The European Commission has approved Poland’s program for economic support for small and medium-sized enterprises (SMEs) and micro-businesses—a program that is intended to provide economic relief in response to the coronavirus (COVID-19) pandemic.
Eligibility for the program requires a decline in economic turnover (revenue on sales) by at least 25% in any month after 1 February 2020, when compared to the previous month or corresponding month of the previous year, because of disruptions in the economy induced by COVID-19.
One change made in response to EC recommendations relates to the tax residence of the beneficial owner of the entity applying for economic support.
Applications for financial aid under the support program were accepted beginning 29 April 2020 by means of the electronic banking systems of banks cooperating with the fund.
The amount of the economic subsidy depends on the amount of sales revenues for 2019 and the amount of decline in revenues, but subject to a cap of PLN 3.5 million (approximately €77,000) per entity. The subsidy is to be used to cover day-to-day operating costs (but not costs relating to direct or indirect acquisitions of another entity or settlements with the business owner or owner-related entities). The subsidy can be used for early repayment of loans (up to a maximum of 25% of the loan value). The subsidy will be provided as an interest-free loan.
Read a May 2020 report [PDF 240 KB] prepared by the KPMG member firm in Poland
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