PFR financial shield for small and medium-sized enterprises is now ready. Grants for micro, small and medium-sized companies have been launched on the 29th of April. PLN 100 billion to obtain! 17 banks will process the applications.
Who Can Benefit From Help?
From yesterday, that is from the 29th of April, micro, small and medium-sized companies employing from 1 to 249 employees can apply for subsidies under the so-called the financial shield of the Polish Development Fund. The subsidies are serviced by 17 commercial banks and the majority of cooperative banks. The total value of aid is to amount to PLN 100 billion, of which PLN 75 billion will go to micro, small and medium-sized enterprises (the rest is intended for aid to large companies). PFR estimates that 670,000 SMEs that have suffered as a result of the coronavirus pandemic can benefit from the support. The application is based on the entrepreneur's declarations, and its verification will be carried out automatically by PFR based on data from banks (identification, including NIP number), ZUS (employment) and the Ministry of Finance (including sales revenue for the previous financial year for SMEs).
Once this information is confirmed, the amount of the subsidy will be calculated. On average, it is to be 80,000. zloty. Maximum - PLN 324 000.
Thanks to the cooperation of banks, PFR, the National Clearing House and financial institutions, a system was created in a very short time that will allow companies to obtain specific financial aid on the basis of a form filled in via electronic banking.
On Monday, the 27th of April in the evening, the program was notified by the European Commission, which was the last required step to launch it. After the latest recommendations of the European Commission have been technically implemented, adoption of applications will start in the next few days. Already today, the call for applications has been launched by, among others Bank Pocztowy (full list of banks at the end of the article).
In the current economic situation, it is crucial for many companies to quickly raise capital that will allow them to maintain liquidity, settle liabilities, including employee salaries.
Applications for funding in the form of partially non-returnable subsidies will be able to be submitted by representatives of companies that are clients of a given bank. The application will be based on the entrepreneur's declarations, and its verification will be carried out automatically by PFR on the basis of data from banks (identification, including NIP number), ZUS (employment) and the Ministry of Finance (including sales revenue for the previous financial year for SMEs). Once this information is confirmed, the amount of the subsidy will be calculated.
If, on the basis of the available data, it is granted in a lower amount than requested by the entrepreneur, he will receive information from the Fund via the bank about the reasons for making such a decision. In this situation, the subsidy will be paid in a lower amount, determined by the PFR, and the entrepreneur will be able to appeal against the decision. The possibility of appeal will be launched in banking systems from the 11th of May.
The entire process, including the receipt of the decision and signing the contract with PFR, and the submission of an appeal against the Fund's decision, will take place online in the bank's transaction system. Companies that submit an application or receive a subsidy under the PFR Financial Shield do not incur any costs, e.g. for a bank commission or for processing the application.
What do I need to submit an application?
In order to efficiently complete the application, you need to prepare data such as the number of employees (including civil law contracts) per full-time and the amount of revenues in given months, which will allow the enterprise to qualify as a micro, small and medium-sized enterprise, as well as calculate the amount of the subsidy due .
Since the basis for the verification of applications and declarations that affect the granting of subsidies and its amount will be public registers, it is important that the entrepreneur who will apply for it submits a VAT declaration in time that will allow it to be processed and approved by the Ministry of Finance. Before starting to fill in the application, it is also worth reading the information on the PFR website, where the principles of the PFR Financial Shield are described in detail, as well as on the websites of their banks.
Quick and safe application and distribution of funds will be possible thanks to participation in the project of Krajowa Izba Rozliczeniowa, which created a modern system of automatic information transfer between banks and PFR. A great deal of work, without which the implementation of the Financial Shield would not have been possible, was also performed by the banks participating in the project. This is another example of successful cooperation between the banking sector and public institutions.
Who is the PFR Financial Shield addressed to?
The PFR program is directed to:
- micro-enterprises employing from 1 to 9 employees (without owner) as of the 31st of December 2019, whose annual turnover or balance sheet total does not exceed EUR 2 million;
- small and medium-sized enterprises employing up to 249 people, whose annual turnover does not exceed EUR 50 million or the balance sheet total does not exceed EUR 43 million.
The subsidy will be available to companies which experienced a decrease in revenues by at least 25% in any month after February 1 this year. compared to the previous month or the same month last year due to COVID-19.
The maximum amount of subsidies for micro-enterprises depends on the scale of the decrease in revenues and the number of employees and may amount to 324,000. PLN (on average PLN 70-90 thousand), and 75% of its value may be non-returnable. 25% of the value is non-returnable, provided that the business is continued within 12 months of its granting. An additional 50% of the subsidy is non-returnable depending on the level of maintenance of average employment over a period of 12 months. In the case of reducing employment, the percentage of subsidies paid back by the entrepreneur is correspondingly higher, which is a strong incentive for the beneficiaries to keep jobs. After 12 months, the rest of the subsidy is repaid in installments over 24 months.
For companies from the SME sector, the amount of the subsidy, which constitutes 4%, 6% or 8% of annual sales, depending on the scale of the decrease in sales, may not exceed PLN 3.5 million (PLN 1.9 million on average). 75% of the financial subsidy may be non-returnable, including 25% on the condition of continuing operations, 25% depending on the loss on sales incurred by the enterprise, and additionally 25% depending on the maintenance of average employment over a period of 12 months. The return of the subsidy by the entrepreneur will be proportionally higher in the event of a decline in employment.
The total amount of support for micro-enterprises is PLN 25 billion, of which the assumed amount of non-returnable funds will be approximately PLN 16 billion. The maximum value of the program for SMEs is PLN 50 billion, of which the assumed amount of non-returnable funds may be PLN 32 billion.
For large companies whose employment is at least 250 employees (total employment in the capital group), and the turnover exceeds EUR 50 million or the balance sheet total exceeds EUR 43 million on a consolidated basis, the PFR Financial Shield provides for liquidity financing, preferential loans or instruments capital on conditions individually agreed with PFR. Applications for financing for large companies can be submitted directly to the PFR on the website.
Smaller companies can also take advantage of this method of financing. The condition is the employment of over 150 employees and a turnover exceeding PLN 100 million, in a situation when their financing gap, in accordance with the financial projections, exceeds PLN 3.5 million, or the financing relates to the Sector Program in connection with COVID-19.
The condition for obtaining support under the PFR Financial Shield is running a business as of December 31, 2019, as well as not having any arrears in paying taxes and social security contributions.
Applications for support under the PFR Financial Shield for micro, small and medium-sized enterprises can only be submitted through the following banks:
- Alior Bank
- BPS Bank and associated and collaborating Cooperative Banks
- Bank Millennium
- Bank Pekao S.A.
- Bank Pocztowy
- BNP Paribas
- BOŚ Bank
- Citi Handlowy
- Credit Agricole
- Getin Noble Bank
- Idea Bank
- ING Bank Śląski
- mBank
- Nest Bank
- PKO Bank Polski
- Santander Bank Polska
- SGB-Bank S.A. and SGB Cooperative Banks and cooperating Cooperative Banks
The dates of launching the service in other banks can be checked on the PFR website (https://pfrsa.pl/tarcza-finansowa-pfr/tarcza-finansowa-pfr-dla-mmsp.html)
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