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COVID-19 Summary of European Governments Financial Support squirepattonboggs.com
Executive Summary
While there has been much public focus on the measures European governments have taken to try to contain the spread of the coronavirus
disease 2019 (COVID-19) by restricting circulation and closing down aspects of economic life, every government has a second critical
objective: to preserve as much of the fabric of the economy (e.g. solvent companies with employees who can respond immediately to demand
when it returns) as possible.
Put bluntly, if factories and plants close and those who work there are made redundant, it takes a great deal longer for that capacity in the economy to be re-activated.
The calculation governments have made is that it is worth paying – a lot – to preserve that productive capacity.
The numbers are eye-wateringly large. Governments of all political persuasions are nationalising large swathes of the economy, at least temporarily, and in many
cases, becoming employers of last resort. But lift the lid and you see a very wide range of measures. The very largest sums tend to be loans not grants, though on
favourable terms. Loans do not add to the national debt in the way that grants do. But there are grants as well – governments have recognised that loading virtually
the entire private sector with abnormal debt would create as much of a problem for government as it would for businesses. Alongside the loans and grants, you also
find deferrals of tax and other payments – which, with extremely low interest rates, are close to cost free to government.
Governments can help a company’s cash position in three ways – by giving it money, by lending it money and by relieving it of some bills. European governments are
doing a mix of all three.
They are doing some other things, too, to try to keep companies in business. Like temporarily relieving Directors of some Duties, including not to trade if you are not
financially viable. Or suspending redundancy or insolvency processes. The message is clear: keep your company in being, even if it is not doing anything. Are the
measures announced likely to achieve that? In varying degrees, probably yes. But they are also storing up significant problems for the future, and not just of
government debt. Decisions taken by corporates to access relief schemes come with conditions in some countries. And all such decisions may come under scrutiny in
the future after the crisis is past, with the potential for litigation or regulatory intervention. How forgiving will society be if the private sector is seen after the crisis to
have just looked after itself (despite preserving the fabric of the economy being a clear government objective)?
Free money is never free. In some cases, this support comes with explicit conditions; in other cases, with expectations. But in all cases, company boards will need to
consider carefully which support schemes are best, and how best to access them, in the expectation of future scrutiny.
Matthew Kirk
International Affairs Advisor, London
T +44 207 655 1389
matthew.kirk@squirepb.com
Squire Patton Boggs | COVID-19: Summary of Government Financial Support to Businesses - EuropeCONTENTS
BELGIUM 1
CZECH REPUBLIC 6
EUROPEAN UNION (EU) 9
FRANCE 15
GERMANY 23
ITALY 29
POLAND 37
SLOVAKIA 43
SPAIN 46
UNITED KINGDOM 48
iCOVID-19: Summary of Government Financial Support
to Businesses as at 10 April 2020
Belgium
Financing Facility Support
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Federal The federal state will provide a guarantee All “viable” non-financial All new loans (excluding re- The scheme is expected to The measure has been
Guarantee of €50 billion for certain loans issued by companies financings) with a maximum apply automatically. announced and should be
Scheme financial institutions in Belgium term of one year (unless implemented shortly.
SMEs extended) entered into prior to
Any losses that are suffered will be 30 September 2020 (unless
More information
apportioned between the federal state and Not-for-profit organizations extended) will be covered by
can be found here the financial sector: the federal guarantee.
(in French), here Self-employed
(in Dutch) and ‒ First loss of 3% to be supported by
here (in English). the financial sector
‒ Losses between 3% and 5% shared
equally between the financial sector
and the federal state
‒ For losses in excess of 5% the
federal state will bear 80% of the loss
Repayment For existing loan agreements (not leasing All “viable” non-financial The applicant will need to Applications to be lodged with Available now.
Moratorium or factoring agreements), companies, self- companies prove that it is established in the relevant credit institution.
Scheme employed workers and individuals can Belgium, is experiencing
request a moratorium until 31 October SMEs financial difficulties resulting
2020 on their loan repayment (principal from the COVID-19 virus, that
More information payments only not interest payments Self-employed it is up–to-date on its loan
can be found here which remain due) obligations (without payments, tax and social
(in Dutch) and any penalties becoming due). Homeowners experiencing security payments, that it has
here (in French). financial difficulties in respect complied with all its
of their mortgage payments contractual obligations vis-à-
vis its bank lenders over the
12 month period prior to 31
January 2020 and it is not
subject to any debt
restructuring measures.
The homeowner will need to
demonstrate financial
difficulties in connection with
COVID-19, that it is up-to-date
on their mortgage payments
and its financial means are
lower than €25,000.
1COVID-19: Summary of Government Financial Support
to Businesses as at 10 April 2020
Belgium
Other Financial Support
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Federal Tax A payment plan, and exoneration from Companies and self-employed Companies or self-employed Application to be made to the Available now.
Relief Scheme penalties and late payment interest, can be who are affected by the Federal Tax Authority by 30
negotiated with the federal tax authorities COVID-19 crisis (must provide June 2020 at the latest.
More information for: evidence)
‒ Wage withholding tax
can be found here ‒ VAT Fraud related tax debts are not
(in French) and ‒ Corporate Income Tax eligible.
here (in Dutch). ‒ Income Tax
Other Federal Extension for the declaration of Corporate Companies Automatic Automatic Available now.
Tax Measures Income Tax, Non-residents Tax and Not-
for-profit income tax until 30 April 2020 (for Not-for-profit
More information those that were due on 16 March 2020.
