ANNOUNCEMENT 27 Apr 2020

In April 2020, the Polish authorities notified the European Commission of their intention to establish an aid scheme in the form of repayable advances for micro, small and medium-sized enterprises.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Letter to the Member State – Poland COVID-19: repayable advance scheme for micro, small and medium-sized enterprises. Available at: https://ec.europa.eu/competition/state_aid/cases1/202018/285702_2151574_32_2.pdf

SA.56996 COVID-19 - Repayable advance scheme for micro, small and medium-sized enterprises. Available at: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_56996

The European Commission, Press Release, “State aid: Commission approves €16.6 billion Polish repayable advance scheme to support companies affected by the coronavirus outbreak”. Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_20_760

European Commission Decision. Subject: State Aid SA.59715 (2020/N) – Poland
COVID-19: Modifications to SA.56876, SA.56922, SA.56979, SA.56996, SA.57015, SA.57054, SA.57055, SA.57191, SA.57306, SA.57452, SA.57519 and SA.57726. Available at: https://ec.europa.eu/competition/state_aid/cases1/202051/289844_2223039_36_2.pdf

European Commission Decision. Subject: State Aid SA.59758 (2020/N) – Poland
Amendment to SA.56996 (2020/N) as prolonged by SA.59715 – COVID-19: repayable advance scheme for micro, small and medium-sized enterprises. Available at: https://ec.europa.eu/competition/state_aid/cases1/202051/289903_2224494_24_2.pdf

European Commission Decision. Subject: State Aid SA.62078 (2021/N) – Poland
Prolongation of SA.56876, SA.56896, SA.56922, SA.56996, SA.57015, SA.57054, SA.57055, SA.57065, SA.57172, SA.57191, SA.57452, SA.57519, SA.59763 and SA.60376. Available at: https://ec.europa.eu/competition/state_aid/cases1/202112/292816_2257372_25_2.pdf

Inception date: 27 Apr 2020 | Removal date: 31 Dec 2021

State loan

On 23 April 2020, the Polish authorities notified the European Commission of their intention of establishing a financial support scheme for micro, small and medium-sized enterprises. The Commission approved the scheme on 27 April 2020. The scheme has a total budget of PLN 75 billion (USD 17.9 billion) and will be in force until 31 December 2020.

The scheme aims at providing liquidity to businesses affected by the Coronavirus pandemic. The scheme also aims to “maintain jobs and to minimize other economic effects of the pandemic caused by the shutdown of business, lower consumption demand and supply chain disruptions.” The scheme provides support in the form of repayable advances. The beneficiaries of the scheme are micro-enterprises and SMEs in Poland in any sector. Approximately 350,000 micro-sized enterprises and 26,000 SMEs are expected to benefit from the support scheme. The maximum amount of repayable advance under the scheme for micro-sized enterprises is PLN 324 thousand (77 thousand USD) per entity whereas the maximum amount of support for SMEs is PLN 3.5 million (800 thousand USD) per entity. The reimbursement of the repayable advances will be paid in 24 monthly installments. Repayments will start 13 months after the date of the first payment of repayable advances. For non-reimbursable part of the advances, see related intervention.

According to the European Commission: “The measure is liable to distort competition, since it strengthens the competitive position of its beneficiary. It also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists.”

However, the Commission approved the state aid: "... on the grounds that it is compatible with the internal market pursuant to Article 107(3)(b) TFEU" concluding that: "... the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State".

The state aid is approved under the Temporary Framework for State aid measures. The European Commission adoption of a Temporary Framework under the State Aid rules of the European Union was adopted on 19 March, see related state act.

On 15 December 2020, the European Commission issued a decision under state aid case 59715 extending the coverage period of the scheme until 30 June 2021.

On 16 March 2021, the European Commission approved, under state aid case 62078, a second extension of the scheme until 31 December 2021. Both amendments above are in line with the prolongations of the Temporary Framework (see related state act).

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 27 Apr 2020 | Removal date: 31 Dec 2021

Financial grant

On 23 April 2020, Poland notified the European Commission of their intention to establish a financial support scheme to support micro, small and medium-sized enterprises in the context of the COVID-19 outbreak. The Commission approved the scheme on 27 April 2020. The scheme has a total budget of PLN 75 billion (USD 17.9 billion) and will be in force until 31 December 2020.

Eligible beneficiaries of the scheme are micro, small and medium-sized enterprises in Poland. The scheme provides support in the form of repayable advances. However, if the business maintains its business activity for 12 months from the date of the repayable advances is granted, some portion of the financial support is granted to the businesses. This amount can not exceed 75% of the total amount of the repayable advances and calculated depending on the employees kept in the business.

On 15 December 2020, the European Commission issued a decision under state aid case 59715 extending the coverage period of the scheme until 30 June 2021.

On 17 December 2020, the European Commission approved state aid case 59758 allowing businesses active in specific sectors to retain up to 100% of the repayable advance, instead of 75%, under certain conditions.  

On 16 March 2021, the European Commission approved, under state aid case 62078, a second extension of the scheme until 31 December 2021. Both amendments above are in line with the prolongations of the Temporary Framework (see related state act).

 
 
N/A
 
N/A