COVID-19 Summary of Government Financial Support Europe and Middle East - 14 May 2020 Version 5

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COVID-19 Summary of Government Financial Support Europe and Middle East - 14 May 2020 Version 5
COVID-19 Summary of Government Financial Support
 Europe and Middle East
 14 May 2020
 Version 5

squirepattonboggs.com
COVID-19 Summary of Government Financial Support Europe and Middle East - 14 May 2020 Version 5
CONTENTS
EUROPE                            1
        BELGIUM                   1
        CZECH REPUBLIC            6
        EUROPEAN UNION (EU)       10
        FRANCE                    21
        GERMANY                   32
        ITALY                     40
        POLAND                    47
        SLOVAKIA                  53
        SPAIN                     58
        UNITED KINGDOM            61
MIDDLE EAST                       70
        KINGDOM OF SAUDI ARADIA   70
        QATAR                     74
        UNITED ARAB EMIRATES      77

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COVID-19 Summary of Government Financial Support Europe and Middle East - 14 May 2020 Version 5
COVID-19: Summary of Government Financial Support
                                                                                                                       to Businesses as at 30 April 2020
                                                                                                                                               Belgium
Financing Facility Support

What help is         What does the help entail?                    Which companies are eligible?                 What is the criteria (if any) for               How to apply                 When will the finance
available?                                                                                                       applying?                                                                    be available?
Federal               The federal state will provide a             All "viable" non-financial companies         All new loans with a maximum term of           The scheme applies          The measure is
Guarantee              guarantee of €50 billion for certain          registered with the Belgian company           one year (unless extended) entered into         automatically.               currently in force.
Scheme                 loans issued by financial institutions in     register.                                     between 1 April 2020 and 30 September
                       Belgium                                      SMEs.                                         2020 (unless extended) will be covered
More information                                                                                                   by the federal guarantee.
                      Any losses that are suffered will be         Not-for-profit organizations.
can be found here
                       apportioned between the federal state                                                      Excluded from the benefit of the
(in French), here      and the financial sector:                    Self-employed.                                guarantee:
(in Dutch) and                                                      Excluded "non-viable" companies
                         ‒   First loss of 3% to be supported                                                      ‒    Re-financings
here (in English).                                                   which were:
                             by the financial sector                                                               ‒    Drawdowns under agreements
                         ‒   Losses between 3% and 5%                ‒    In breach of payment obligations              entered into before 1 April 2020
                             shared equally between the                   under existing credit agreements
                                                                                                                   ‒    Financings that cannot
                             financial sector and the federal             or in respect of social security or
                                                                                                                        contractually be used for Belgian
                             state                                        tax obligations on 1 February
                                                                                                                        activities of the borrower.
                                                                          2020, or more than 30 days late
                         ‒   For losses in excess of 5% the                                                       Agreements that specifically exclude the
                                                                          in respect of such obligations as
                             federal state will bear 80% of the                                                    benefit of the guarantee.
                                                                          of 29 February 2020
                             loss.
                                                                     ‒    Subject to a credit restructuring
                                                                          procedure as of 31 January 2020
                                                                     ‒    Given other information
                                                                          available, must be deemed a
                                                                          company in financial difficulty.
Repayment             For existing loan agreements (not            All "viable" non-financial companies.        The applicant will need to prove that it is    Applications to be          Available now.
Moratorium             leasing or factoring agreements),            SMEs.                                         established in Belgium, is experiencing         lodged with the relevant
Scheme                 companies, self-employed workers                                                            financial difficulties resulting from the       credit institution.
                       and individuals can request a                Self-employed .                               COVID-19 virus, that it is up–to-date on
More information       moratorium until 31 October 2020 on          Homeowners experiencing financial             its loan payments, tax and social
can be found here      their loan repayment (principal               difficulties in respect of their mortgage     security payments, that it has complied
(in Dutch) and         payments only not interest payments           payments.                                     with all its contractual obligations vis-à-
here (in French).      which remain due) obligations (without                                                      vis its bank lenders over the 12 month
                       any penalties becoming due).                                                                period prior to 31 January 2020 and it is
                                                                                                                   not subject to any debt restructuring
                                                                                                                   measures.
                                                                                                                  The homeowner will need to
                                                                                                                   demonstrate a loss of revenue in
                                                                                                                   connection with COVID-19, that it is up-
                                                                                                                   to-date on its mortgage payments (up to
                                                                                                                   1 February 2020) and its financial
                                                                                                                   means are lower than €25,000.

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COVID-19: Summary of Government Financial Support
                                                                                                                   to Businesses as at 30 April 2020
                                                                                                                                           Belgium
What help is         What does the help entail?                    Which companies are eligible?               What is the criteria (if any) for              How to apply              When will the finance
available?                                                                                                     applying?                                                                be available?
Insolvency            Moratorium introduced on insolvency          All businesses affected by COVID-19        Applies to all execution measures,                                      Available now.
Moratorium             proceedings and execution-related             (companies, not-for-profits and self-       except in relation to real estate or to
                       proceedings.                                  employed).                                  conservatory seizures on ships and
                      The moratorium entered into force on                                                      boats.
                       24 April 2020 until 17 May 2020.                                                         Provided that businesses were not in a
                      Third parties cannot start bankruptcy                                                     state of cessation of payments on 18
                       proceedings and no judicial winding                                                       March 2020.
                       up proceedings can be started against
                       an affected business.
                      The obligations for directors to file for
                       bankruptcy are suspended during the
                       moratorium.
                      Parties cannot terminate agreements,
                       except labour agreements, as a result
                       of the breach of payment obligations.
                      Can still challenge the applicability of
                       the moratorium by petitioning the
                       president of the business court, if
                       there are reasons that would justify
                       the moratorium being lifted in whole or
                       part.

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
available?                                                              eligible?                            for applying?                                                              be available?
Federal Tax           A payment plan, and exoneration from              Companies and self-                 Companies or self-employed           Application to be made to the       Available now.
Relief Scheme          penalties and late payment interest, can be        employed.                            who are affected by the               Federal Tax Authority by 30 June
                       negotiated with the federal tax authorities                                             COVID-19 crisis (must provide         2020 at the latest.
More information       for:                                                                                    evidence).
can be found here
                         ‒   Wage withholding tax                                                             Fraud related tax debts are
(in French) and
                         ‒   VAT                                                                               not eligible.
here (in Dutch).
                         ‒   Corporate Income Tax
                         ‒   Income Tax.

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COVID-19: Summary of Government Financial Support
                                                                                                           to Businesses as at 30 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
available?                                                           eligible?               for applying?                                                            be available?
Other Federal        Extension for the declaration of Corporate      Companies.             Automatic.                     Automatic.                              Available now.
Tax Measures          Income Tax, Non-residents Tax and Not-for-      Not-for-profit.
                      profit income tax until 30 April 2020 (for
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, Non-
here (in Dutch).      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).

