COVID-19 Summary of Government Financial Support and Middle East 25 August 2021

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squirepattonboggs.com CONTENTS EUROPE 1 BELGIUM 1 4 (EU) 6 17 42 ITALY 62 76 85 SPAIN 94 UNITED KINGDOM 99 MIDDLE EAST 106 KINGDOM OF SAUDI ARABIA 106 UNITED ARAB EMIRATES 111

Around the globe, many Governments have reacted quickly to try to mitigate COVID-19's impact by implementing financial support schemes and resources to help support local businesses. As lockdown has progressed, certain measures, which were temporarily enacted, have come to an end. This guide uses the traffic light system below to show the current status of the measures:- = Measure expired = Measures are set to expire in 1-2 weeks = Ongoing measure

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squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Belgium Financing Facility Support

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available?

Federal Guarantee  The federal state will provide a guarantee  All "viable" non-financial  All new loans with a maximum  The scheme applies  The measure is Scheme of €50 billion for certain loans issued by companies registered with term of one year (unless automatically. currently in force. financial institutions in Belgium the Belgian company extended) entered into between More information can be  Any losses that are suffered will be register. 1 April 2020 and 30 September found here (in French), 2020 (unless extended) will be here (in Dutch) and here apportioned between the federal state and  SMEs. the financial sector: covered by the federal (in English).  Not-for-profit organizations. guarantee. First loss of 3% to be supported by ‒  Self-employed. the financial sector  Excluded from the benefit of the  Excluded "non-viable" guarantee: Losses between 3% and 5% shared ‒ companies which were: equally between the financial sector ‒ Re-financings and the federal state ‒ In breach of payment ‒ Drawdowns under obligations under For losses in excess of 5% the agreements entered into ‒ existing credit federal state will bear 80% of the before 1 April 2020 agreements or in loss. Financings that cannot respect of social ‒ contractually be used for security or tax Belgian activities of the obligations on borrower. 1 February 2020, or more than 30 days late  Agreements that specifically in respect of such exclude the benefit of the obligations as of guarantee. 29 February 2020 ‒ Subject to a credit restructuring procedure as of 31 January 2020 ‒ Given other information available, must be deemed a company in financial difficulty. Repayment Moratorium  For existing loan agreements (not leasing  All "viable" non-financial  The applicant will need to prove  Applications to be lodged with  Available now. Scheme or factoring agreements), companies, self- companies. that it is established in Belgium, the relevant credit institution. employed workers and individuals can  SMEs. is experiencing financial More information can be request a moratorium until 31 October difficulties resulting from the found here (in Dutch) and 2020 on their loan repayment (principal  Self-employed. COVID-19 virus, that it is up–to- here (in French). payments only not interest payments  Homeowners experiencing date on its loan payments, tax which remain due) obligations (without financial difficulties in and social security payments, any penalties becoming due). respect of their mortgage that it has complied with all its payments. contractual obligations vis-à-vis 1 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Belgium

its bank lenders over the 12 month period prior to 31 January 2020 and it is not subject to any debt restructuring measures.  The homeowner will need to demonstrate a loss of revenue is in connection with COVID-19 and that it is up-to-date on its mortgage payments (up to 1 February 2020) and its financial means are lower than €25,000.

Other Financial Support What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available?

Federal Tax Relief  A payment plan, and exoneration from  Companies and self-  Companies or self-employed  Application to be made to the  Available now. Scheme penalties and late payment interest, can employed. who are affected by the COVID- Federal Tax Authority by 30 be negotiated with the federal tax 19 crisis (must provide June 2020 at the latest. More information can be authorities for: evidence). found here (in French) Wage withholding tax and here (in Dutch). ‒  Fraud related tax debts are not ‒ VAT eligible. ‒ Corporate Income Tax ‒ Income Tax. Social Security  The payment of social security  Companies.  Companies that have been shut  Automatic for companies in  Available now. Measures contributions can be postponed until 15 down due to COVID-19 or who certain specific sectors and December 2020. have decided to shut down. those that were required to More information can be close (such as restaurants, found here (in French) bars, leisure businesses, and here (in Dutch). cultural and sport related businesses).  Upon request for other companies that have decided to fully shut down (i.e. whose production and sales activities have stopped). Temporary  Under the temporary unemployment  Companies.  None.  Application to be made to the  Available now. Unemployment for regime, an employer can suspend wage Belgian National Employment Force Majeure payments and workers will receive Office (ONEM). unemployment benefits corresponding to 2 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Belgium

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? More information can be a percentage of their wages from the found here (in French) federal authorities. and here (in Dutch).  This applies to blue collar and white collar workers.  The application procedures have been simplified given the COVID-19 crisis.