Self-employed
can be found here
An extension of two months is granted for
(in French) and the payment of Corporate Income Tax,
here (in Dutch). Non-residents Tax and Not-for-profit
income tax (for 2018 revenue in respect of
taxes that have established after 12 March
2020).
Extension for VAT declarations until 7 May
2020 for those that were due in March
2020 and for the first quarter of 2020).
VAT client lists can be filed until 30 April
2020.
VAT payments due in respect of the
February and March declarations and for
the first quarterly declaration of 2020 are
postponed until 20 June 2020.
The due date for the payment of wage
withholding tax payments is extended until
13 May 2020 (for the February declaration)
and 15 June 2020 (for the declarations of
March 2020 and the first quarterly 2020
declarations).
2COVID-19: Summary of Government Financial Support
to Businesses as at 10 April 2020
Belgium
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Social Security The payment of social security Companies Companies that have been Automatic for companies in Available now.
Measures contributions can be postponed until 15 shut down due to Covid-19 or certain specific sectors and
December 2020. who have decided to shut those that were required to
More information down close (such as restaurants,
bars, leisure businesses,
can be found here cultural and sport related
(in French) and businesses).
here (in Dutch).
Upon request for other
companies that have decided
to fully shut down (i.e., whose
production and sales activities
have stopped).
Temporary Under the temporary unemployment Companies None Application to be made to the Available now.
Unemployment regime, an employer can suspend wage Belgian National Employment
for Force payments and workers will receive Office (ONEM).
Majeure unemployment benefits corresponding to a
percentage of their wages from the federal
authorities.
More information
can be found here This applies to blue collar and white collar
(in French) and workers.
here (in Dutch).
The application procedures have been
simplified given the COVID-19 crisis.
Other measures The Flemish Region has announced, Companies, self-employed Various depending on the Various formalities depending Most measures are now
in the Flemish among other measures: and individuals in the Flemish measure. on the relevant measure. available.
Region Flanders ‒ Indemnity payments of €4,000 for region
companies that have had to close as
a result of COVID-19; more
More information information available here (in Dutch)
can be found here ‒ €160 payment per day if a self-
(in Dutch). employed worker or company has
been required to stay closed since 6
April 2020; more information available
here (in Dutch)
‒ €3,000 compensation payment for
companies whose turnover has been
3COVID-19: Summary of Government Financial Support
to Businesses as at 10 April 2020
Belgium
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
affected by COVID-19; more
information available here (in Dutch)
‒ Deferral of tax payments in respect
regional taxes; more information
available here (in Dutch)
‒ Extension of an existing guarantee
scheme to help COVID-19 affected
companies
Other measures The Walloon Region has announced, Companies, self-employed Various depending on the Various formalities depending Most measures are now
in the Walloon among other measures: and individuals in the Walloon measure. on the relevant measure. available.
Region ‒ Indemnity payments for SMEs and region
self-employed that have had to shut
down as a result of COVID-19 (up to
More information €5,000); more information available
can be found here here (in French)
(in French). ‒ Deferral of tax payments in respect
regional taxes (e.g. Brussels city tax)
‒ Extension of an existing guarantee
scheme to help COVID-19 affected
companies
‒ New low interest rate/moratorium on
loan repayments for certain hard-hit
sectors
Other measures The Brussels Region has announced, Companies, self-employed Various depending on the Various formalities depending Most measures are now
in the Brussels among other measures: and individuals in the Brussels measure. on the relevant measure. available.
Region ‒ Indemnity payments for SMEs in region
certain sectors only that have had to
close as a result of COVID-19 (up to
More information €4,000)
can be found here ‒ Deferral (or even waiver) of tax
(in French) and payments in respect regional taxes
here (in English). ‒ A guarantee scheme to help COVID-
19 affected companies
4COVID-19: Summary of Government Financial Support
to Businesses as at 10 April 2020
Belgium
Key Contacts
Bart Vanderstraete
Partner, Brussels
T +322 627 1120
E bart.vanderstraete@squirepb.com
Amaury de Borchgrave d’Altena
Counsel, Brussels
T +322 627 7647
E amaury.deborchgrave@squirepb.com
5COVID-19: Summary of Government Financial Support
to Businesses as at 09 April 2020
Czech Republic
Financing Facility Support
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Programme COVID I Loans provided by the Czech-Moravian Small and medium Businesses must prove that Applications may be The available funds have
Guarantee and Development Bank enterprises (SMEs) their operations were limited, submitted via electronic form already been distributed and
Further information
(ČMZRB) without interest and without SMEs are allowed to use paused or otherwise affected on the website of ČMZRB. the scheme is no longer open
can be found here. fees. by the extraordinary to new applicants.
these finances to purchase
Loans are provided in amounts from CZK equipment or intangible measures of the government
500,000 to CZK 15 million with two years assets, to purchase or to fight the spread of COVID-
maturity and possible deferral of finance inventory and to 19.
repayment up to 12 months. finance business operations.
Programme COVID Commercial loans provided by one of the SMEs are allowed to use the Businesses must prove that Application is submitted via The first round of applications
II commercial banks in the programme, with funds to pay wages, utilities, their operations were limited, electronic form available has been completed, and the
a guarantee provided by the ČMZRB. outstanding or future invoices paused or otherwise affected here. scheme is now paused.
Further information relating to materials or by the extraordinary Another round of distributions
can be found here. Loans may be provided up to CZK 15
million, with up to 80% of the principal supplier invoices, or to measures of the government is expected within 10 days as
amount guaranteed by the ČMZRB. finance its receivables or to fight the spread of of 3 April 2020.
inventory. coronavirus.
Guarantee is provided for a maximum of
three years.