Social Security      The payment of social security contributions    Companies.             Companies that have been       Automatic for companies in certain      Available now.
Measures              can be postponed until 15 December 2020.                                 shut down due to COVID-19       specific sectors and those that were
                                                                                               or who have decided to shut     required to close (such as
More information                                                                               down.                           restaurants, bars, leisure
can be found here                                                                                                              businesses, cultural and sport
(in French) and                                                                                                                related 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 regime,        Companies.             None.                          Application to be made to the           Available now.
Unemployment          an employer can suspend wage payments                                                                    Belgian National Employment Office
for Force             and workers will receive unemployment                                                                    (ONEM).
Majeure               benefits corresponding to a percentage of
                      their wages from the federal authorities.
More information
can be found here
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COVID-19: Summary of Government Financial Support
                                                                                                                to Businesses as at 30 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
available?                                                            eligible?                          for applying?                                                        be available?
(in French) and      This applies to blue collar and white collar
here (in Dutch).      workers.
                     The application procedures have been
                      simplified given the COVID-19 crisis.
Other measures       The Flemish Region has announced, among          Companies, self-employed          Various depending on the       Various formalities depending on    Most measures are now
in the Flemish        other measures:                                   and individuals in the Flemish     measure.                        the relevant measure.                available.
Region Flanders         ‒   Indemnity payments of €4,000 for            region.
More information            companies that have had to close as a
                            result of COVID-19; more information
can be found here
                            available here (in Dutch)
(in Dutch).
                        ‒   €160 payment per day if a self-
                            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
                            affected by COVID-19; more
                            information available here (in Dutch)
                        ‒   Deferral of tax payments in respect of
                            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 on    Most measures are now
in the Walloon        among other measures:                             and individuals in the Walloon     measure.                        the relevant measure.                available.
Region                  ‒   Indemnity payments for SMEs and self-       region.
More information            employed that have had to shut down
                            as a result of COVID-19 (up to €5,000);
can be found here           more information available here (in
(in French).                French)
                        ‒   Deferral of tax payments in respect of
                            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. .

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COVID-19: Summary of Government Financial Support
                                                                                                               to Businesses as at 30 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
available?                                                           eligible?                           for applying?                                                        be available?
Other measures        The Brussels Region has announced,             Companies, self-employed           Various depending on the       Various formalities depending on    Most measures are now
in the Brussels        among other measures:                           and individuals in the Brussels     measure.                        the relevant measure.                available.
Region                   ‒   Indemnity payments for SMEs in            region.
More information             certain sectors only that have had to
                             close as a result of COVID-19 (up to
can be found here
                             €4,000)
(in French) and
here (in English).       ‒   Deferral (or even waiver) of tax
                             payments in respect regional taxes
                         ‒   A guarantee scheme to help COVID-19
                             affected companies.

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

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COVID-19: Summary of Government Financial Support
                                                                                                                  to Businesses as at 14 May 2020
                                                                                                                                  Czech Republic
Financing Facility Support
What help is              What does the help entail?                        Which companies are eligible?             What is the criteria (if any)      How to apply                   When will the
available?                                                                                                            for applying?                                                     finance be
                                                                                                                                                                                        available?
Programme COVID I          Loans provided by the Czech-Moravian             Small and medium enterprises             Businesses must prove that        Applications may be           The available funds
                            Guarantee and Development Bank                    (SMEs).                                   their operations were limited,     submitted via electronic       have already been
Further information can
                            (ČMZRB) without interest and without fees.       SMEs are allowed to use these             paused or otherwise affected       form on the website of         distributed and the
be found here.                                                                                                          by the extraordinary measures      ČMZRB.                         scheme is no longer
                           Loans are provided in amounts from CZK            finances to purchase equipment or
                            500,000 to CZK 15 million with two years          intangible assets, to purchase or         of the government to fight the                                    open to new
                            maturity and possible deferral of repayment       finance inventory and to finance          spread of COVID-19.                                               applicants.
                            up to 12 months.                                  business operations.
Programme COVID II         Commercial loans provided by one of the          SMEs are allowed to use the funds        Businesses must prove that        Application is submitted      The first round of
                            commercial banks in the programme, with a         to pay wages, utilities, outstanding      their operations were limited,     via electronic form            applications has been
Further information can
                            guarantee provided by the ČMZRB.                  or future invoices relating to            paused or otherwise affected       available here.                completed and the
be found here.                                                                materials or supplier invoices, or to     by the extraordinary measures                                     scheme is now
                           Loans may be provided up to CZK 15
                            million, with up to 80% of the principal          finance its receivables or inventory.     of the government to fight the                                    paused. Another
                            amount guaranteed by the ČMZRB.                                                             spread of coronavirus.                                            round of distributions
                                                                                                                                                                                          has not yet been
                           Guarantee is provided for a maximum of                                                                                                                        announced.
                            three years.
Programme COVID            Guarantee provided by ČMZRB up to 80%            SMEs with place of business in           Businesses must prove that         Application is submitted      The funds available in
Praha                       of the loan principal.                            Prague.                                   their operations were limited,     via electronic form            the programme have
                                                                                                                        paused or otherwise affected       available here. However,       been depleted.
Further information can    The loan must be provided by one of              The loan must be provided by one
                            commercial banks, which is involved in the        of the commercial banks, which is         by the extraordinary measures      applications are no longer
be found here.                                                                                                          of the government to fight the     accepted.
                            COVID Praha project.                              involved in the COVID Praha
                                                                              project.                                  spread of COVID-19.               The programme launched
                           The maximum loan is CZK 15 million.
                                                                                                                                                           as of 20 April 2020.
                           Financial contribution for payment of the        The loan may cover operational
                            interest up to CZK 1 million.                     financing.

Programme COVID III        Guarantee provided by ČMZRB in the total         For all businesses up to 500             Not available at the moment.       Not available at the          The legislation has
                            amount of CZK150 billion.                         employees.                                                                   moment.                        been adopted. Further
Further information can
                                                                                                                                                                                          information is not yet
be found here.                                                                                                                                                                            available.
Programme Covid            Guarantee up to CZK330 million (including        Businesses with at least 250             The applicant must prove it       Application may be            The funds will be
Plus                        existing products) per individual provided by     employees.                                was not in pre-existing crisis     submitted here.                available upon
                            the Export Guarantee and Insurance               Businesses must not evidence signs        before 12 March 2020.                                             approval of the
Further information can     Corporation (EGAP).                                                                                                                                           application.
be found here.                                                                of bankruptcy before                     The funds may be used to
                                                                              commencement of the restrictive           sustain liquidity and finance
                                                                              measures on 12 March 2020.                operations.
                                                                             Businesses which have majority of
                                                                              their operations in transportation,
                                                                              hospitality and gaming are not
                                                                              eligible.