Key Contacts

Bart Vanderstraete Amaury de Borchgrave d'Altena Partner, Brussels Counsel, Brussels T +322 627 1120 T +322 627 7647 E [email protected] E [email protected]

3 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Czech Republic Financing Facility Support What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be available? eligible? for applying? available?

Programme  Guarantee provided by ČMZRB  For all businesses up to 250  The supported activity must be  Application must be made  Applications may be COVID III in the total amount of CZK150 employees, which can receive in the territory of the Czech together with a request for a submitted from 18 May 2020 billion. guarantee up to 90% of the Republic. loan via a bank, which until 31 December 2021. Further information principal. cooperates with ČMZRB on can be found here .  Guarantee may be provided for  The loan must not be supported loans up to CZK 50 million.  For all businesses up to 500 by any other financial support programme COVID III. employees which can receive (i.e. de minimis), including guarantee up to 80% of the directly managed EU support. principal.  The entity did not receive support from the programme COVID Plus. Programme Covid  Guarantee up to CZK330 million  Businesses with at least 250  The applicant must prove it was  Application may be submitted  The funds will be available Plus (including existing products) per employees. not in pre-existing crisis before here. upon approval of the individual provided by the Export  Businesses must not evidence 12 March 2020. application. Further information Guarantee and Insurance can be found here. signs of bankruptcy before  The funds may be used to Corporation (EGAP). commencement of the restrictive sustain liquidity and finance measures on 12 March 2020. operations.  Businesses which have majority of their operations in transportation, hospitality and gaming are not eligible. Programme  Subsidy for companies affected  An alternative to Programme  The applicant was affected by  Applications are to be sent to the  The finances would be COVID-Uncovered by the COVID19 pandemic COVID-2021. the COVID19 pandemic Ministry of Industry and Trade available following the Costs measures in the amount of 60%  A decrease in turnover of more measures. until 13 September 2021. application being approved. of expenses (40% if the state or than 50% in April and May 2021 Further information local authority has a stake in the can be found here. compared to April and May company) from which the 2019. amount of other received subsidies is deducted.  The maximum amount of the subsidy is CZK 25,000,000.

Other Financial Support

4 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Czech Republic

What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be available? eligible? for applying? available?

Support for  Fast track of insurance  The applicant must be a Czech  The applicant must be a Czech  Application may be submitted  Still in effect. exporters requests. exporter (natural persons exporter (natural persons here.  Shortening the period to residing in the Czech Republic residing in the Czech Republic or Further information or businesses with their businesses with their registered can be found here. recognize insurance claims (waiting period) for insured registered seat in the Czech seat in the Czech Republic). loans from 6 months to 3 Republic). months and for insured guaranties from 3 months to 1 month provided by the Export Guarantee and Insurance Corporation (EGAP). Tax related  Suspension of obligations of  All tax payers  No application needed.  N/A  The legislation is in effect. measures businesses to electronically including waiver register taxes until the end of of tax penalties 2020. and suspension of  Loss carry back - right of  All tax payers  Tax loss may be applied by  The legislation is in effect. taxes businesses to apply tax loss submitting an additional tax retroactively for 2018, 2019 and return. Further information 2020. can be found here.  Waiver of tax penalties and  Companies affected by the  No application is required.  N/A  The legislation is in effect. suspension of taxes for COVID19 pandemic measures. companies most affected by the COVID19 pandemic measures.