Subsidies Subsidies for businesses to adopt new SMEs Detailed eligibility criteria The programme will be open The finances would be
programme technologies (e.g. online retailing) to have not yet been published. for applications as of 14 April available following the
"Technologie continue the business despite restrictive 2020. application being approved.
COVID" measures.
Individual projects may receive subsidy
Further information
from CZK 250 thousand to CZK 200
can be found here. million.
Subsidies Subsidies for businesses offering new All businesses, including The project has to focus on The programme is opened for The finances would be
Programme "Czech solutions for fighting the spread of start-ups and scientific production of medical applications. available following the
Rise Up" coronavirus (such as new types of institutions. supplies or related to the fight application being approved.
respirators or ventilators). against COVID-19 in other
Further information way.
Czech Ministry of Industry and Trade
can be found here
offers to cover all necessary costs of The funds can be used only
and here. introduction of these technologies to the to alter technology or prepare
market. for production of medical
The budget for this programme is supplies, or implement
expected to be around CZK 200 million, software to produce medical
individual subsidy may amount to supplies or adopt other
maximum of CZK 5 million. measures related to fight
against COVID-19.
6COVID-19: Summary of Government Financial Support
to Businesses as at 09 April 2020
Czech Republic
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Direct payments to Direct payment of CZK 500 for each day Only self-employed The individual must prove Applications should be sent to The finances would be
self-employed of the bonus period to self-employed individuals who were that their financial situation the Tax Office. available following the
individuals individuals. registered as self-employed worsened due to COVID-19 application being approved.
Bonus period is from 12 March 2020 to 30 before 12 March 2020, and measures. The Ministry of The program should be open
Further information do not receive unemployment Finance indicated that an as of mid- April 2020 (subject
April 2020.
can be found here. benefits. affidavit would be sufficient. to the approval of the
necessary legislation).
Other Financial Support
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Suspension of loan Repayment of loans can be suspended for All debtors, including Repayment of loans A request must be sent to the N/A
repayments three to six months upon request of the consumer loans or concluded and drawn before creditor and must include
debtor. mortgages. 26 March 2020, can be number of months (up to six
Further information suspended. months maximum) for which the
can be found here. (The measure is subject to approval by
debtor wishes to suspend the
the Parliament.)
repayment.
Ministry of Finance Suspension of penalties for late All tax payers No application needed.
measures submission of tax returns (up until 30 June
2020)
Further information
can be found here. Suspension of penalties for late
submission of control statement
Suspension of payment of the tax
advance due in June
Suspension of penalties for late
submission of tax return on real estate
taxes (up to 31 August 2020).
Suspension of obligations of businesses
to electronically register taxes during the
state of `emergency state and for a period
of three months afterwards (this measure
is subject to amendment of the act on
electronic registration of taxes)
Loss carry back - right of businesses to
apply tax loss retroactively for 2018, 2019
7COVID-19: Summary of Government Financial Support
to Businesses as at 09 April 2020
Czech Republic
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
and 2020 (this measure is subject to
amendment of the tax code).
Insurance for large Insurance up to CZK 330 million (including Businesses with at least 250 The applicant must prove it Information on how to apply Availability of funds if subject
businesses existing insurance products) per individual employees was not in existential crisis will be available after the to adoption of the necessary
provided by the Export Guarantee and before 12 March 2020. necessary legislation is legislation, which is expected
Further information Insurance Corporation (EGAP) adopted in the Parliament. to be by the end of April
can be found here. The funds may be used to
(Subject to amendment of the relevant sustain liquidity and finance Applications will be submitted 2020.
legislation). operations. to EGAP.
Suspension of Self-employed individuals are exempted Self-employed individuals No application is required. The measure is subject to
social security from the obligation to pay monthly social amendment of the Act on
contributions security contributions from March to social security, which is now
August 2020. discussed in the Parliament.
Further information
can be found here.
Suspension of duty Entities are allowed not to file for All companies. The indebtedness must have N/A N/A
to file for insolvency insolvency in case of indebtedness been caused by COVID-19
caused by the COVID-19 measures. measures, and the entity’s
Further information finances must have been
can be found here. Creditor filings for insolvency will be
disregarded. sound before 12 March 2020.
(The measure is subject to approval by The obligation to file for
the Parliament.) insolvency is suspended until
six months after the COVID-
19 measures are terminated.
If a creditor files for
insolvency of its debtor, such
filings will be disregarded if
submitted between 12 March
2020 and 31 August 2020.
Key Contacts
Danica Šebestová Veronika Vaněčková
Partner, Prague Associate, Prague
T +420 221 662 263 T +420 221 662 265
8
E danica.sebestova@squirepb.com E veronika.vaneckova@squirepb.comCOVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
European Union (EU)
Financing Facility Support
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance Relevant links
available? eligible? for applying? be available?
