Companies can apply for a grant for working capital for June

The European Commission has approved the amendments to the support programme for grants for working capital for companies affected by COVID-19, approved by the government. Going forward, support will focus on companies operating in sectors that have suffered the most severely during the COVID-19 crisis. The conditions for receiving support have also been clarified. Companies can apply for a working capital grant for June until 15 July 2021, while the acceptance of applications for the preceding months of the support period will end on 15 June.

Following the lifting of the state of emergency on 7 April 2021, restrictions on conducting economic activity are gradually being eased. Therefore, starting in May 2021, the conditions for receiving support have been clarified, with support focused specifically on companies whose operations remain fully or partially restricted. Fifty-four sectors have been identified whose companies will not be eligible for a working capital grant from May 2021. These are sectors whose activities were not previously subject to restrictions and which are currently conducting fully-fledged economic activity, for example, construction; the provision of personnel; electricity generation and trading; repair services; office administrative services, etc.

Likewise, from May 2021, the amount of the grant awarded together with the company's turnover for the relevant month will not exceed the turnover in the corresponding month of 2019 or 2020, or the average turnover in August, September and October 2020 combined, for the companies referred to in the Cabinet regulations.

The amount of support for June will be set at 30% of the company's gross wages, on which payroll taxes were paid in August, September and October 2020, but not more than EUR 50,000 per month.

The Cabinet regulations also clarify the conditions under which a working capital grant is not awarded and specifically define the conditions under which companies may reapply for a working capital grant for those months of 2021 for which their previous application was rejected.

We invite you to familiarise yourself in detail with the amended Cabinet regulations on support for companies affected by the COVID-19 crisis to ensure the flow of working capital.

Up-to-date information on the possibility of applying for a working capital grant is available in the “COVID-19” section of the State Revenue Service website.

Author:

Ministry of Finance