Key Contacts Radek Janeček Danica Šebestová, Partner, Prague Partner Prague T +420 221 662 275 T +420 221 662 263 E [email protected] E danica.sebostova @squirepb.com

5 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU) Financing Facility Support What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

Coronavirus  Initiative proposed by the  The measures are  The eligibility criteria are  The European  Funds available from 1  European Response to addressed to member set out through the Commission has set up February 2020. Commission Investment provide a coordinated approach states. The respective principle pieces of a task force to  The co-legislators communication on the Initiative (CRII) for member states to manage federal or regional legislation (and their coordinate the allocation (Council of the EU and broader coordinated the public health emergency. authorities allocate the proposed amendment by of funds between European Parliament) response for the  A total of €102 billion is funds. Regulation on CRII): member states. This will have approved the COVID-19 outbreak. envisaged:  Particular focus should - Regulation (EU) determine the funding proposal.  European each region will be − €37 billion European be given to: 1301/2013 on the Commission press European Regional receiving to allocate to release on the CRII Structural Investment Fund - Provide support to the businesses in need. (ESIF) healthcare sector Development Fund measures. − €65 billion divided into: (i) - Provide liquidity to - Regulation (EU)  European €7.9 billion from the EU corporates (e.g. 1303/2013, for the Commission Q&A on budget, (ii) €29 billion of SMEs) various EU Structural the CRII+. Funds structural funding across the − Support short time  Regulation (EU) EU and (iii) €28 billion of as of national working - Regulation 508/2014 2020/460 on the yet unallocated structural schemes. on European Maritime Coronavirus funds. and Fisheries Fund. Response Investment  On 2 April 2020, the European  The specific criteria on Initiative published in Commission launched the the allocation of funds to the Official Journal of CRII+, which are a new set of regions are determined the EU on 31 March measures to mobilise support in partnership 2020 and entered into against the COVID-19 outbreak. agreements and force on 1 April 2020; These are flexible measures programs negotiated it is directly applicable that would allow for: between the European to member states. - Transfer possibilities across Commission and the  The initiative was the three cohesion policy respective member supplemented by the funds (the European Regional states. REACT-EU package Development Fund, European  The federal or regional and allocation of Social Fund and Cohesion authorities direct the funds were reinforced Fund) funds to their regions by Cohesion Programs. - Transfers between the according to the needs different categories of regions and based on the criteria determined by each - Flexibility related to the individual partnership thematic concentration of agreement. funds − Simplification of procedural steps linked to programme implementation, use of financial instruments and audit. 6 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

Liquidity  €1 billion available in an EU  Support intended for  The COVID-19 support  By completing a set of  For the InnovFin SME  European Measures for budget guarantee to the small and medium criteria for the InnovFin documents available Guarantee Facility funds Commission SMEs European Investment Fund enterprises defined SME Guarantee Facility here for the InnovFin available from 6 April communication on the (EIF) via the European Fund for under EU are available here. SME Guarantee Facility, 2020 until 31 March broader coordinated Strategic Investments (EFSI). recommendation  The COVID-19 support and another set of 2021. response for the  The EIF will provide liquidity and 2003//361 (further criteria for the COSME documents here for the  For the COSME Loan COVID-19 outbreak. guarantees to banks, mobilising information available Loan Guarantee Facility COSME Loan Guarantee Facility funds  European Investment €8 billion in working capital here) via financial are available here. Guarantee Facility. are available from 6 April Bank press release. financing. intermediaries. 2020 until 31 December  In addition, the European  The funding is eligible 2020. Investment Bank (EIB) under the InnovFin SME  Interested parties should proposed to mobilise another Guarantee Facility apply on the COVID-19 €40 billion of financing divided (research-based and specific funds until 30 into: innovative SMEs and June 2020. small mid-caps in EU - €20 billion of financing member states and  Due to the extension of dedicated guarantee Horizon 2020 Associated the EU’s State Aid schemes to banks based on Countries1) and the Temporary Framework existing programmes for COSME Loan the debt financing terms immediate deployment. Guarantee Facility have been extended to - €10 billion of financing (SMEs in EU member 30 June 2021. dedicated liquidity lines to states and COSME banks to ensure additional Associated countries2), working capital support for both subject to the EIF. SMEs and mid-caps.  Financial, credit - €10 billion support dedicated institutions or loan (debt) asset-backed securities funds are the main (ABS) purchasing targets under the programmes to allow banks to InnovFin SME transfer risk on portfolios of Guarantee Facility. SME loans.  Guarantee schemes, guarantee institutions or other credit financial institutions are the financial intermediaries within the COSME Loan Guarantee Facility. Emergency  The European Commission  Addressed to member  European Commission  Member states to  From 1 February 2020  Amended Budget Support decided to directly support the states' healthcare to manage the funding request funding from the applicable until 31 here. healthcare systems of EU systems. process and set out the European Commission. criteria for funding based Further application