Coronavirus Initiative proposed by the European The measures are The eligibility criteria are set The European Funds available from 1 European
Response Commission to provide a addressed to member out through the principle Commission has set February 2020. Commission
Investment coordinated approach for member states. The respective pieces of legislation (and their up a task force to The co-legislators Communication on
Initiative (CRII) states to manage the public health federal or regional proposed amendment by coordinate the (Council of the EU and the broader
emergency. authorities allocate the Regulation on CRII): allocation of funds European Parliament) coordinated
A total of €102 billion is envisaged: funds. o Regulation (EU) between member have approved the response for the
Particular focus should 1301/2013 on the states. This will proposal. COVID-19 outbreak
o €37 billion European Structural determine the
Investment Fund (ESIF) be given to: European Regional European
Development Fund funding each region Commission Press
o €65 billion divided into: (i) €7.9 o Provide support to will be receiving to
the healthcare o Regulation (EU) Release on the CRII
billion from the EU budget, (ii) allocate to measures
€29 billion of structural funding sector 1303/2013, for the various businesses in need.
across the EU and (iii) €28 o Provide liquidity to EU Structural Funds European
billion of as of yet unallocated corporates (e.g. o Regulation 508/2014 on Commission Q&A on
structural funds SMEs) European Maritime and the CRII+
On 2 April 2020, the European o Support short time Fisheries Fund Regulation (EU)
Commission launched the CRII+, national working The specific criteria on the 2020/460 on the
which is a new set of measures to schemes allocation of funds to regions Coronavirus
mobilise support against the are determined in partnership Response
COVID-19 outbreak. These are agreements and programs Investment Initiative
flexible measures that would allow negotiated between the published in the
for: European Commission and Official Journal of the
the respective member states. EU on 31 March
o Transfer possibilities across the 2020 and entered
three cohesion policy funds (the The federal or regional into force on 1 April
European Regional authorities direct the funds to 2020; it is directly
Development Fund, European their regions according to the applicable to member
Social Fund and Cohesion needs and based on the states
Fund) criteria determined by each
o Transfers between the different individual partnership
categories of regions agreement.
o Flexibility related to the thematic
concentration of funds
o Simplification of procedural
steps linked to programme
implementation, use of financial
instruments and audit
9COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
European Union (EU)
What help is What does the help entail? Which companies What is the criteria (if How to apply When will the finance Relevant links
available? are eligible? any) for applying? be available?
Financial Aid Financial assistance under the Available to countries A country is eligible if major Application criteria Funds available from 1 European
under the European Union Solidarity Fund negotiating their natural disasters are striking for countries to February 2020 (funds can Commission press
European Union (major public health emergency) to accession to the EU to its regions. apply for the be applied retroactively). release
Solidarity Fund assist countries negotiating their assist with public health In particular the Regulation European Union The European Regulation (EU)
accession to the EU. systems and socio- (EU) 2020/461 extends the Solidarity Fund can Commission would accept 2020/461 on the
Immediate financial assistance up to economic recovery. legislation to "major public be found on the applications under the Financial Aid for
€38 million announced for the Respective countries to health emergency".2 website. European Solidarity Fund countries negotiating
Western Balkans' public health decide on allocation of Respective country's authority Applications need to until 24 June 2020. accession to the EU
systems to tackle the health funds. to decide how to allocate be submitted to the Co-legislators (Council of published in the
emergency caused by COVID-19 funds. European the EU and European Official Journal of the
and reallocation of €374 million to Commission within Parliament approved the EU on 31 March
help the socio-economic recovery1 12 weeks of the legislation. 2020 and entered
of the region. date of the first into force on 1 April
The public health need is divided official action 2020; it is directly
between: against the applicable to member
emergency. states
o Albania and North Macedonia -
up to €4 million each
o Bosnia and Herzegovina - €7
million
o Montenegro - up to €3 million
o Kosovo - up to €5 million
o Serbia - up to €15 million
Liquidity €1 billion available in an EU budget Small and medium Eligibility criteria unclear for The EIB is working Funds available from 1 European
Measures for guarantee to the European enterprises (SMEs) the time being. The EIB is with the European February 2020 Commission
SMEs Investment Fund (EIF) via the defined under EU working with the European Commission to (retroactive application). Communication on
European Fund for Strategic recommendation Commission to adapt existing adopt a faster the broader
Investments (EFSI). 2003//361 (further product features. approval process. coordinated
The EIF will provide liquidity and information available response for the
guarantees to banks, mobilising €8 here). COVID-19 outbreak
billion in working capital European Investment
financing. Bank Press Release
1
€46.7 million to Albania, €73.5 million to Bosnia and Herzegovina, €50 million for Montenegro, €62 million to North Macedonia, €78.4 million to Serbia and €63 million to Kosovo.
2
Defined as "any life-threatening or otherwise serious hazard to health of biological origin in an eligible State seriously affecting human health and requiring decisive action to contain further spreading resulting in a
public financial burden inflicted on the eligible State for emergency response measures estimated at over EUR 1 500 000 000 in 2011 prices, or more than 0.3% of its GNI."
10COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
European Union (EU)
What help is What does the help entail? Which companies What is the criteria (if How to apply When will the finance Relevant links
available? are eligible? any) for applying? be available?
Liquidity In addition, the European
Measures for Investment Bank (EIB) proposed to
SMEs mobilise another €40 billion of
financing divided into:
€20 billion of financing Dedicated
guarantee schemes to banks based
on existing programmes for
immediate deployment
€10 billion of financing dedicated
liquidity lines to banks to ensure
additional working capital support
for SMEs and mid-caps
€10 billion support dedicated asset-
backed securities (ABS) purchasing
programmes to allow banks to
transfer risk on portfolios of SME
loans
Temporary State aid (i.e. government support All companies The relaxation of state aid Application for state Available from 1 February Communication for a
Framework for that gives a company a competitive requesting state aid rules is available for: aid ordinarily follows 2020 until the end of Temporary
State Aid advantage over other companies) is from their governments. o Direct grants, selective the broader state December 2020. Framework for State
prohibited, unless there are justified Among others: tax advantages and aid procedures Aid measures
reasons of general economic advance payments - under Article 107 of European
development. o Three French the Treaty of
support schemes Member states can set up Commission press
The framework provides flexibility to schemes to grant up to Functioning of the release
related to EU.
the existing state aid rules and the commercial loans €800,000 to a company in
European Commission has and credit lines order to address urgent There is, however, a
approved various state aid (here) liquidity needs much faster
schemes. o State guarantees for procedure of
o Danish guarantee approval under
scheme for SMEs loans taken by
companies from banks - these flexible rules:
(here)
Member states can o Member state
o German loan provide guarantees to submits a state
programs within ensure banks keep aid scheme
promotional bank providing loans to
(here) o European
customers who need them Commission will
o Italian support respond within
scheme for supply of days (thus far it
medical devices and has been 48
PPE (here) hours upon
receipt)
11COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
European Union (EU)
What help is What does the help entail? Which companies What is the criteria (if How to apply When will the finance Relevant links
available? are eligible? any) for applying? be available?