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COVID-19: Summary of Government Financial Support
                                                                                                                 to Businesses as at 14 May 2020
                                                                                                                                 Czech Republic
What help is              What does the help entail?                       Which companies are eligible?           What is the criteria (if any)       How to apply                  When will the
available?                                                                                                         for applying?                                                     finance be
                                                                                                                                                                                     available?
Subsidies programme        Subsidies for businesses to adopt new           SMEs.                                  The project has to focus on        The programme opened         The finances would
"Technologie COVID"         technologies (e.g. online retailing) to                                                  production of medical supplies      for applications as of        be available following
                            continue the business despite restrictive                                                or be related to the fight          14 April 2020.                the application being
Further information can     measures.                                                                                against COVID-19 in another                                       approved.
be found here.                                                                                                       way.
                           Individual projects may receive subsidy from
                            CZK250,000 to CZK200 million.                                                           The funds can be used only to
                                                                                                                     alter technology or prepare for
                                                                                                                     production of medical
                                                                                                                     supplies, or to implement
                                                                                                                     software to produce medical
                                                                                                                     supplies or adopt other
                                                                                                                     measures related to fight
                                                                                                                     against COVID-19.
Subsidies Programme        Subsidies for businesses offering new           All businesses, including start-ups    The project must be                The programme is open        The finances would
"Czech Rise Up"             solutions for fighting the spread of             and scientific institutions.            implemented in the Czech            for applications.             be available following
                            coronavirus (such as new types of                                                        Republic and must offer quick                                     the application being
Further information can     respirators or ventilators).                                                             solutions for the fight against                                   approved.
be found here and                                                                                                    coronavirus.
                           Czech Ministry of Industry and Trade offers
here.
                            to cover all necessary costs of introduction
                            of these technologies to the market.
                           The budget for this programme is expected
                            to be around CZK 200 million, individual
                            subsidy may amount to maximum of CZK 5
                            million.
Programme "The             A public competition for best technological     SMEs.                                  The programme has extensive        The programme is open        The finances would
Country for the             solutions to fight the COVID-19 pandemic.                                                requirements applicable to the      for applications until 15     be available following
Future"                    Successful applicant will receive funds for                                              application for grant. The          May 2020.                     the application being
                            costs of invention and introduction of the                                               requirements are available         The assessment period         approved.
Further information can                                                                                              here.
                            technology into the practice.                                                                                                will last until 31 August
be found here.
                                                                                                                                                         2020.
Direct payments to         Direct payment of CZK 500 for each day of       Only self-employed individuals who     The individual must prove that     Applications should be       The finances would
self-employed               the bonus period to self-employed                were registered as self-employed        their financial situation           sent to the Tax Office.       be available following
individuals                 individuals.                                     before 12 March 2020 and do not         worsened due to COVID-19                                          the application being
                           Bonus period is from 12 March 2020 to            receive unemployment benefits.          measures. The Ministry of                                         approved. The
Further information can                                                                                              Finance indicated that an                                         programme is open.
                            30 April 2020. The period has been
be found here.                                                                                                       affidavit would be sufficient.
                            prolonged recently until 8 June 2020;
                            however, the prolongation is subject to
                            amendment of the existing legislation.

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COVID-19: Summary of Government Financial Support
                                                                                                                       to Businesses as at 14 May 2020
                                                                                                                                       Czech Republic
What help is                 What does the help entail?                         Which companies are eligible?            What is the criteria (if any)      How to apply                When will the
available?                                                                                                               for applying?                                                  finance be
                                                                                                                                                                                        available?
Direct payments to            Direct payment of CZK 500 for each day of         The support is limited to companies     The individual must prove that    Applications should be     The finances would
shareholders of                the bonus period from 12 March 2020 to 8           with a maximum of two                    their financial situation          sent to the Tax Office.     be available following
limited liability              June 2020 to shareholders of limited liability     shareholders.                            worsened due to COVID-19                                       the application being
companies                      companies (společník ve společnosti s             The shareholders must not be             measures. The Ministry of                                      approved.
                               ručením omezeným).                                 employees of their company and           Finance indicated that an
Further information                                                                                                        affidavit would be sufficient.
                              The payment is subject to amendment of             must declare they do not receive
can be found here.             the legislation, which is currently being          any other form of financial support
                               discussed in the Parliament.                       from COVID19-related programmes.

Other Financial Support
What help is available?        What does the help entail?                       Which companies are              What is the criteria (if any) for    How to apply                      When will the finance
                                                                                eligible?                        applying?                                                              be available?

Suspension of loan              Repayment of loans can be suspended for         All debtors, including          Repayment of loans concluded        A request must be sent to the    The legislation is in
repayments                       three to six months upon request of the          consumer loans or                and drawn before 26 March            creditor and must include         effect.
Further information can be       debtor.                                          mortgages.                       2020 can be suspended.               number of months (up to six
found here.                                                                                                                                             months maximum) for which the
                                                                                                                                                        debtor wishes to suspend the
                                                                                                                                                        repayment.
Ministry of Finance             Suspension of penalties for late                All tax payers.                 No application needed.
measures                         submission of tax returns (up until 30 June
Further information can be       2020).
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
                                 and 2020 (this measure is subject to
                                 amendment of the tax code).

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COVID-19: Summary of Government Financial Support
                                                                                                                 to Businesses as at 14 May 2020
                                                                                                                                 Czech Republic
What help is available?      What does the help entail?                    Which companies are            What is the criteria (if any) for       How to apply   When will the finance
                                                                           eligible?                      applying?                                              be available?

Suspension of social          Self-employed individuals are exempted       Self-employed individuals     No application is required.                           The legislation is in
security contributions         from the obligation to pay monthly social                                                                                           effect.
Further information can be     security contributions from March to
found here.                    August 2020.
Suspension of duty to file    Entities are allowed not to file for         All companies.                The indebtedness must have            N/A             The legislation is in
for insolvency                 insolvency in case of indebtedness                                           been caused by COVID-19                                effect.
Further information can be     caused by the COVID-19 measures.                                             measures and the entity's
found here.                   Creditor filings for insolvency will be                                      finances must have been sound
                               disregarded.                                                                 before 12 March 2020.
                                                                                                           The obligation to file for
                                                                                                            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

                    Radek Janeček                                                                   Veronika Vaněčková
                    Partner, Prague                                                                 Associate, Prague
                    T +420 221 662 275                                                              T +420 221 662 265
                    E radek.janecek@squirepb.com                                                    E veronika.vaneckova@squirepb.com