1 https://ec.europa.eu/research/participants/data/ref/h2020/grants_manual/hi/3cpart/h2020-hi-list-ac_en.pdf 2 https://ec.europa.eu/research/participants/data/ref/other_eu_prog/cosme/legal/3rd-country-participation_en.pdf 7 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

Instrument for the member states. The on partnership criteria to be determined January 2022.  Council Regulation healthcare sector Commission will thus mobilise: agreements with by partnership (retroactive application). (EU) 2020/521 to - €3 billion from the EU budget, respective member agreements between a  Council of the EU activate emergency of which €2.7 billion will be states, as laid out in the member state and the approved the proposal support published in channelled through the humanitarian aid European Commission. for a Regulation. the Official Journal of Emergency Support framework (Council the EU. Regulation (EC) Instrument  European 1257/96). - €300 million though the Commission press rescEU medical equipment  Indicative (but non- release. capacity. exhaustive) actions in scope can be found on  These funds are available under ANNEX 1 of the the EU's General Budget. Proposal for a Council  Additional contributions will be Regulation to activate possible from member states emergency support. and also individuals, foundations and even crowd funding. Temporary  State aid (i.e. government  All companies  The relaxation of state  Application for state aid Available from 1  Communication for a Framework for support that gives a company a requesting state aid from aid rules is available for: ordinarily follows the February 2020 until 31 Temporary State Aid competitive advantage over their governments. - Direct grants, broader state aid December 2021. Framework for State other companies) is prohibited,  Amongst others: selective tax procedures under Article For the recapitalisation Aid measures. unless there are justified 107 of the Treaty of - Three French support advantages and measures introduced in  European reasons of general economic advance payments – Functioning of the EU. the amended Temporary Commission press development. schemes related to commercial loans and Member states can  There is, however, a Framework; the measure release.  The European Commission credit lines (here) set up schemes to much faster procedure of was available until 30 adopted a State Aid Temporary grant up to €800,000 approval under these September 2021.  Communication for an Framework which provides - Danish guarantee to a company in order flexible rules: amendment of the scheme for SMEs to address urgent Temporary flexibility to the existing state aid - Member state submits rules. A template for the (here) liquidity needs Framework for State a state aid scheme Aid measures. notification of measures that will - German loan - State guarantees for based on the template compensate companies that programs within loans taken by of notification of  European have suffered damages. promotional bank companies from banks measures Commission press (here) - Member states can release on amended  On 8 May, the European  European Commission provide guarantees to Temporary Commission adopted an - Italian support scheme will respond within days ensure banks keep Framework. amendment to the Temporary for supply of medical (thus far it has been 48 providing loans to Framework, which extends the devices and PPE hours upon receipt)  Communication for a scope of state aid schemes (here) customers who need third amendment on flexibility to recapitalisation aid them the Temporary to non-financial companies and - Subsidized public Framework for State subordinated debt aid to loans to companies - Aid measures. companies. Certain conditions Member states can  European have been introduced, namely: grant loans with Commission press 8 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available? - The necessity, favourable interest release on third appropriateness and size of rates to companies to amendment to the intervention cover immediate Temporary - The state's entry in the capital working capital and Framework. of companies and investment needs  European remuneration - Safeguards for banks Commission press - The exit of the state from the that channel state aid release to prolong capital of the companies to the real economy - Temporary concerned Some member states Framework. plan to build on banks'  European - Governance conditions: existing lending Commission beneficiaries are banned from capacities, and use dedicated site and dividends and share them as a channel for Coronavirus website. buybacks support to businesses, - Prohibition of cross- particularly SMEs; the  Consolidated version subsidisation and acquisition communication of Temporary ban. clarifies that such aid Framework for State Aid.  Amendments to the Temporary is considered as direct Framework have been adopted aid to the banks' throughout 2020. The latest customers, not to the amendment banks themselves, and gives guidance on  Prolongs the State Aid how to ensure minimal Temporary Framework until 31 distortion of December 2021. competition between banks - Short-term export credit insurance − Designation of countries as "not- marketable risks"3, enabling short-term export credit insurance to be provided by the state. - Recapitalisation and subordinated debt measures – based on

