It is now possible to submit initial applications for financial support under the Financial Shield of the Polish Development Fund for large enterprises.
The financial shield program of the Polish Development Fund is aimed at large companies employing at least 250 employees (as of 31 December 2019), whose annual turnover exceeds EUR 50 million or whose balance sheet total exceeds EUR 43 million and which:
- recorded a decline in economic turnover (sales revenues) of at least 25% in any month after 1 February 2020 compared to the previous month or the same month last year due to the coronavirus pandemic;
- have lost the ability to produce or provide services or to receive products or services by ordering parties due to the lack of availability of components or resources due to the coronavirus;
- are not receiving payments for sales due to coronavirus in an amount exceeding 25% of the amount due;
- they do not have access to the capital market or credit limits for new contracts due to market disruptions caused by the coronavirus;
- are participants in Sectoral Programs
The program is also open to small and medium-sized enterprises that employ more than 150 employees (as of December 31, 2019) and whose annual turnover for 2019 exceeds PLN 100 million, provided that such an enterprise is not a beneficiary of the financial shield for small and medium-sized enterprises and the financing gap in accordance with financial projections exceeds PLN 3.5 million or the financing concerns the Sectoral Program in connection with the coronavirus.
Under the financial shield for large companies, it is possible to obtain financing in three areas:
- Liquidity financing in the form of loans or bonds up to PLN 1 billion for a period of two years (with the possibility of extension by 1 year);
- Preferential financing in the form of preferential loans worth up to PLN 750 million, non-repayable and dependent on financial loss and maintaining employment, for a period of 3 years;
- Investment financing in the form of shares or stocks acquired on market terms as part of public aid worth up to PLN 1 billion.
Detailed conditions of financial support and all obligations for the enterprise will be specified in the agreement concluded with the Polish Development Fund.
An initial application for financial support can be completed on the Polish Development Fund website. It will require basic information about the company, its 2019 revenue, 2019 EBITDA, and projected capital needs due to the COVID-19 pandemic. The application is preliminary, and the final decision to grant financial support will be based on the entrepreneur's submissions, including a multi-year strategy or restructuring plan demonstrating financial viability (in the case of investment financing), financial projections, and a positive result of a simplified or confirmatory due diligence review conducted by PFR or its advisors.
To benefit from the shield, an entrepreneur must not be in the process of liquidation, bankruptcy, or restructuring. Furthermore, they must be a tax resident or have settled taxes in Poland for two years. According to the CRBR register, the beneficial owner cannot be based in a tax haven.
The beneficiary must be operating as of December 31, 2019, and as of the date of application submission. Financial support will not be available to entrepreneurs who have tax or social security arrears as of December 13, 2019, or as of the date of application submission.
Detailed eligibility and funding requirements will be announced at the program's launch. Currently, the program is awaiting notification from the European Commission.