Temporary UK CBIL scheme to o Subsidized public loans
Framework for support SMEs (here)3 to companies - Member
State Aid states can grant loans
with favourable interest
rates to companies to
cover immediate working
capital and investment
needs
o Safeguards for banks
that channel state aid to
the real economy - Some
member states plan to
build on banks' existing
lending capacities, and
use them as a channel for
support to businesses,
particularly SMEs; the
communication clarifies
that such aid is
considered as direct aid to
the banks' customers, not
to the banks themselves,
and gives guidance on
how to ensure minimal
distortion of competition
between banks
Short-term export credit
insurance - Designation of
countries as "not-marketable
risks"4, enabling short-term
export credit insurance to be
provided by the state
3
Considering that the UK is currently under the transition period of its withdrawal from the EU, EU law remains applicable to the UK. Thus, the UK's eligibility for such funding remains and, as such, it is aligned with the
remaining UK's contribution to the EU budget.
4
As marketable risks can be temporarily unavailable due to the current crisis, member states may use the exemption for non-marketable risks of paragraph 18 (d) of the Communication from the Commission on short-
term export-credit insurance: "if the Commission, after having received a notification from a Member State, decides that due to a shortage of export-credit insurance, certain risks are temporarily non-marketable for
exporters in the notifying Member State." A marketable risk as defined under the communication is "commercial and political risks with a maximum risk period of less than two years, on public and non-public buyers of
all Member States, Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland, United States of America."
12COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
European Union (EU)
What help is What does the help entail? Which companies What is the criteria (if How to apply When will the finance Relevant links
available? are eligible? any) for applying? be available?
RescEU Increase in the total budget of Reorganisation of EU The Commission will finance The stockpile will be Available from 20 March Amended Budget
stockpile rescEU5 stockpile of medical spending for the year in 90% of the stockpile. hosted by one or 2020. here.
equipment (ventilators, protective line with the latest The Emergency Response several member European
masks and essential medical gear) priorities to secure Coordination Centre will states. The hosting Commission press
to €80 million. funding for these manage the distribution of the state will be release.
The proposal includes further operations. equipment to ensure it goes responsible for
COVID-19 related financial support: where it is needed most procuring the
based on a fast-track public equipment.
o €350 million of migration
management assistance to procurement process. Member states that
Greece host rescEU
stockpiles can apply
o €3.6 million for the European for a direct grant
Centre for Disease Prevention from the European
and Control Commission. 90%
o €100 million to help Albania of the grant covers
recover from the devastating costs of the
earthquake on 26 November stockpile and the
2019 remaining 10% will
o €3.3 million additional funding be covered by the
for the European Public respective member
Prosecutors' Office (EPPO) to state.
boost its 2020 budget
Emergency The European Commission decided Addressed to member European Commission to Member states to From 1 February 2020 Second version of
Support to directly support the healthcare states' healthcare manage the funding process request funding applicable until 31 Amended Budget
Instrument for systems of EU member states. The systems. and set out the criteria for from the European January 2022. (retroactive here.
the healthcare Commission will thus mobilise: funding based on partnership Commission. application). Proposal for a
o €3 billion from the EU budget, agreements with respective Further application Council of the EU needs Council Regulation to
sector member states, as laid out in criteria to be
of which €2.7 billion will be to approve the proposal activate emergency
channelled through the the humanitarian aid determined by for a Regulation to support.
Emergency Support Instrument framework (Council partnership become official EU law.
Regulation (EC) 1257/96). agreements European
o €300 million though the rescEU between a member Commission press
medical equipment capacity Indicative (but non- release.
exhaustive) actions in scope state and the
These funds are available under the can be found on ANNEX 1 of European
EU's General Budget. the Proposal for a Council Commission.
Additional contributions will be Regulation to activate
possible from member states and emergency support.
also individuals, foundations and
even crowd funding.
5
EU Civil Protection Mechanism.
13COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
European Union (EU)
What help is What does the help entail? Which companies What is the criteria (if How to apply When will the finance Relevant links
available? are eligible? any) for applying? be available?
Support to Temporary measure introduced in Addressed to member This fund will be based on a Member state Funds available from 1 European
mitigate response to the COVID-19 crisis by states to focus on short- system of voluntary submits a request to February 2020 Commission Press
Unemployment the European Commission. The term work schemes for guarantees from member the European (retroactive application). Release.
Risks in an temporary fund would provide: employees or similar states. Thus, a minimum Commission The co-legislators Proposal for a
o Up to €100 billion will provide measures for the self- amount of committed together with (Council of the EU and Regulation on the
Emergency employed. guarantees will be needed appropriate
(SURE) loans granted on favourable European Parliament) establishment of a
terms from the EU to member (25%). evidence of the have to approve the European instrument
states Funds to be given to member need to access proposal before it can for temporary support
states to complement national funds. become official EU law. to mitigate
o Up to €25 billion of guarantees
voluntarily committed by measures to mitigate the The member state unemployment risks
member states to the EU budget direct economic and negative can, upon receipt of in an emergency
to leverage the financial power social effects due to the the funds, allocate (SURE).
of SURE. COVID-19 crisis. them accordingly.