3 As marketable risks can be temporarily unavailable due to the current crisis, member states may use the exemption for non-marketable risks of paragraph 18 (d) of the Communication from the Commission on short- term export-credit insurance: "if the Commission, after having received a notification from a Member State, decides that due to a shortage of export-credit insurance, certain risks are temporarily non-marketable for exporters in the notifying Member State." A marketable risk as defined under the communication is "commercial and political risks with a maximum risk period of less than two years, on public and non-public buyers of all Member States, Australia, , Iceland, Japan, New Zealand, , , of America." 9 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available? conditions laid out on the first column. Coronavirus  The European Commission  Addressed to European  No specific criteria.  N/A  Co-legislators approves  European Banking Package announced on 28 April COVID- banks and credit Flexibility measures are the amended legislative Commission Press 19 banking package aiming to institutions applicable through the proposals. Release provide flexibility in bank lending crisis.  Entry into effect on 27  Regulation (EU) to businesses and households June 2020. 2020/873 was throughout the EU.  However, provisions published in the  The package consists of a regarding exposures Official Journal of the proposal for a regulation, which excluded from the total EU on 26 June 2020 provides adjustments to exposure measure will and entered into force maximise the capacity of credit apply from 28 June on 27 June 2020. institutions to lend and to absorb 2021. losses linked to the COVID-19 and an interpretative Communication explaining the proposed to the EU's accounting and prudential frameworks. Support to  Temporary measure introduced  Addressed to member  This fund will be based  Member state submits a  Funds available from 1  European mitigate in response to the COVID-19 states to focus on short- on a system of voluntary request to the European February 2020 Commission Press Unemployment crisis by the European term work schemes for guarantees from Commission together (retroactive application) Release. Risks in an Commission. The temporary employees or similar member states. Thus, a with appropriate and shall be available  Regulation (EU) measures for the self- minimum amount of evidence of the need to until 31 December 2022 Emergency fund would provide: 2020/672 on the employed. committed guarantees access funds. unless otherwise agreed (SURE) - Up to €100 billion will provide establishment of a loans granted on favourable will be needed (25%).  The member state can, by an amendment of the European instrument terms from the EU to member  Funds to be given to upon receipt of the regulation. for temporary support states member states to funds, allocate them  The Finance Ministers to mitigate  Up to €25 billion of guarantees complement national accordingly. approved this proposal unemployment risks in voluntarily committed by measures to mitigate the on 9 April, within a an emergency member states to the EU budget direct economic and broader financial (SURE) was to leverage the financial power negative social effects emergency fund. published in the of SURE. due to the COVID-19  The proposal for a Official Journal of the crisis. regulation was also EU and entered into approved on 23 April by force on 20 May the EU27 heads of state. 2020. • Finance ministers of the • Addressed to member • On the SURE package, • On the SURE package, • On the SURE package,  More information on Financial Eurogroup (i.e. the 19 states and businesses. see description above. see description above. see description above. the broader support Emergency Fund countries), together with the • On the SURE package, • On the businesses loans • On the businesses loans • On the businesses, the package is available non- countries, agreed on 9 see description above. from the EIB, the from the EIB, the loans by the EIB, these here. April 2020 a financial eligibility criteria will be application process will will be available, once  More information on emergency fund of €540 billion. • Regarding businesses, the European member states have the business lending 10 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

