Additional support for SMEs
The amount of regular expenditure that has not yet been covered by any support measures (such as cheap state loans) and the turnover reduction that each enterprise has recorded will be the main criteria for its inclusion in the new program for medium-sized enterprises from which each recipient may receive up to 3 million euros.
The new program is expected to apply as of February, with the total budget coming to just under €500 million.
According to a top Finance Ministry official, the measure relies on the temporary framework of the European Union and will be financed exclusively by the state budget. He noted that it will include specific sectors hurt by the pandemic, explaining that it will be a special, targeted support framework that will come into action as soon as the ministry has received the closing figures for the 2020 financial year.
The annual regular expenditure measured will include corporate spending such as salaries, rent, utility bills etc, but will have the sums of state support to date, such as the Deposit To Be Returned, subtracted. Enterprises will be supported with a sum that will be a ratio of expenses that have not been covered. So far the rate of support has not been determined; also pending is the decision whether this support should be paid back to the state or not.
For instance, a company with regular expenditure of €1 million has received state loans of €250,000, so the uncovered spending comes to €750,000. If it is decided that the state support should come to 70%, the enterprise will receive €525,000.
The EU regulation says that in periods of crisis, in order to keep enterprises sustainable and preserve jobs, member-states can provide support to cover regular spending that has not been covered by their turnover – by up to 90% for small enterprises and up to 70% for other businesses.
The enterprises that will receive this new support in Greece must employ up to 25 workers and have an annual turnover of up to €50 million.
