New Financial Shield 2.0 of the Polish Development Fund

The Financial Shield 2.0 is intended to be the second stage of support for micro, small and medium-sized and large enterprises. 38 industries can count on help, including clothing retail, catering, land transport, hotels, tourism, entertainment and culture. The start of the programme is subject to the approval of the European Commission (EC).

In order to receive funding from Financial Shield 2.0, certain criteria will have to be met. The possibility of obtaining a non-refundable subsidy will depend on the decrease in turnover, as well as the continuation of the company's activity and employment levels, and the proof of actual losses. In addition, it will be proposed to redeem even all previously received support, under the so-called Financial Shield 1.0.

The subsidy can only be used to cover the costs of business activities, including staff salaries. It is not possible to finance the acquisition of another company from them. Moreover, it will not be possible to use the funds to pre-pay for a loan, lease or similar instrument.

In addition to subsidies, the planned forms of aid for entrepreneurs include non-refundable subsidies for micro-businesses, downtime remuneration, benefits from the Guaranteed Employee Benefits Fund and exemptions from social security contributions (ZUS).

What conditions must be met in order to be able to apply for a subsidy from Financial Shield 2.0?

The PDF Financial Shield 2.0 for micro-enterprises (1 to 9 employees):

• Turnover or balance sheet total for 2019 up to EUR 2 million
• Financial subsidies - PLN 18 thousand or PLN 36 thousand per employee
• Subsidies up to a maximum amount of PLN 324 thousand
• The amount of the subsidy depends on the number of employees and the decrease in turnover
• A decrease of at least 30% in turnover in 2020 due to COVID-19
• Non-refundable measures provided that economic activity is maintained at December 31, 2021 and average employment in 2021 compared to 2020 is maintained.
• Application period: January to February 2021. (with EC approval)

The PDF Financial Shield 2.0 for small and medium enterprises (190 to 249 employees):

• Turnover for 2019 less than or equal to EUR 50 million and balance sheet total less than EUR 43 million
• The financing of fixed costs not covered by revenue in the form of a financial subsidy of 70% of the gross loss for the period 1 November 2020 to 30 April 2021.
• The subsidy is up to a maximum amount: PLN 3.5 million
• The amount of the subsidy depends on the forecast of costs and revenues and gross loss
• Decrease in turnover of min 30% due to COVID-19
• Non-refundable funds on condition that the business activity is carried out and the subsidy is settled on a financing basis 70% of the gross loss
• Application period: January to February 2021. (with EC approval)

In addition: Possibility to redeem 100% of the subsidy from the Financial Shield 1.0

The PDF Financial Shield 2.0 for large enterprises (more than 250 employees):

• Turnover over EUR 50 million
• Updating of the conditions and extension of the existing scheme and introduction of a new version of the promotional loan, with a new damage period of COVID-19 until March 31, 2021.
• Application period: January to March 2021. (with EC approval)

The interest rate has been reduced and the term of the loans has been extended from 4 to 6 years

Detailed list of industries to which the PFR Financial Shield 2.0 is addressed according to the Polish Classification of Business Activities (PKD) codes can be found here.