Poland’s COVID-19 stimulus package to pump EUR 24 bn to companies: PM

The government’s new stimulus plan aims to finance companies with around PLN 100 bn (EUR 24 bn) within two to three weeks, the PM says.

The government’s stimulus package aims to unlock finance of up to PLN 100 bn (EUR 22bn) “within two-three weeks,” according to Prime Minister Mateusz Morawiecki, with the majority going to small businesses and the aim being to save up to 5 million jobs.

The new stimulus package, in addition to measures which have already been announced, will, according to the Prime Minister, bring total covid-19 assistance to “over PLN 300 billion - PLN 320, or 330 billion.”

The program unfurled today consists of three components: PLN 25 bn (EUR 5.1 bn) will go to micro-enterprises, PLN 50 billion (EUR 10.2 bn) to small and medium-sized enterprises, and PLN 25 billion (EUR 5.1 bn) to large enterprises.

Officials estimate that about 350-400 companies will benefit from the financial shield. Small companies Financing for the smallest companies in the form of subsidies is directed to firms employing from 1 to 9 people (excluding the self-employed) whose annual sales do not exceed EUR 2 million;

Companies eligible for the scheme will be those whose revenues have decreased by 25 percent or more in any month after 1 February 2020 compared to the previous month or the same month last year due to COVID-19.

Any companies which have been closed due to sanitary restrictions will also be able to apply.

The subsidies are geared so that up to seventy five percent of the funding value is non-returnable, but the recipient companies will have to guarantee that they will continue in business for up to a year and maintain their staffing levels in order to qualify for that.

The maximum amount of the subsidy depends on the scale of the company’s decrease in revenues and the number of employees it has. Funding may amount to up to PLN 324,000 per company.

Medium-sized companies The rules determining the PLN 50 bn (EUR 10.1 bn) of financing for SME companies employing from 10 to 249 employees, whose annual turnover does not exceed EUR 50 million are basically the same as for smaller companies.

The main difference from the subsidies available for small companies is the maximum amount of the cash available. Medium-sized companies will be able to apply for a funding of between four and eight percent of their annual turnover, up to a maximum of PLN 3.5 million (average PLN 1.9 million).

Larger companies Larger businesses will also be able to apply for assistance. In their case there are greater controls on which companies will be eligible.

Only companies which were founded prior to 1 January 2020 will be able to apply and they will have to be up to date with their tax and social security and registered in Poland.

PLN 25 bn will be available in total for larger corporates. Large companies will be able to apply for cash flow funding in the form of loans or bonds for a period of 2 years worth up to PLN 1 billion. The will also be able to access preferential loans for a period of 3 years. These loans will be partially non-returnable depending on how well the companies were able to maintain employment. Up to PLN 750 million will be available per entity, depending on the scale of its operations and the drop in sales it has experienced.

The companies will also be able to apply for investment financing of up to PLN 1 billion per entity.

The maximum value of the program for large companies is PLN 25 billion.