• The support package focuses Investment Bank (EIB) determined by the EIB's be determined by the made the necessary fund, is available on three areas: established a €25 billion PPF. EIB's PPF. commitment to account here. ‒ National un-employment guarantee fund, which  Regarding the member  Concerning the ESM for at least 60% of the  More information on schemes (SURE package aims to deliver the €200 state support, when a Pandemic Crisis Support EIB's capital. A€25 the ESM role for the described above) worth of billion for the European country requests to Mechanism, a country billion guarantee fund is Pandemic Crisis €100 billion economy. access the ESM would request access already announced in Support Mechanism ‒ For businesses, the European • The guarantee fund will Pandemic Crisis Support the funds. this context. can be found here. Investment Bank will provide be part of the EIB's Mechanism, it has to be • The EU27 heads of state €200 billion business lending structure of Partnership unanimously approved approved the financial to support businesses across Platform for Funds by the ESM Board of package on 23 April Europe (PPF). Governors (19 euro 2020. It became  Lastly, for member states, a finance ministers). effective on 1 June Pandemic Crisis Support 2020. Mechanism under the European • The credit line for 4 Stability Mechanism (ESM) will accessing funds is be established, which would available until the end of amount to about 2% of member 2022. states' GDP, aiming to assist European economies to access financial assistance of close to €240 billion with standardized terms. Next Generation The €750 billion recovery  Addressed to Member  Criteria to be determined  Application for funding is • The EU multiannual  The 27 May European EU Recovery instrument, entitled the Next States. in each individual determined in each budget for 2021-2027 Commission package was published in the Instrument Generation EU Instrument  However, many of the proposed measure individual proposed of proposals include: embedded within a €1.8 trillion funds will be channelled and/or EU funding measure and/or EU Official Journal of the (i) a Communication revamped EU budget plans to through existing EU program. funding program. EU on 22 December outlining the EC's raise and invest money based instruments and funding  Funding through the 2020, an important Next Generation EU on the Commission's policy programs, many Recovery and Resilience step for the release of Recovery Instrument ambitions. measures of the Facility will abide by the the funding towards Plan with a Staff the recovery of the  The funds for the NGEU Recovery and Resilience procedures outlined in Working Document Instrument will be borrowed by Facility embedded in the the Regulation, still EU's economy. and (ii) a the European Commission on Next Generation EU expected to be formally • Co-legislators Communication the capital markets. Out of this, Instrument would be published in the Official endorsed the final outlining the €360 billion will be loans to beneficial also for Journal of the EU. version of the revamped EU Budget Member States and €390 billion businesses who would Recovery and for the Recovery Plan will be grants. apply for funding through Resilience Facility and its Annex. The Regulation, one of the measures were  The funds of the NGEU will be national programs. principal components accompanied by new disbursed to Member States via  Member States would of the Next or amended the EU's existing instruments prepare national Generation EU legislative proposals, and programs. The borrowing recovery and resilience Instrument. accessible here.

4 The ESM is an intergovernmental organization providing financial assistance to Eurozone countries when experiencing financing problems. 11 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

activity will last until the end of plans setting out a  Regulation (EU) 2026 and the repayment would coherent package of 2021/241 on the be scheduled until the end of measures to implement Recovery and 2058. reforms and public Resilience Facility, The money raised for the NGEU investment projects was published in the Instrument will be invested across addressing the Official Journal of the three pillars: challenges and priorities EU and entered into towards their green and force on 19 February  Supporting Member States with digital transitions. 2021. investments and reforms (ii) rebooting the EU economy by  Member States incentivizing private gradually submitted investments, and (iii) addressing their national the lessons of the crisis and Recovery and preparing for future crises. Resilience Plans to the European  In more detail, the funding of the Commission to NGEU funding through the receive grants or following instruments: loans out of the  A 'Recovery and Resilience Recovery and Facility' of €672.5 billion aiming Resilience Facility. to support investments and  Following the review reforms (incl. in green and of the by the digital transitions) and to European strengthen the resilience of Commission, Council national economies. This will be Recommendations a grant-based facility of €312.5 endorsing the billion and of loans to €360 National Recovery billion; and Resilience Plans  The 'REACT-EU' will provide have been carried out additional €47.5 billion to the for , Belgium, current cohesion policy , France, programmes between now and Germany, Greece, 2022; Italy, Latvia,  Additional €10 billion to the Just Luxembourg, Transition Fund, to assist the Portugal, Slovakia faster transition of Member and Spain on 13 July, States towards climate followed by , neutrality; Cyprus, Lithuania and on 26 July  Additional €7.5 billion to 2021. reinforce the 'European Agricultural Fund for Rural Development' to support rural areas.