Pandemic €750 billion stimulus package Available to the The PEPP enables the No application Purchases will be The information on
Emergency announced by the European Central Eurosystem's Central Eurosystem central banks to required by conducted until the end of the ECB's response
Purchase Bank (ECB) to buy government and Banks. purchase6: companies - 2020. is available here.
Programme corporate bonds to assist sovereign This will include all the o Eligible marketable debt purchases will be The European
debt markets. asset categories eligible securities carried out flexibly Central Bank's
(PEPP) to achieve monetary
under the existing asset o Eligible corporate bonds Decision is available
purchase programme policy objectives. here.
and other marketable debt
(APP) currently instruments
supporting Central
Banks. o Eligible covered bonds
o Eligible asset-backed
securities
Key Contacts
Wolfgang A. Maschek Christina Economides
Partner, Brussels Public Policy Advisor, Brussels
T +322 627 11 04 T +322 627 11 05
E wolfgang.maschek@squirepb.com E christina.economides@squirepb.com
6
The eligibility of the marketable assets listed are financial instruments that are admitted to trading on a market and that fulfil the eligibility criteria laid down in Part Four of the ECB's Guidelines (ECB/2014/60) on the
implementation of the Eurosystem monetary policy framework.
14COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
Financing Facility Support
What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for applying? How to apply When will the
available? finance be
available?
Exceptional The state has provided a It is available to all legal entities and The loan must: The guarantees will be issued The process can
state guarantee guarantee of up to €300 billion physical persons having an Provide a minimum grace period of 12 months and managed by Bpifrance start now.
of €300 billion (in principle, interest and economic activity and registered and an option for the borrower at the end of this Financement SA on behalf of
for loans to ancillary costs) for all new with the SIRENE. It is not available, period to amortise it for an additional period of up the government.
loans granted by credit however, to: to five years
businesses establishments and financing ‒ Businesses subject to Be unsecured (with some exceptions for In most cases, the guarantee is
entities between 16 March insolvency proceedings companies with a large number of employees or granted automatically, once
2020 and 31 December 2020. ‒ Credit establishments turnover) notified to Bpifrance.
More ‒ Financing entities Eligibility is subject to the aggregate loans granted
information ‒ Real estate civil companies to the borrower not having fallen below their level For large companies, a case-by-
can be found The guarantee can cover as of 16 March 2020 case review will be performed
here. several loans, in which case it by the Minister of Economy.
will enter into force in There is a limit to the amount of the There is a fee for the guarantee, which varies
chronological order. loans that can be granted, according to the length of the loan and the size of
depending on the date of the the business:
creation of the borrower (before or For businesses employing more than 250 persons
after 1 January 2019). or with a turnover of more than €50 million or a
balance sheet greater than €43 million:
‒ 0.50% for the first year
‒ 1% for the two following years
For loans granted to companies with ‒ 2% for the next three following years
more than 4,999 employees or with
For other businesses:
a turnover exceeding €1.5 billion
‒ 0.25% for the first year
(both criteria as at 16 March 2020),
‒ 0.50% for the two following years
the decision will be taken on a case-
‒ 1% for the next three following years
by-case basis.
A period of two months must lapse before a call
under the guarantee.
The guarantee will only cover part of the loan:
‒ 90% for businesses that employ less than
5,000 persons and have a turnover of less
than €1.5 billion
‒ 80% for businesses with a turnover
greater than €1.5 billion but less than €5
billion
‒ 70% for others
15COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for applying? How to apply When will the
available? finance be
available?
Public Government support of credit Small-size entities and medium-size • Only applies until 31 December 2020.
reinsurance of insurance to protect inter- entities
insurance company credit.
cover
The Caisse central de
réassurance will implement a
reinsurance mechanism up to
an amount of €10 billion.
Public To enable French exporting Exports to EU countries and high- Maximum amount of outstanding loans to €2
reinsurance companies to continue to use income OECD countries are now billion.
mechanism for credit insurance to secure eligible.
short-term international operations, the
public reinsurance mechanism
outstanding Cap Francexport will be
export credit extended.
insurance
Aid to very Assistance of up to €3,500 to VSEs, freelancers, micro-traders • Operated since before 1 February 2020 From 1 April, all relevant • The process for
small VSEs: and liberal professions • Have not initiated insolvency proceedings before 1 companies will be able to make the financial aid
enterprises ‒ Compensation of the March 2020 a simple filing on the tax site to application can
(VSEs) and loss of revenue up to • Make less than €1 million in turnover receive aid of up to €1,500. This start now.
€1,500 • Have a taxable annual profit of less than €60,000 amount will be tax exempt. • Payment date not
independent • Have less than 10 employees
‒ An additional €2,000 for specified.
workers the most difficult • Not be part of a group of companies that would From 15 April, companies
situations, and additional globally exceed the above thresholds experiencing the highest level of
More support may be granted difficulties will be able to obtain,
information to avoid bankruptcy on a For the first level of aid: on a case-by-case basis,
can be found case-by-case basis • Have been shut down by an administrative order additional aid of €2,000.
here In addition, they may request • Experienced a loss of turnover of more than 50%
and here. postponement of rent or utility in March 2020 compared to March 2019 (or, for For water, gas and electricity
payments. companies created after 1 March 2019, by ratio to bills, companies can send an
the average monthly turnover over the period amicable deferral request
between the date of the creation of the company without delay by email or
and on 1 March 2020) telephone to their supplier.
16COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for applying? How to apply When will the
available? finance be
available?
Aid to very For the additional aid: For the rent of commercial
small ‒ Employ at least one employee premises, on 20 March, the
enterprises ‒ Be unable to settle one’s debts in 30 days main federations of landlords
(VSEs) and ‒ Be denied a (reasonable) cash loan by called their landlord members to
their bank for which it applied after 1 suspend rent for the April
independent deadline and for the subsequent
March 2020
workers periods of cessation of activity
imposed by the decree.
More
information For businesses that are under
can be found an order to shut down, the rent
here and utility payment deferral
and here. measures apply automatically.
Special €80 million financed by the More information can be found here. More information can be found here. The process can
financing of PIA, managed by Bpifrance, start now.
start-ups under shall be allocated to finance
the aid for bridges between fundraising.
This funding, which can range
innovation from €100,000 to €5 million,
programme takes the form of CBs, with
(PIA), taking possible access to capital,
the form of and must be co-financed by
convertible private investors. In total, with
bonds (CBs), leverage, the French Tech
co-financed by Bridge will mobilise €160
private million in equity for French
start-ups.
partners
More
information
can be found
here.
17COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for applying? How to apply When will the
available? finance be
available?
Loans to SME Loans without guarantee, 12 months’ minimum activity On the Bpifrance website or by telephone. The process can
without real collateral on the All business sectors, except start now.
More assets of the company or its exclusions (SCIs, financial
information manager, are: intermediation companies, property
‒ Bounce-back loan, a development and rental companies,
can be found loan between €10,000 and agricultural companies with a
here. and €300,000, turnover of less than €750,000)
subsidised over a period
of seven years with two Bounce-back loan:
years of deferral SMEs
‒ Asset loan, up to €5 To finance cash requirements linked
million for SMEs and €30 to the economic situation
million for mid-sized Increase working capital
companies, granted over requirements
a period of three to five Intangible investments: costs of
years with deferred upgrading to standards
amortisation (environment, security, etc.),
recruitment and prospecting costs,
etc.
Tangible investments with low
pledge value: equipment
designed/produced by the company
for its own needs (IT equipment,
etc.)
Asset loan:
VSEs, SMEs and Midcaps
To finance cash shortage or an
exceptional increase in WCR, linked
to the economic situation
18COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
Other Financial Support
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Part-time work To prevent firing employees, it is possible for the All companies for the The application must contain: • The employer should inform The response takes 48 hours.
employer to reduce the working hours of following employees: • The reasons for changing to and consult with CSE, and
More employees. ‒ Full-time and short-term part-time work ask the DIRECCTE. By way
information contract • The measures taken to of exception, the opinion of
‒ Apprentices mitigate going to part-time the CSE can be transmitted
can be found
The employee is paid an indemnity of 84% of its ‒ Part-time workers work within two months of the
here. ‒ Temporary workers • The provisional duration and application.
net hourly salary or 100% of SMIC.
‒ VRP the number of hours
‒ Homeworkers and requested • Within 30 days of the decision
childminders • The number of employees to resort to partial work, the
The employee has their work temporarily affected employer must make the
suspended, but for benefits and rights, the request here.
employee is considered as if working.
The employer can benefit from an allocation
from the Agence de services et de paiement
covering 70% of the gross hourly pay (in
practice, 100% of the indemnity to the
employee).
The maximum period for partial work has been
extended to 12 months.
Daily • A parent with eligible children may declare that • Employees • One of the two parents of (i) a • Filing the documents online
allowance if they are kept at home, entitling them to daily child under the age of 16 on on the social security website.
children are to compensation from the first day off. For • Independent workers the day of the start of the For the employee, there has
employees, the relevant period does not accrue cessation or (ii) a child with to be an affidavit of the
be kept at
any paid holiday. disabilities under the age of employer
home 18 and taken into the care of (https://declare.ameli.fr/).
a specialised establishment.
More • For employees, the parent
information must not be able to work from
can be found home.
here.
19COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
Special • The accelerated payment of PIA already • Companies that already • PIA or the aid for innovation
assistance to allocated, but not yet paid, for a total estimated benefit from the PIA or the aid plan already.
start-ups amount of €250 million, by paying in advance for innovation plan
the tranches not yet paid for the project that
have already been approved.
More
information • For companies receiving aid in the form of
can be found repayable advances or advances with royalties,
here. the next due dates for reimbursements are
postponed for up to six months.
Postponement • Up to three months’ postponement of the • Companies or independent • For companies, either by • Already in place.
of social payment of whole or part of social security workers (but not micro- lowering the bank transfer or
security charges due on 15 March or 5 April. entrepreneurs) via the DSN.
payment due in
• Independent workers, craftsmen, traders and • Automatic for independent
March or April liberal professions can ask for (i) additional workers for the payment due
postponement and/or (ii) a change of the in March or April and upon
More amounts to be paid as a result of the reduction request online with their
information in revenue and/or (iii) for social assistance and social security organisation.
can be found exceptional financial aid for the payment of their
here. social security charges.
Postponement • Possibility to request the postponement without • All companies and • Not having paid dividends. • Companies that have already
of direct tax penalty of the settlement of their next direct tax independent workers paid their March instalment
payments instalments (corporate tax instalment, payroll and no longer have the
tax, etc.). possibility of opposing the
SEPA direct debit with their
online bank, but they can
apply for a refund from their
SIE.
• Independent workers may
change the amount of tax
payment online on the tax
authority’s website or
postpone payments up to
three months.
20COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be
available? eligible? for applying? available?
• It is possible to suspend
monthly contracts for the
payment of business tax
(CFE) or property tax (taxe
foncière), either online or by
contacting the Service
Deduction Centre (Centre
Prélèvement Service). The
balance will be levied on the
yearly deadline, without
penalty.
Accelerated • Companies that benefit from one or more tax • The company has to file its
refund of tax credits refundable in 2020 can request the tax credit and, in the absence
credit or VAT reimbursement of the balance of the available of a filing of income statement
receivable, after deduction, where applicable, result, indicate the remainder
credit
from their corporate income tax due for the FY of corporate income tax due.
2019, without having to wait for the filing of their
tax return.
• Request for reimbursement of VAT credit will be
handled more quickly by the tax authorities.
Additional • Additional delays can be granted for the • All companies and • Filing of relevant documents
postponement payment of taxes and the employer’s share of independent workers with the local Commission
for payment of social security contributions. des chefs de services
financiers (CCSF).
social security
• This does not include the employee’s part of
charges and social security contribution, nor taxes
taxes withholding income tax.
More
information
can be found
here.
21COVID-19: Summary of Government Financial Support
to Businesses as at 03 April 2020
France
Key Contacts
Antoine Adeline
Partner, Paris
T +33 1 5383 7400
E antoine.adeline@squirepb.com
Véronique Collin
Partner, Paris
T +33 1 5383 7406
E veronique.collin@squirepb.com
Stephanie Faber
Of Counsel, Paris
T +33 1 5383 7400
E stephanie.faber@squirepb.com
Jean-François Rage
Partner, Paris
T +33 1 5383 7581
E jean-francois.rage@squirepb.com
22COVID-19: Summary of Government Financial Support
to Businesses as at 09 April 2020
Germany
Financing Facility Support
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the
available? eligible? applying? finance be
available?
Corona Subsidy from the federal government. Available in all economic Applicants must have a domestic permanent Application should be done Immediately, until
emergency aid sectors to: establishment or have a domestic electronically. 31 May 2020
In total, up to €50 billion with maximum management and be registered with the
for micro- utilisation for 3 million self-employed and ‒ Micro-enterprises Payment will be done by the
enterprises German tax office.
micro-enterprises over three + two German states.
and sole months. ‒ Self-employed persons The business must have economic
proprietors ‒ Independent professionals difficulties because of COVID-19 and must
Unused budgetary resources will flow not have been in economic difficulty before
back into the budget. March 2020.
Detailed Subsidies will be: Financial difficulties occurring after 11
information and ‒ Up to €9,000 paid as a single payment March 2020.
an in-depth FAQ for three months for up to five If a landlord reduces rent by at least 20%, a
page be employees (full-time equivalents) business can access the grant for a further
accessed here. two months.
‒ Up to €15,000 paid as a single payment
for three months for up to 10 employees To qualify the business should not have any
(full-time equivalents) other income, collateral or loans available to
This subsidy takes effect on profits when it.
income or corporation tax is assessed in The threat to existence or liquidity
2021. bottleneck caused by COVID-19 must be
insured.
Economic The economic stabilisation fund provides: Companies that are Companies must be seated in Germany and By application to the Federal Immediately
Stabilisation considered: be registered with the German tax office. Ministry of Finance, which will
‒ €400 billion in government guarantees decide, in agreement with the
Fund for liabilities ‒ Important for Germany as a Companies must have: Federal Ministry of Economics
business location or for the and Technology.
‒ €100 billion for direct state participation labour market ‒ Balance sheet total of more than €43
Detailed ‒ €100 billion for refinancing by KfW million
‒ Systemically important
information and programme smaller companies ‒ Revenues of more than €50 million
an in-depth FAQ
Available until the end of 2021 (unless ‒ Companies in the critical ‒ More than 249 employees on an annual
page be extended).
accessed here. infrastructure sector average
The company:
‒ Must not have been in financial difficulty
on 31 December 2019
23COVID-19: Summary of Government Financial Support
to Businesses as at 09 April 2020
Germany
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the
available? eligible? applying? finance be
available?
‒ Must have no other means of financing
‒ Must prove that post-COVID-19 the
company will be a clear independent
going concern
‒ Must guarantee a sound and prudent
business policy, in particular by
contributing to the stabilisation of
production chains and safeguarding jobs
Smaller enterprises outside of this criteria
can apply for the fund provided that they are
active in one of the sectors listed in Section
55 of the Foreign Trade and Payments
Regulation or are of comparable importance
for security or the economy.
KFW Special Loans for business that have been SME, midsize and large Companies that have been on the market All companies should contact Immediately
Programme established for more than five years for: companies that have been for more than five years and fulfil the their banks or financing partners
active on the market for at criteria. who pass on KfW loans.
‒ Investments least five years.
‒ Operating costs Information on the programmes
Detailed can be found on the KfW
information can ‒ Warehouse website.
be found here.
‒ Acquisition of assets from other The KfW hotline for commercial
companies loans is 0800 539 9001.
Investment and working capital loans for ERP start-up loan – Companies and self-employed established All companies should contact Immediately
young companies that have been on the Universal for founders of within the last five years. their banks or financing partners
market for less than five years new businesses, company who pass on KfW loans.
successors, free lancers The company must have been active on the
Investments and working capital and companies of all sizes market for at least three years or can Information on the programmes
that are experiencing present two annual financial statements. can be found on the KfW
temporary financing website.
difficulties due to COVID-
19. The KfW hotline for commercial
loans is 0800 539 9001.
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