Polish companies have already received over PLN 154 billion – of which over PLN 60 billion has been under the PFR 1.0 Financial Shield.
PFR 2.0 financial shield for micro businesses – up to PLN 3 billion in support
- For companies with 1 to 9 employees from 38 industries from the Polish Classification of Activities
- The turnover or balance sum total for 2019 up to EUR 2 million
- Financial subsidies – PLN 18,000 or PLN 36,000 per employee
- Subsidies up to a maximum amount of PLN 324,000
- The amount of the subsidy depends on the number of employees and the decrease in turnover
- For companies that reported a minimum 30% decrease in turnover in 2020 due to COVID-19
- Non-refundable funds on condition of establishment and maintenance of the level of employment within 12 months
- Deadline for submission of applications: January to February 2021 (with EC approval)
PFR 2.0 Financial Shield for small and medium-sized companies – up to PLN 7 billion of support
- For companies with up to 249 employees in 38 industries from the Polish Classification of Activities
- Turnover for 2019 less than or equal to EUR 50 million and a balance sheet total less than EUR 43 million
- Fixed costs not covered by revenue are subsidised by means of a financial subsidy amounting to 70% of the gross loss for the period 1 November 2020 to 30 April 2021.
- Subsidies up to a maximum amount: PLN 3.5 million
- The amount of the subsidy depends on the cost and revenue forecast and gross loss
- For companies that have recorded a minimum 30% decrease in turnover due to COVID-19
- Non-refundable funds on condition that the business is conducted and the subsidy is settled on a financing basis 70% of the gross loss
- Deadline for submission of applications: January to February 2021 (with EC approval)
In addition: The possibility to redeem 100% of the subsidy from the Financial Shield 1.0 (application deadline: after one year from receiving the subsidy from the Financial Shield 1.0)
Financial Shield 2.0 for large companies – about PLN 25 billion of support and making the rules of the programme more flexible
- For companies with 250 or more employees and a turnover of over EUR 50 million
- Update of the terms and conditions and extension of the existing scheme and introduction of a new version of the soft loan, with a new COVID-19 damage period until 31 March 2021
- Deadline for applications: January to March 2021 (with EC approval)
Changes in the formula on the basis of the experience gained to date with the Programme:
- significantly facilitated process for low aid amounts
- returnable nature of the measures with an element of redemption of the aid loan, which is related to the full credit analysis process
- greater flexibility in terms of the funding period extended from 4 to 6 years and cost reduction
What conditions must be met to receive support from the PFR 2.0 Financial Shield?
The conditions that need to be met in order to receive support from the PFR 2.0 Financial Shield vary depending on, among others, the size of the company and the level of decline in revenues.
Conditions for microenterprises
The amount of the subsidy for microenterprises is the product of the number of employees as of 30 September 2020 and the base amount of the subsidy. The amount will depend on the level of revenue decline in the period IV-XII or X-XII 2020 in relation to the same period in 2019.
The maximum amount of funding when the entrepreneur uses both Financial Shields may not be higher than PLN 72,000 per employee.
The financial subsidy shall be non-refundable in full, subject to the cumulative fulfilment of the following conditions:
- to maintain business activities as at 31 December 2021,
- to maintain average employment in 2021 compared to 2020.
Conditions for small and medium-sized enterprises
The support from the PFR 2.0 Shield may be applied for by companies, which in the period IV-XII or X-XII 2020, recorded a decrease in turnover by at least 30% compared to the same period in 2019 due to COVID-19.
The amount of the subsidy for SMEs is the sum of:
- the forecast of the fixed costs which, according to the entrepreneur's best knowledge, may be incurred by it, and
- incurred fixed costs not covered by the undertaking's activities from: gross profit and other sources, such as insurance, other aid received under the Temporary Framework or support from other sources, for a period of 6 months between XI 2020 and IV 2021.
- At the same time, under the Programme the amount cannot exceed the product of the number of full-time jobs and PLN 72,000.
The amount of the subsidy for SMEs covers 70% of the beneficiary's gross loss for the period November 2020 – April 2021:
- the gross loss is calculated excluding the provision for assets
- the gross loss includes support received from other sources
The financial subsidy is non-refundable subject to the cumulative fulfilment of the following conditions:
- maintaining the business activities as at 31 December 2021,
- settlement of the surplus shall take place after 31 October 2021, but there shall be no possibility of compensation for costs incurred in excess of the support received.
- Presentation of the settlement of the net loss based on the financial statements
Rules on the use of subsidies
- The appropriations may be used solely to cover the costs of business activities, including staff remuneration.
- Loans, leases and other similar instruments may not be prepaid out of the funds received.
- Prohibition on the use of funds received for payments to the owner and persons or entities related to the owner of the business
- The funds received cannot be used to finance the acquisition of another company or acquisitions
38 industries will benefit from the support (possibility of change) PKD included in the PFR 2.0 Financial Shield:
- 49.39.Z - Other passenger land transport, not classified elsewhere
- 47.71.Z - Retail sale of clothing in specialised stores
- 47.81.Z - Retail sale of food, beverages and tobacco products conducted at stalls and markets
- 47.82.Z - Retail sale of textile products, clothing and footwear at stalls and markets
- 47.89.Z - Retail sale of other products at stalls and market places
- 56.21.Z - Preparation and supply of food for external recipients
- 55.10.Z - Hotels and similar accommodation
- 55.20.Z - Holiday and short-stay accommodation establishments
- 56.10.A - Restaurants and other permanent catering establishments
- 56.10.B - Mobile catering establishments
- 56.29.Z - Other food service activities
- 56.30.Z - Preparation and serving of beverages
- 59.14.Z - Motion picture projection activities
- 74.20.Z - Photographic activity
- 77.21.Z - Rental and lease of recreational and sports equipment
- 79.11.A - Activities of travel agents
- 79.12.Z - Activities of tour operators
- 79.11.B - Travel agency activities
- 79.90.A - Activities of tour guides and tour operators
- 79.90.B - Tourist information activities
- 79.90.C - Other reservation service activities n.e.c
- 82.30.Z - Activities related to the organisation of fairs, exhibitions and congresses
- 85.51.Z - Out-of-school forms of sports education and sport and recreation activities
- 85.52.Z - Out-of-school forms of artistic education
- 86.90.A - Physiotherapy activities
- 86.90.D - Paramedical activities
- 90.01 Z - Activities related to staging artistic performances - musical groups
- 90.02.Z - Supporting activities for the performance of artistic performances
- 90.04.Z - Operation of cultural facilities
- 91.02.Z - Activities of museums
- 93.11.Z - Operation of sports facilities
- 93.13.Z - Operation of facilities for improving physical condition
- 93.19.Z - Other activities related to sport
- 93.21.Z - Activities of amusement parks and theme parks
- 93.29.A - Activities of mystery rooms, houses of fear, places for dancing and other forms of organised entertainment or recreation
- 93.29.B - Other entertainment and recreation activities n.e.c
- 93.29.Z - Other entertainment and recreation activities
- 96.04.Z - Service activities related to improvement of physical condition
PFR 2.0 Financial Shield Presentation - Support for companies affected by the second wave of COVID-19
The above material is for informational purposes. The Financial Shield 2.0 programme must be notified to the European Commission.