12 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

 Upgrading the 'InvestEU', with an additional €5.6 billion to mobilise private investment in projects across the EU;  Reinforcing the EU's Civil Protection Mechanism, 'rescEU' with an additional €9.2 billion; and  Increasing the EU's Research & Innovation program, 'Horizon Europe' with an additional €5 billion bringing the total budget to €80.9 billion. Pandemic  €750 billion stimulus package  Available to the  The PEPP enables the  No application required  Purchases will be  The information on Emergency announced by the European 's Central Eurosystem central by companies - conducted until the end the ECB's response is Purchase Central Bank (ECB) to buy Banks. banks to purchase5: purchases will be carried of 2020. available here. Programme government and corporate  This will include all the − Eligible marketable out flexibly to achieve  The European Central bonds to assist sovereign debt monetary policy (PEPP) asset categories eligible debt securities Bank's Decision is markets. objectives. under the existing asset − Eligible corporate available here. purchase programme bonds and other (APP) currently marketable debt supporting Central instruments Banks. − Eligible covered bonds  Eligible asset-backed securities. Financial Aid  Financial assistance under the  Available to countries  A country is eligible if  Application criteria for  Funds available from 1 • European under the European Union Solidarity Fund negotiating their major natural disasters countries to apply for the February 2020, (funds Commission press European Union (major public health emergency) accession to the EU to are striking its regions. European Union can be applied release. Solidarity Fund to assist countries negotiating assist with public health  In particular the Solidarity Fund can be retroactively). • Regulation (EU) their accession to the EU. systems and socio- Regulation (EU) found on the website.  The European 2020/461on the  Immediate financial assistance economic recovery. 2020/461 extends the  Applications need to be Commission would Financial Aid for up to €38 million announced for  Respective countries to legislation to "major submitted to the accept applications countries negotiating the Western Balkans' public decide on allocation of public health European Commission under the European accession to the EU health systems to tackle the funds. emergency".7 within 12 weeks of the Solidarity Fund until 24 published in the health emergency caused by date of the first official June 2020. Official Journal of the COVID-19 and reallocation of EU on 31 March 2020 €374 million to help the socio- and entered into force

5 The eligibility of the marketable assets listed are financial instruments that are admitted to trading on a market and that fulfil the eligibility criteria laid down in Part Four of the ECB's Guidelines (ECB/2014/60) on the implementation of the Eurosystem monetary policy framework. 7 Defined as "any life-threatening or otherwise serious hazard to health of biological origin in an eligible State seriously affecting human health and requiring decisive action to contain further spreading resulting in a public financial burden inflicted on the eligible State for emergency response measures estimated at over EUR 1 500 000 000 in 2011 prices, or more than 0.3% of its GNI." 13 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

economic recovery6 of the  Respective country's action against the  Co-legislators (Council on 1 April 2020; it is region. authority to decide how emergency. of the EU and European directly applicable to  The public health need is to allocate funds. Parliament approved the member states. divided between: legislation. - Albania and North Macedonia − up to €4 million each - − €7 million - − up to €3 million - − up to €5 million - − up to €15 million. Team Europe • As part of the EU's global • The following territories • The EU would provide N/A  Financial support funds  European Package response to the COVID-19 can access the financial humanitarian and are available Commission Press outbreak in coordination with the support funds, which will financial support in line  The MFA proposal for Release on the Team United Nations, the G7 and the be attributed as follows: with the approach neighbouring countries Europe proposals. G20, it released financial ‒ €3.25 billion to Africa agreed at the G20 and has been adopted by the  European support to address immediate ‒ €1.19 billion to promoted by the UN. co-legislators. Commission Press health crisis and measures to Northern African  The funds of the MFA Release on the MFA mitigate the socioeconomic neighbourhood will be available for 12 proposals. impact of EU's partner countries countries months.  Decision 2020/701 to (e.g. countries in Western €1.42 billion in ‒ provide macro- Balkans, Africa, Middle East, guarantees for Africa financial assistance to Latin America, etc.). and the neighbouring The Joint Communication neighbourhood • countries was introduces various actions to countries published in the that effect. Underpinning these €2.1 billion for the ‒ Official Journal of the actions is a financial support of Southern EU and it entered into more than €15.6 billion from Neighbourhood8 force on 28 May existing external action ‒ €962 million for 2020. resources. the Eastern Partner 9 • The European Investment Bank countries already contributed €5.2 billion ‒ €800 million for as part of this project. the Western Balkans10 and An additional €3 billion in • ‒ €1.22 billion to support emergency funds has been Asia and the Pacific announced to provide macro-

