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  • Financial support for small and medium entrepreneurs provided by the PFR

Financial support for small and medium entrepreneurs provided by the PFR

21 April 2020

The Polish Development Fund plans to launch a financial support program for small and medium entrepreneurs that are worth 50 billion PLN.

Small and medium entrepreneurs within the meaning of the program are entrepreneurs who employ between 10 and 249 employees and their annual turnover does not exceed 50 million EUR or their balance sheet total does not exceed 43 million EUR.

Small and medium entrepreneurs shall submit applications for financial support via the electronic banking of selected banks (the list of these banks is not known yet).

At the very beginning, it should be mentioned that the launch of PFR assistance programs depends on the approval of these programs by the European Commission. The content of the aid programs may change.

What are the conditions for granting aid for small and medium entrepreneurs?

For small and medium entrepreneurs to receive assistance from PFR, they must meet the following conditions:

  1. they had a decrease in economic turnover (sales revenue) due to coronavirus understood as a decrease in the sale of goods or services, in quantitative or value terms, not less than by 25% calculated as the ratio of turnover from any given calendar month after 1 February 2020 in comparison to the turnover of the previous month or the corresponding month of last year;
  2. no bankruptcy, liquidation or restructuring proceedings have been started against the entrepreneur;
  3. a real beneficiary within the meaning of the Act on Counteracting Money Laundering and Terrorism Financing, who is to use the financial support program, must have a tax residence on the territory of Poland and settle taxes for the last 2 financial years (if applicable) on the territory of Poland. Departure from this rule is possible when:
  4. the actual beneficiary of the support program will commit to move the tax residence to the territory of Poland within 9 months from the day of granting financing under the program, or
  5. in the case of foreign enterprises - additional commitments (e.g. investment commitments) will be accepted based on the individual consent of PFR;
  6. the entrepreneur conducted the business activity as for 31 December 2019.
  7. as for 31 December 2019 or as for the date of financing, the entrepreneur was not in arrears with payments of taxes and social security contributions, whereas the payment of installments or deferrals is not considered as arrears;
  8. the entrepreneur does not operate in the field of:
  9. production and trade of arms and ammunition,
  10. goods or services that may result in a restriction or violation of individual freedoms and / or human rights,
  11. areas questionable for ethical and moral reasons, e.g. animal experimentation, gambling and related activities, production and distribution of tobacco products and similar types of stimulants, production and distribution of narcotic drugs.

Financial support provided by PFR may be granted especially using the following instruments:

  1. subscribed or acquired shares, stocks, subscription warrants, bonds, debts and joining partnerships;
  2. granting loans, guarantees and warranties.

The Temporary Assistance Framework (published by the European Commission on 19 March 2020) allows, as a form of financial support for entrepreneurs, i.a. a subvention (its maximum amount is 800,000 EUR).

The financial instrument of the described aid program is financial subvention granted using the instruments specified above, based on the entrepreneur's agreement with PFR. Such an agreement specifies:

  1. allocation of obtained funds;
  2. acceptable repayment of loans (up to a maximum of 25% of the value of the subvention);
  3. a ban on using subventions for settlements with related entities;
  4. refund policy;
  5. contractual or non-contractual collateral.

It is worth mentioning that creditworthiness is not a condition for granting a financial subvention.

What is the possible amount of funding for a small or medium entrepreneur?

The maximum amount of financial subvention for small and medium entrepreneurs is determined as a percentage depending on the level of revenues in 2019 and their decrease due to coronavirus relative to the value for the financial year 2019.

The amount of subvention is presented in the table below.

Decrease in revenue

Amount of subvention


4% of revenue value


6% of revenue value


8% of revenue value


For example, if the entrepreneur's revenue for 2019 was 31,300,000.00 PLN, the subvention equals:

  • 1,252,000.00 PLN -> in the event of a 25% decrease in revenues;
  • 1,878,000.00 PLN -> in the event of a 50% decrease in revenues;
  • 2,544,000.00 PLN -> in the event of a 75% decrease in revenues.

PFR estimates that the average amount of financial support will set around 1.9 million PLN.

The maximum amount of subvention is 3.5 million PLN.

The subvention received by the small or medium entrepreneur is refundable on the following terms:

  1. In the event of stopping the business activity by the entrepreneur within 12 months from the date of granting the subvention - in the amount of 100% of the subvention value;
  2. In the event of conducting the business activity for a period of 12 months from the date of granting the subvention:
  3. unconditionally in the amount of 25% of the subvention, and
  4. additionally in the amount of 25% of the value of the subvention and up to the maximum amount of accumulated cash loss on sales indicated by the program beneficiary over a 12-month period from the first month in which the entrepreneur recorded a loss after 1 February 2020 or from the month in which the subvention was granted. The meaning of the accumulated loss depends on whether the entrepreneur conducts full accounting, revenue and expense book or is settled on the basis of a tax card or a lump sum, and
  5. in the amount of 0 to 25% of the subvention value - depending on the level of maintained employment.

So entirely, an entrepreneur who has maintained at least 100% employment level and has presented a cash loss on sales of more than 25% of the value of the subvention, may keep 75% of the amount of the subvention in a non-returnable form.

To put it simply, a 10% decrease in the number of employees increases the amount of subvention refund by 5% of the total value.

The condition of not enforcing a refund of a financial subvention is:

  1. fulfillment of any other obligations specified in the agreement of financial subvention by the program beneficiary;
  2. submission of the declaration by the program beneficiary with the attached financial documents confirming the cash loss on sales and confirming the status of employment.

The amount of the refundable financial subvention is repaid in 24 equal monthly installments, starting from the 13th calendar month following the date of payment of the subvention.

If you need more information or you need help with formalities, we encourage you to contact our specialist in this area:

Dorota Szlachetko-Reiter

[email protected]