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 squirepattonboggs.com
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
squirepattonboggs.com i
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.
squirepattonboggs.com 1COVID-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.
squirepattonboggs.com 2COVID-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
squirepattonboggs.com 3COVID-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. .
squirepattonboggs.com 4COVID-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
squirepattonboggs.com 5COVID-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.
squirepattonboggs.com 6COVID-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.
squirepattonboggs.com 7COVID-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).
squirepattonboggs.com 8COVID-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
squirepattonboggs.com 9COVID-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 10COVID-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 11COVID-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 12COVID-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 13COVID-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 14COVID-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 15COVID-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 16COVID-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 17COVID-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 18COVID-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 19COVID-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 20COVID-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 21COVID-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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