Author: Leevi Törmäkangas
Emergency funding available for Finnish companies due to Coronavirus
The Finnish government has implemented tough measures in the fight against the Coronavirus. In addition to numerous restrictions, the authorities are taking swift action to stimulate the economy. The Ministry of Economic Affairs and Employment has provided reassurances that the financing of Finnish companies will be secured during these uncertain times. That is the reason why emergency funding has now been put to action.
The government is now increasing the amount and availability of public funding to SMEs and midcaps. Midcap companies are defined as large companies with a group turnover of up to 300 MEUR. Under the prevailing legislation, large and stock-listed companies cannot receive state funding to a similar extent, although emergency measures are being planned for these companies as well.
What kind of emergency funding is available now?
Business Finland is opening two new funding services due to the Coronavirus outbreak. If your business’s supply chain has been adversely impacted (or might be impacted in the future), your company is eligible for public funding. The new funding services are specifically targeted at companies operating in the worst affected sectors, such as tourism (including ancillary services), creative and performing sectors.
There are two tailored funding products available for Finnish companies:
1) Preliminary funding (maximum grant 10 KEUR). This funding allows companies to conduct necessary studies, investigations and processes to overcome the challenges posed by the Coronavirus epidemic. The funding can be used for instance to:
- identify alternative supply chains and subcontractors
- plan and develop new areas of business
- develop or rearrange the organisation of production
- conduct studies and preparatory work for the development of accommodation and tourism services
2) Emergency business development support (grants between 50 KEUR and 100 KEUR). This funding will be given for companies to address identified business development needs, and to improve their profitability during and after the current disruption caused by the epidemic. The funded projects are expected to result in new products or services offered or upgraded production processes.
It must be noted that the aforementioned funding instruments are governed by the de minimis regulation. Therefore, your company is eligible for this emergency funding unless you have exceeded your de minimis quota.
Alongside these new tailored instruments, public funding provided by other Business Finland programs is set to continue as per usual. The disruption caused by the Coronavirus is taken into account in currently ongoing projects. For example, loan repayments and amendments to project schedules and contents can be made more flexibly.
Finnvera, on the other hand, has stated that it will significantly increase its funding earmarked for SMEs. Finnvera’s funding products, such as guarantees, investment and capital loans, are made available for SMEs whose working capital needs have increased by the epidemic.
Does your company need funding for emergency business planning?
Have your supply chains been adversely impacted?
Are you operating in one of the sectors worst affected by the epidemic?
If you are interested to learn more about the emergency funding, contact us through our contact form or by emailing our Finnish public funding expert Jaakko Ojanen