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COVID-19: Summary of Government Financial Support
                                                                                                                        to Businesses as at 14 May 2020
                                                                                                                                   European Union (EU)
Financing Facility Support
What help is        What does the help entail?                          Which companies              What is the criteria (if     How to apply                     When will the            Relevant links
available?                                                              are eligible?                any) for applying?                                            finance be
                                                                                                                                                                   available?
Coronavirus          Initiative proposed by the European                The measures are            The eligibility criteria    The European Commission         Funds available from    European
Response              Commission to provide a coordinated                 addressed to member          are set out through the      has set up a task force to       1 February 2020.         Commission
Investment            approach for member states to manage the            states. The respective       principle pieces of          coordinate the allocation of    The co-legislators       communication on
Initiative (CRII)     public health emergency.                            federal or regional          legislation (and their       funds between member             (Council of the EU       the broader
                     A total of €102 billion is envisaged:               authorities allocate the     proposed amendment           states. This will determine      and European             coordinated
                                                                          funds.                       by Regulation on CRII):      the funding each region will     Parliament) have         response for the
                         − €37 billion European Structural                                                                          be receiving to allocate to                               COVID-19 outbreak.
                           Investment Fund (ESIF)                        Particular focus should      - Regulation (EU)                                             approved the
                                                                          be given to:                   1301/2013 on the           businesses in need.              proposal.               European
                         − €65 billion divided into: (i) €7.9 billion                                    European Regional                                                                    Commission press
                           from the EU budget, (ii) €29 billion of        - Provide support to
                                                                            the healthcare sector        Development Fund                                                                     release on the CRII
                           structural funding across the EU and (iii)                                                                                                                         measures.
                           €28 billion of as of yet unallocated           - Provide liquidity to       - Regulation (EU)
                           structural funds.                                corporates (e.g.             1303/2013, for the                                                                  European
                                                                            SMEs)                        various EU                                                                           Commission Q&A on
                     On 2 April 2020, the European Commission                                           Structural Funds                                                                     the CRII+.
                      launched the CRII+, which are a new set of          − Support short time
                      measures to mobilise support against the              national working           - Regulation 508/2014                                                                 Regulation (EU)
                                                                            schemes.                     on European                                                                          2020/460 on the
                      COVID-19 outbreak. These are flexible
                                                                                                         Maritime and                                                                         Coronavirus
                      measures that would allow for:
                                                                                                         Fisheries Fund.                                                                      Response
                         - Transfer possibilities across the three
                           cohesion policy funds (the European                                        The specific criteria on                                                               Investment Initiative
                                                                                                       the allocation of funds                                                                published in the
                           Regional Development Fund, European                                                                                                                                Official Journal of
                           Social Fund and Cohesion Fund)                                              to regions are
                                                                                                       determined in                                                                          the EU on 31 March
                         - Transfers between the different                                             partnership                                                                            2020 and entered
                           categories of regions                                                       agreements and                                                                         into force on 1 April
                         - Flexibility related to the thematic                                         programs negotiated                                                                    2020; it is directly
                           concentration of funds                                                      between the European                                                                   applicable to
                                                                                                       Commission and the                                                                     member states.
                         − Simplification of procedural steps linked
                           to programme implementation, use of                                         respective member
                           financial instruments and audit.                                            states.
                                                                                                      The federal or regional
                                                                                                       authorities direct the
                                                                                                       funds to their regions
                                                                                                       according to the needs
                                                                                                       and based on the
                                                                                                       criteria determined by
                                                                                                       each individual
                                                                                                       partnership agreement.

 squirepattonboggs.com                                                                                                                                                                                                10
COVID-19: Summary of Government Financial Support
                                                                                                                            to Businesses as at 14 May 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               Relevant links
    available?                                                               are eligible?                any) for applying?                                                finance be
                                                                                                                                                                            available?
    Financial Aid        Financial assistance under the European             Available to countries      A country is eligible if     Application criteria for           Funds available from       European
    under the             Union Solidarity Fund (major public health           negotiating their            major natural disasters       countries to apply for the          1 February 2020,            Commission press
    European              emergency) to assist countries negotiating           accession to the EU to       are striking its regions.     European Union Solidarity           (funds can be               release.
    Union                 their accession to the EU.                           assist with public          In particular the             Fund can be found on the            applied                    Regulation (EU)
                         Immediate financial assistance up to €38             health systems and           Regulation (EU)               website.                            retroactively).             2020/461 on the
    Solidarity Fund                                                            socio-economic
                          million announced for the Western Balkans'                                        2020/461 extends the         Applications need to be            The European                Financial Aid for
                          public health systems to tackle the health           recovery.                    legislation to "major         submitted to the European           Commission would            countries negotiating
                          emergency caused by COVID-19 and                    Respective countries to      public health                 Commission within 12                accept applications         accession to the EU
                          reallocation of €374 million to help the             decide on allocation of      emergency".2                  weeks of the date of the first      under the European          published in the
                          socio-economic recovery1 of the region.              funds.                      Respective country's          official action against the         Solidarity Fund until       Official Journal of
                         The public health need is divided between:                                        authority to decide how       emergency.                          24 June 2020.               the EU on 31 March
                                                                                                            to allocate funds.                                               Co-legislators              2020 and entered
                            - Albania and North Macedonia − up to €4                                                                                                                                      into force on 1 April
                              million each                                                                                                                                    (Council of the EU
                                                                                                                                                                              and European                2020; it is directly
                            - Bosnia and Herzegovina − €7 million                                                                                                             Parliament approved         applicable to
                            - Montenegro − up to €3 million                                                                                                                   the legislation.            member states.
                            - Kosovo − up to €5 million
                            - Serbia − up to €15 million.
    Liquidity            €1 billion available in an EU budget                Support intended for        The COVID-19 support         By completing a set of             For the InnovFin           European
    Measures for          guarantee to the European Investment Fund            small and medium             criteria for the InnovFin     documents available here            SME Guarantee               Commission
    SMEs                  (EIF) via the European Fund for Strategic            enterprises defined          SME Guarantee                 for the InnovFin SME                Facility funds              communication on
                          Investments (EFSI).                                  under EU                     Facility are available        Guarantee Facility, and             available from 6 April      the broader
                         The EIF will provide liquidity and guarantees        recommendation               here.                         another set of documents            2020 until 31 March         coordinated
                          to banks, mobilising €8 billion in working           2003//361 (further          The COVID-19 support          here for the COSME Loan             2021.                       response for the
                          capital financing.                                   information available        criteria for the COSME        Guarantee Facility.                For the COSME               COVID-19 outbreak.
                                                                               here) via financial          Loan Guarantee                                                    Loan Guarantee             European
                         In addition, the European Investment Bank            intermediaries.
                          (EIB) proposed to mobilise another €40                                            Facility are available                                            Facility funds are          Investment Bank
                          billion of financing divided into:                  The funding is eligible      here.                                                             available from 6 April      press release.
                                                                               under the InnovFin                                                                             2020 until 31
                            - €20 billion of financing Dedicated               SME Guarantee                                                                                  December 2020.
                              guarantee schemes to banks based on              Facility (research-
                              existing programmes for immediate                                                                                                              Interested parties
                                                                               based and innovative                                                                           should apply on the
                              deployment.                                      SMEs and small mid-                                                                            COVID-19 specific
                            - €10 billion of financing dedicated liquidity     caps in EU member                                                                              funds until 30 June
                              lines to banks to ensure additional              states and Horizon                                                                             2020.
                              working capital support for SMEs and             2020 Associated
                              mid-caps.                                        Countries3) and the

