Financial Shield 2.0 of the Polish Development Fund

From January 15, 2021 entrepreneurs can apply for financial subsidies under the Financial Shield 2.0 of the Polish Development Fund for micro, small and medium enterprises. Financial Shield 2.0 is a government program adopted by Cabinet Resolution No. 2/2021 of January 5, 2021 that allows businesses to apply for financial support in the wake of the COVID-19 outbreak. Entrepreneurs conducting business activity of a specific PKD code, in particular in the field of gastronomy, sports, tourism, hotels, culture and entertainment or retail sales, can benefit from the aid.

Financial Shield for micro entrepreneurs. The subsidy opportunity has been provided to micro entrepreneurs who had 1 to 9 employees as on December 31, 2019 or as on July 31, 2020 and recorded a decline in revenue greater than or equal to 30% during the period April 1, 2020 to December 31, 2020 as compared to the corresponding period in 2019 or October 1, 2020 to December 31, 2020 as compared to the corresponding period in 2019 due to disruption in the economy as a result of COVID-19. 

The amount of the financial subsidy is calculated by multiplying the number of persons employed as of September 30, 2020, on a full-time equivalent basis, by the base amount of the subsidy, which depends on the amount of the decrease in revenue during the compared periods. The amounts of the subsidy are respectively PLN 18,000.00 per employee in case of a decrease in turnover by 30-60% or PLN 36,000.00 per employee in case of a decrease in turnover above 60%.

Financial Shield for small and medium entrepreneurs. Small and medium entrepreneurs with up to 249 employees as on December 31, 2019 or as on July 31, 2020 and who have experienced a minimum 30% decrease in their business turnover during the period April 1, 2020 to December 31, 2020 or during the period October 1, 2020 to December 31, 2020 as compared to the corresponding periods in 2019 due to disruption in the economy as a result of COVID-19 can apply for the Small and Medium Entrepreneur Financial Subsidy. 

The financial subsidy shall be granted up to 70% of the actual gross loss for the period from 1 November 1, 2020 to March 31, 2021. The amount of the subsidy shall be determined on the basis of the gross loss for the period from November 1 to December 31, 2020, established on the basis of the actual loss, and for the period from January 1 to March, 31 2021, on the basis of the forecast loss. As an additional condition for the subsidy, businesses must record a decrease in business turnover of at least 30% for the period from November 1, 2020 to December 31, 2020 compared to the period from November 1, 2019 to December 31, 2019 and for the period from January 1 to March 31, 2021 compared to the period from January 1 to March 31, 2019