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."
3
  https://ec.europa.eu/research/participants/data/ref/h2020/grants_manual/hi/3cpart/h2020-hi-list-ac_en.pdf
    squirepattonboggs.com                                                                                                                                                                                                       11
COVID-19: Summary of Government Financial Support
                                                                                                                             to Businesses as at 14 May 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            Relevant links
    available?                                                              are eligible?                 any) for applying?                                           finance be
                                                                                                                                                                       available?
                            - €10 billion support dedicated asset-            COSME Loan
                              backed securities (ABS) purchasing              Guarantee Facility
                              programmes to allow banks to transfer           (SMEs in EU member
                              risk on portfolios of SME loans.                states and COSME
                                                                              Associated countries4),
                                                                              both subject to the EIF.
                                                                             Financial, credit
                                                                              institutions or loan
                                                                              (debt) funds are the
                                                                              main targets under the
                                                                              InnovFin SME
                                                                              Guarantee Facility.
                                                                             Guarantee schemes,
                                                                              guarantee institutions
                                                                              or other credit financial
                                                                              institutions are the
                                                                              financial intermediaries
                                                                              within the COSME
                                                                              Loan Guarantee
                                                                              Facility.

    Temporary             State aid (i.e. government support that gives     All companies                The relaxation of state    Application for state aid       Available from 1        Communication for a
    Framework for          a company a competitive advantage over             requesting state aid          aid rules is available      ordinarily follows the           February 2020 until      Temporary
    State Aid              other companies) is prohibited, unless there       from their                    for:                        broader state aid                the end of December      Framework for State
                           are justified reasons of general economic          governments.                  - Direct grants,            procedures under Article         2020.                    Aid measures.
                           development.                                      Amongst others:                  selective tax            107 of the Treaty of            .For the                European
                          The European Commission adopted a State                                             advantages and           Functioning of the EU.           recapitalisation         Commission press
                                                                              - Three French
                           Aid Temporary Framework which provides               support schemes                advance payments        There is, however, a much        measures introduced      release.
                           flexibility to the existing state aid rules. A                                      – Member states can      faster procedure of approval     in the amended
                                                                                related to                                                                                                       Communication for
                           template for the notification of measures            commercial loans               set up schemes to        under these flexible rules:      Temporary                an amendment of
                           that will compensate companies that have             and credit lines               grant up to €800,000     - Member state submits a         Framework; the           the Temporary
                           suffered damages.                                    (here)                         to a company in            state aid scheme based         measure is available     Framework for State
                                                                                                               order to address                                          until end June 2021.
                          On 8 May, the European Commission                  - Danish guarantee                                          on the template of                                      Aid measures.
                                                                                                               urgent liquidity           notification of measures
                           adopted an amendment to the Temporary                scheme for SMEs                                                                                                  European
                                                                                                               needs
                           Framework, which extends the scope of                (here)                                                  - European Commission                                     Commission press
                           state aid schemes flexibility to                                                 - State guarantees
                                                                              - German loan                                               will respond within days                                release on amended
                           recapitalisation aid to non-financial                                               for loans taken by         (thus far it has been 48
                                                                                programs within                                                                                                   Temporary
                           companies and subordinated debt aid to                                              companies from             hours upon receipt)
                                                                                promotional bank                                                                                                  Framework.
                           companies. Certain conditions have been                                             banks - Member
                           introduced, namely:                                  (here)                         states can provide

4
    https://ec.europa.eu/research/participants/data/ref/other_eu_prog/cosme/legal/3rd-country-participation_en.pdf
    squirepattonboggs.com                                                                                                                                                                                            12
COVID-19: Summary of Government Financial Support
                                                                                                                         to Businesses as at 14 May 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              Relevant links
    available?                                                            are eligible?                any) for applying?                                               finance be
                                                                                                                                                                        available?
                            - The necessity, appropriateness and size       - Italian support               guarantees to
                              of the intervention                             scheme for supply of          ensure banks keep
                            - The state's entry in the capital of             medical devices and           providing loans to
                              companies and remuneration                      PPE (here)                    customers who need
                                                                            - UK Coronavirus                them
                            - The exit of the state from the capital of
                              the companies concerned                         Business Interruption       - Subsidized public
                                                                              Loan Scheme                   loans to companies
                            - Governance conditions: beneficiaries are        (CBILS) to support            - Member states can
                              banned from dividends and share                 SMEs (here)5.                 grant loans with
                              buybacks                                                                      favourable interest
                            - Prohibition of cross-subsidisation and                                        rates to companies
                              acquisition ban.                                                              to cover immediate
                                                                                                            working capital and
                                                                                                            investment needs
                                                                                                          - 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

5
 Considering that the UK is currently under the transition period after its withdrawal from the EU, EU law remains applicable to the UK until 31 December 2020. Thus, state aid rules and notification procedures still
apply.
    squirepattonboggs.com                                                                                                                                                                                                 13
COVID-19: Summary of Government Financial Support
                                                                                                                         to Businesses as at 14 May 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             Relevant links
    available?                                                           are eligible?                any) for applying?                                               finance be
                                                                                                                                                                       available?
                                                                                                         - Short-term export
                                                                                                           credit insurance −
                                                                                                           Designation of
                                                                                                           countries as "not-
                                                                                                           marketable risks"6,
                                                                                                           enabling short-term
                                                                                                           export credit
                                                                                                           insurance to be
                                                                                                           provided by the
                                                                                                           state.
                                                                                                         - Recapitalisation and
                                                                                                           subordinated debt
                                                                                                           measures – based
                                                                                                           on conditions laid out
                                                                                                           on the first column.

    Coronavirus         The European Commission announced on             Addressed to                No specific criteria.        N/A                               Co-legislators would     European
    Banking              28 April COVID-19 banking package aiming          European banks and           Flexibility measures                                             need to approve the       Commission Press
    Package              to provide flexibility in bank lending to         credit institutions          are applicable through                                           amended legislative       Release
                         businesses and households throughout the                                       the crisis.                                                      proposals to become
                         EU.                                                                                                                                             effective.
                                                                                                                                                                        Applicability date to
                        The package consists of a proposal for a                                                                                                        be determined when
                         regulation, which provides adjustments to                                                                                                       proposed regulation
                         maximise the capacity of credit institutions                                                                                                    is approved.
                         to lend and to absorb losses linked to the
                         COVID-19 and an interpretative
                         Communication explaining the proposed to
                         the EU's accounting and prudential
                         frameworks.
    RescEU              Increase in the total budget of rescEU7          Reorganisation of EU        The Commission will          The stockpile will be hosted      Available from 20        European
    stockpile            stockpile of medical equipment (ventilators,      spending for the year in     finance 90% of the            by one or several member           March 2020.               Commission press
                         protective masks and essential medical            line with the latest         stockpile.                    states. The hosting state will                               release
                         gear) to €80 million.                             priorities to secure                                       be responsible for procuring
                                                                           funding for these                                          the equipment.
                                                                           operations.

6
  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."
7
  EU Civil Protection Mechanism.
   squirepattonboggs.com                                                                                                                                                                                                14
COVID-19: Summary of Government Financial Support
                                                                                                                    to Businesses as at 14 May 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             Relevant links
available?                                                            are eligible?              any) for applying?                                           finance be
                                                                                                                                                              available?
                    The proposal includes further COVID-19                                       The Emergency              Member states that host
                     related financial support:                                                    Response Coordination       rescEU stockpiles can apply
                     − €350 million of migration management                                        Centre will manage the      for a direct grant from the
                        assistance to Greece                                                       distribution of the         European Commission. 90%
                                                                                                   equipment to ensure it      of the grant covers costs of
                     − €3.6 million for the European Centre for                                    goes where it is            the stockpile and the
                        Disease Prevention and Control                                             needed most based on        remaining 10% will be
                     − €100 million to help Albania recover from                                   a fast-track public         covered by the respective
                        the devastating earthquake on 26                                           procurement process.        member state.
                        November 2019
                     − €3.3 million additional funding for the
                        European Public Prosecutors' Office
                        (EPPO) to boost its 2020 budget.
Emergency           The European Commission decided to                Addressed to member       European Commission        Member states to request        From 1 February          Amended Budget
Support              directly support the healthcare systems of         states' healthcare         to manage the funding       funding from the European        2020 applicable until     here.
Instrument for       EU member states. The Commission will              systems.                   process and set out the     Commission. Further              31 January 2022.         Council Regulation
the healthcare       thus mobilise:                                                                criteria for funding        application criteria to be       (retroactive              (EU) 2020/521 to
                     - €3 billion from the EU budget, of which                                     based on partnership        determined by partnership        application).             activate emergency
sector                                                                                             agreements with             agreements between a
                        €2.7 billion will be channelled through                                                                                                Council of the EU         support published in
                        the Emergency Support Instrument                                           respective member           member state and the             approved the              the Official Journal
                                                                                                   states, as laid out in      European Commission.             proposal for a            of the EU.
                     - €300 million though the rescEU medical                                      the humanitarian aid
                        equipment capacity.                                                                                                                     Regulation.              European
                                                                                                   framework (Council
                    These funds are available under the EU's                                      Regulation (EC)                                                                        Commission press
                     General Budget.                                                               1257/96).                                                                              release.
                    Additional contributions will be possible from                               Indicative (but non-
                     member states and also individuals,                                           exhaustive) actions in
                     foundations and even crowd funding.                                           scope can be found on
                                                                                                   ANNEX 1 of the
                                                                                                   Proposal for a Council
                                                                                                   Regulation to activate
                                                                                                   emergency support.
Support to          Temporary measure introduced in response          Addressed to member       This fund will be based    Member state submits a          Funds available from     European
mitigate             to the COVID-19 crisis by the European             states to focus on         on a system of              request to the European          1 February 2020           Commission Press
Unemployment         Commission. The temporary fund would               short-term work            voluntary guarantees        Commission together with         (retroactive              Release.
Risks in an          provide:                                           schemes for                from member states.         appropriate evidence of the      application).            Proposal for a
                     - Up to €100 billion will provide loans            employees or similar       Thus, a minimum             need to access funds.           The Finance               Regulation on the
Emergency                                                               measures for the self-     amount of committed
(SURE)                  granted on favourable terms from the EU                                                               The member state can,            Ministers approved        establishment of a
                        to member states                                employed.                  guarantees will be          upon receipt of the funds,       this proposal on 9        European instrument
                                                                                                   needed (25%).               allocate them accordingly.       April, within a           for temporary
                     - Up to €25 billion of guarantees
                        voluntarily committed by member states                                                                                                  broader financial         support to mitigate
                                                                                                                                                                emergency fund.           unemployment risks

squirepattonboggs.com                                                                                                                                                                                        15
COVID-19: Summary of Government Financial Support
                                                                                                                          to Businesses as at 14 May 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              Relevant links
    available?                                                           are eligible?                 any) for applying?                           finance be
                                                                                                                                                    available?
                            to the EU budget to leverage the financial                                  Funds to be given to                         The proposal for a         in an emergency
                            power of SURE.                                                               member states to                             regulation was also        (SURE).
                                                                                                         complement national                          approved on 23 April
                                                                                                         measures to mitigate                         by the EU27 heads
                                                                                                         the direct economic                          of state.
                                                                                                         and negative social
                                                                                                         effects due to the
                                                                                                         COVID-19 crisis.

    Team Europe        • As part of the EU's global response to the      • The following territories   • The EU would provide        N/A             Financial support         European
    Package              COVID-19 outbreak in coordination with the        can access the                humanitarian and                             funds are available        Commission Press
                         United Nations, the G7 and the G20, it            financial support funds,      financial support in line                   The MFA proposal           Release on the
                         released financial support to address             which will be attributed      with the approach                            for neighbouring           Team Europe
                         immediate health crisis and measures to           as follows:                   agreed at the G20 and                        countries would            proposals.
                         mitigate the socioeconomic impact of EU's         ‒ €3.25 billion to Africa     promoted by the UN.                          need to be adopted        European
                         partner countries (e.g. countries in Western      ‒ €1.19 billion to                                                         by the co-legislators.     Commission Press
                         Balkans, Africa, Middle East, Latin America,        Northern African                                                                                    Release on the MFA
                         etc.).                                                                                                                      The funds of the
                                                                             neighbourhood                                                                                       proposals.
                                                                                                                                                      MFA will be
                       • The Joint Communication introduces                  countries
                                                                                                                                                      available for 12
                         various actions to that effect. Underpinning      ‒ €1.42 billion in
                                                                                                                                                      months.
                         these actions is a financial support of more        guarantees for Africa
                         than €15.6 billion from existing external           and the
                         action resources.                                   neighbourhood
                       • The European Investment Bank already                countries
                         contributed €5.2 billion as part of this          ‒ €2.1 billion for the
                         project.                                            Southern
                                                                             Neighbourhood8
                       • An additional €3 billion in emergency funds       ‒ €962 million for
                         has been announced to provide macro-                the Eastern Partner
                         financial assistance (MFA) to 10                    countries9
                         enlargement and neighbourhood partners to         ‒ €800 million for
                         help them support citizens and businesses           the Western
                         from the economic fallout of the COVID-19           Balkans10 and
                         pandemic. The MFA will be available in the          Turkey
                         form of loans of highly favourable terms.         ‒ €1.22 billion to
                                                                             support Asia and the
                                                                             Pacific

8
  This includes Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia.
9
  This includes Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.
10
   This includes Bosnia and Herzegovina, Montenegro, Albania, Serbia, Kosovo and North Macedonia.
    squirepattonboggs.com                                                                                                                                                                           16
COVID-19: Summary of Government Financial Support
                                                                                                                   to Businesses as at 14 May 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          Relevant links
available?                                                        are eligible?                 any) for applying?                                          finance be
                                                                                                                                                            available?
                                                                    ‒ €291 million to the
                                                                       Caribbean and
                                                                       Pacific region
                                                                    ‒ €918 million to Latin
                                                                       America and the
                                                                       Caribbean
                                                                    ‒ €111 million to
                                                                       overseas countries
                                                                       and territories.
                                                                   The MFA will be
                                                                    attributed as follows:
                                                                      ‒ €180 million to
                                                                         Albania
                                                                      ‒ €250 million to
                                                                         Bosnia and
                                                                         Herzegovina
                                                                      ‒ €150 million to
                                                                         Georgia
                                                                      ‒ €200 million to
                                                                         Jordan
                                                                      ‒ €100 million to
                                                                         Kosovo
                                                                      ‒ €100 million to
                                                                         Moldova
                                                                      ‒ €60 million to
                                                                         Montenegro
                                                                      ‒ €160 million to
                                                                         North Macedonia
                                                                      ‒ €600 million to
                                                                         Tunisia
                                                                    ‒ €1.2 billion to
                                                                       Ukraine
Coronavirus        • The European Commission led a                • Recipients of funds can     • Organisations within or   • Through reaching out to the   • Funding available.   • European
Global                  Coronavirus Global Response pledging        include public sector         supporting the three        co-convenor of one of the                              Commission Press
Response                event on 4 May 2020, where it gathered      (to attribute to research     partnerships: (i)           three partnerships.                                    Release
                        €7.4 billion from donors worldwide.         funding), industry,           vaccines, (ii)            • Some of the funds will be                            • Further information
                                                                    researchers and any           therapeutics or (iii)       attributed to funding                                  can be found on the
                   • The Coronavirus Global Response Initiative     other organisation            diagnostics.
                     is comprised of three partnerships towards                                                               programs (e.g. EU's Horizon                            European
                                                                    involved in the                                           Europe) where specific                                 Commission
                     establishing universal diagnostics,            partnerships for
                     treatments and vaccines against COVID-19.                                                                grants will be applicable.                             factsheet.
                                                                    research and
                   • Each partnership will include relevant         developments as well
                     actors, such as public sector, industry,       as deployment of the
                     research, funders, regulators or               three key priorities: (i)

squirepattonboggs.com                                                                                                                                                                                      17
COVID-19: Summary of Government Financial Support
                                                                                                                               to Businesses as at 14 May 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               Relevant links
 available?                                                                    are eligible?                any) for applying?                                                 finance be
                                                                                                                                                                               available?
                             international organisations, which jointly will     vaccines, (ii)
                             develop actions to cope with COVID-19.              therapeutics and (iii)
                         • The pledging resources, which will be                 diagnostics.
                           managed by the European Commission,
                           can have the form of cash contributions,
                           indirect grants or guarantees for
                           investments (loan or equity).
 Eurogroup               • Finance ministers of the Eurogroup (i.e. the        • Addressed to member        • On the SURE package,           • On the SURE package, see        • On the SURE               • More information on
 Financial                 19 Eurozone countries), together with the             states and businesses.       see description above.           description above.                package, see                the broader support
 Emergency                 non-euro countries, agreed on 9 April 2020          • On the SURE package,       • On the businesses              • On the businesses loans           description above.          package is available
                           a financial emergency fund of €540 billion            see description above.       loans from the EIB, the          from the EIB, the application   • On the businesses,          here.
 Fund
                           (US$591 billion).                                                                  eligibility criteria will be     process will be determined        the loans by the EIB,     • More information on
                                                                               • Regarding businesses,
                         • The support package focuses on three                  the European                 determined by the                by the EIB's PPF.                 these will be               the business lending
                           areas:                                                Investment Bank (EIB)        EIB's PPF.                     • Concerning the ESM                available, once             fund, is available
                             ‒ National un-employment schemes (SURE              established a €25          • Regarding the member             Pandemic Crisis Support           member states have          here.
                               package described above) worth of €100            billion guarantee fund,      state support, when a            Mechanism, a country would        made the necessary        • More information on
                               billion                                           which aims to deliver        country requests to              request access the funds.         commitment to               the ESM role for the
                             ‒ For businesses, the European Investment           the €200 billion for the     access the ESM                                                     account for at least        Pandemic Crisis
                               Bank will provide €200 billion business           European economy.            Pandemic Crisis                                                    60% of the EIB's            Support Mechanism
                               lending to support businesses across                                           Support Mechanism, it                                              capital. A€25 billion       can be found here.
                                                                               • The guarantee fund will                                                                         guarantee fund is
                               Europe                                            be part of the EIB's         has to be unanimously
                             ‒ Lastly, for member states, a Pandemic                                          approved by the ESM                                                already announced
                                                                                 structure of Partnership                                                                        in this context.
                               Crisis Support Mechanism under the                Platform for Funds           Board of Governors (19
                               European Stability Mechanism (ESM)11              (PPF).                       euro finance ministers).                                         • Regarding the ESM
                               will be established, which would amount                                                                                                           Pandemic Crisis
                               to about 2% of member states' GDP,              • In connection to the                                                                            Support Mechanism,
                               aiming to assist European economies to            Pandemic Crisis                                                                                 the funds will be
                               access financial assistance of close to           Support Mechanism,                                                                              available once
                               €240 billion with standardized terms.             EU27 heads of state                                                                             approved by the
                                                                                 are expected to                                                                                 EU27 heads of state.
                                                                                 approve the package
                                                                                 on 23 April 2020.                                                                             • The EU27 heads of
                                                                                                                                                                                 state approved the
                                                                                                                                                                                 financial package on
                                                                                                                                                                                 23 April 2020. It shall
                                                                                                                                                                                 become effective on
                                                                                                                                                                                 1 June 2020.
                                                                                                                                                                               • Further financial
                                                                                                                                                                                 support measures
                                                                                                                                                                                 for the EU economy,
                                                                                                                                                                                 under the "Recovery

11
     The ESM is an intergovernmental organization providing financial assistance to Eurozone countries when experiencing financing problems.
     squirepattonboggs.com                                                                                                                                                                                                          18
COVID-19: Summary of Government Financial Support
                                                                                                                             to Businesses as at 14 May 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               Relevant links
     available?                                                             are eligible?                 any) for applying?                                                finance be
                                                                                                                                                                            available?
                                                                                                                                                                               Fund", are still under
                                                                                                                                                                               negotiation. The
                                                                                                                                                                               European
                                                                                                                                                                               Commission is
                                                                                                                                                                               tasked with
                                                                                                                                                                               analysing the related
                                                                                                                                                                               economic needs,
                                                                                                                                                                               determining the size
                                                                                                                                                                               of such a Recovery
                                                                                                                                                                               Fund and coming up
                                                                                                                                                                               as swiftly as possible
                                                                                                                                                                               with a proposal on
                                                                                                                                                                               how to establish it.
                                                                                                                                                                               This proposal should
                                                                                                                                                                               clarify the link
                                                                                                                                                                               between the EU's
                                                                                                                                                                               seven-year budget
                                                                                                                                                                               and the Recovery
                                                                                                                                                                               Fund.
     Pandemic            €750 billion stimulus package announced            Available to the             The PEPP enables the          No application required by        Purchases will be          The information on
     Emergency            by the European Central Bank (ECB) to buy           Eurosystem's Central          Eurosystem central             companies - purchases will         conducted until the         the ECB's response
     Purchase             government and corporate bonds to assist            Banks.                        banks to purchase12:           be carried out flexibly to         end of 2020.                is available here.
     Programme            sovereign debt markets.                            This will include all the      − Eligible marketable         achieve monetary policy                                       The European
                                                                              asset categories                 debt securities             objectives.                                                    Central Bank's
     (PEPP)
                                                                              eligible under the             − Eligible corporate                                                                         Decision is available
                                                                              existing asset purchase          bonds and other                                                                            here.
                                                                              programme (APP)                  marketable debt
                                                                              currently supporting             instruments
                                                                              Central Banks.
                                                                                                             − Eligible covered
                                                                                                               bonds
                                                                                                             − Eligible asset-
                                                                                                               backed securities.

12
  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.
  squirepattonboggs.com                                                                                                                                                                                                          19
COVID-19: Summary of Government Financial Support
                                                                                  to Businesses as at 14 May 2020
                                                                                             European Union (EU)
Key Contacts
                         Wolfgang A. Maschek
                         Partner, Brussels
                         T +322 627 11 04
                         E wolfgang.maschek@squirepb.com

                         Christina Economides
                         Public Policy Advisor, Brussels
                         T +322 627 11 05
                         E christina.economides@squirepb.com

 squirepattonboggs.com                                                                                         20
COVID-19: Summary of Government Financial Support
                                                                                                                         to Businesses as at 14 May 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                                            In most cases, the guarantee is
businesses            establishments and financing        ‒ Businesses subject to insolvency          • Be unsecured (with some exceptions for                    granted automatically, once
More                  entities between 16 March             proceedings as at 31 December                                                                         notified to Bpifrance.
                      2020 and 31 December 2020.                                                        companies with a large number of employees or
information                                                 2019 (unless a recovery or                  turnover)                                                For large companies, a case-by-
can be found         The guarantee can cover               safeguard plan is in place prior to
here.                 several loans, in which case it       the granting of the loan)                 • Eligibility is subject to the aggregate loans granted     case review will be performed
                                                                                                        to the borrower not having fallen below their level       by the Minister of Economy.
                      will enter into force in            ‒ Credit establishments
                      chronological order.                                                              as of 16 March 2020
                                                          ‒ Financing entities                        • There is a fee for the guarantee, which varies
                                                          ‒ Real estate civil companies (with           according to the length of the loan and the size of
                                                            a number of exceptions, in                  the business:
                                                            particular with respect to OPCIs)          For businesses employing more than 250 persons
                                                         There is a limit to the amount of the         or with a turnover of more than €50 million and a
                                                          loans that can be granted,                    balance sheet greater than €43 million:
                                                          depending on the date of the                  ‒ 0.50% for the first year
                                                          creation of the borrower (before or
                                                          after 1 January 2019).                        ‒ 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),
                                                          the decision will be taken on a case-         ‒ 0.50% for the two following years
                                                          by-case basis.                                ‒ 1% for the next three following years
                                                         The loan can be in the form of a prêt        A period of two months must lapse before a call
                                                          participatif.                                 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.

 squirepattonboggs.com                                                                                                                                                                                                  21
COVID-19: Summary of Government Financial Support
                                                                                                                 to Businesses as at 14 May 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 centrale 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 scheme is €5 billion.
reinsurance          companies to continue to use       income OECD countries are now
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         Payment by a solidarity fund –    VSEs, freelancers, micro-traders       Operated since before 1 February 2020.                From 1 April, all relevant             • The process for
small                First level aid: Compensation      and liberal professions.               Have not initiated insolvency proceedings before 1     companies will be able to make           the financial aid
enterprises          of the loss of revenue up to                                                                                                      a simple filing on the tax site to       application can
                                                                                                March 2020.
(VSEs) and           €1,500 for March and April                                                                                                        receive aid of up to €1,500. This        start now.
                     2020                                                                      Make less than €1 million in turnover.                 amount will be tax exempt.
independent                                                                                                                                                                                   • Payment date not
                    Additional aid between €2,000                                             Have a taxable annual profit of less than €60,000.    From 15 April, companies                 specified.
workers funds
                     and £5,000 for the most                                                   Have less than 10 employees.                           experiencing the highest level of
More                 difficult situations, and                                                                                                         difficulties will be able to obtain,
information                                                                                    Not be part of a group of companies that would
                     additional support may be                                                                                                         on a case-by-case basis,
                                                                                                globally exceed the above thresholds.
can be found         granted to avoid bankruptcy                                                                                                       additional aid of €2,000.
here, here and       on a case-by-case basis                                                  For the first level of aid:
                                                                                                                                                      For water, gas and electricity
here                                                                                           Have been shut down by an administrative order.        bills, companies can send an
                                                                                               Have experienced a loss of turnover in March           amicable deferral request
                                                                                                2020 compared to 2019: (i) for companies created       without delay by email or
                                                                                                before 1 March 2019 the comparison is made with        telephone to their supplier.
                                                                                                March 2019; (ii) for companies created after 1
                                                                                                March 2019, the comparison is with the average
                                                                                                monthly turnover over the period between the date
                                                                                                of the creation of the company and 1 March 2020;
                                                                                                and (iii) for entrepreneurs who have benefitted
                                                                                                from sick or maternity leave in March 2019 the
                                                                                                comparison is made with the average turnover
                                                                                                between 1 April 2019 and 29 February 2020.
                                                                                               Have experienced a loss of turnover in April 2020:
                                                                                                (i) for companies existing before 1 March 2019
                                                                                                the comparison is made, at the choice of the

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