6 €46.7 million to Albania, €73.5 million to Bosnia and Herzegovina, €50 million for Montenegro, €62 million to North Macedonia, €78.4 million to Serbia and €63 million to Kosovo. 8 This includes Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia. 9 This includes Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. 10 This includes Bosnia and Herzegovina, Montenegro, Albania, Serbia, Kosovo and North Macedonia. 14 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

financial assistance (MFA) to 10 ‒ €291 million to the enlargement and Caribbean and Pacific neighbourhood partners to help region them support citizens and ‒ €918 million to Latin businesses from the economic America and the fallout of the COVID-19 Caribbean pandemic. The MFA will be ‒ €111 million to available in the form of loans of overseas countries highly favourable terms. and territories. • The MFA will be attributed as follows: ‒ €180 million to Albania ‒ €250 million to Bosnia and Herzegovina ‒ €150 million to Georgia ‒ €200 million to Jordan ‒ €100 million to Kosovo ‒ €100 million to Moldova ‒ €60 million to Montenegro ‒ €160 million to North Macedonia ‒ €600 million to Tunisia ‒ €1.2 billion to Ukraine Coronavirus • The European Commission led • Recipients of funds can • Organisations within or • Through reaching out to • Funding available.  European Global Response a Coronavirus Global Response include public sector (to supporting the three the co-convenor of one Commission Press pledging event on 4 May 2020, attribute to research partnerships: (i) of the three partnerships. Release where it gathered €15.9 billion funding), industry, vaccines, (ii) • Some of the funds will  Further information from donors worldwide. researchers and any therapeutics or (iii) be attributed to funding can be found on the other organisation diagnostics. • The Coronavirus Global programs (e.g. EU's European involved in the Horizon Europe) where Commission Response Initiative is comprised partnerships for research of three partnerships towards specific grants will be dedicated website. and developments as applicable. establishing universal well as deployment of diagnostics, treatments and the three key priorities: vaccines against COVID-19. (i) vaccines, (ii)

15 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 European Union (EU)

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance Relevant links available? eligible? any) for applying? be available?

• Each partnership will include therapeutics and (iii) relevant actors, such as public diagnostics. sector, industry, research, funders, regulators or international organisations, which jointly will develop actions to cope with COVID-19. • The pledging resources, which will be managed by the European Commission, can have the form of cash contributions, indirect grants or guarantees for investments (loan or equity).

Key Contacts Wolfgang A. Maschek Christina Economides Partner, Brussels Public Policy Advisor, Brussels T +322 627 11 04 T +322 627 11 05 E [email protected] E [email protected]

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Financing Facility Support What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

Exceptional state  The state has provided a guarantee • It is available to all legal entities The loan must: • The guarantees will be • The scheme is guarantee of €300 of up to €300 billion (in principal, and physical persons having an • Provide a minimum grace period of 12 issued and managed by available since 16 billion for loans to interest and ancillary costs including economic activity and months and an option for the borrower at Bpifrance Financement March 2020. businesses ("Prêt guarantee fees) for all new loans registered with the SIRENE. the end of this period to amortise it for an SA on behalf of the granted by credit establishments and government. garanti par l'Etat") It is not available, however, to: additional period of up to five years (with financing entities or via crowdfunding possible exceptions for companies with a • In most cases, the More information intermediaries (crowd lending) o Businesses subject to insolvency proceedings as large number of employees (5000 or more) guarantee is granted can be found here. between 16 March 2020 and 31 or turnover (greater than 1.5 billion)). automatically, once December 2021. at 31 December 2019 (unless a recovery or • Be unsecured (with some exceptions for notified to Bpifrance.  The guarantee can cover several safeguard plan is in place large companies. • For large companies, loans to the same borrower, in which prior to the granting of the (i.e. companies case it will enter into force in • Eligibility to the guarantee is subject to the loan) aggregate loans and other credit facilities employing 5000 chronological order. o Credit establishments granted earlier to the borrower not having persons or more or with a turnover greater than o Financing entities fallen below their level as of 16 March 2020 if the loan was granted before 1 January 1.5 billion) a case-by- o Real estate civil companies 2021 or as of 31 December 2020 if the loan case review will be (with a number of is granted from 1 January 2021 onwards performed by the exceptions, in particular with (not taking into account scheduled Minister of Economy. respect to real estate civil repayments under such loans/facilities). companies set up for development programs or • The guarantee fee payable, which varies real estate civil companies at according to the (ultimate) length of the least 95% owned by real loan, the number of employees and the size estate collective investment of the business: schemes (OPCIs), real  For businesses (i) employing more than estate investment 250 persons or (ii) with a turnover of more companies (SCPIs), than €50 million and a balance sheet professional real estate greater than €43 million: collective investment ‒ 0.50% for the first year schemes (OPPCIs) or listed real estate investment ‒ 1% for the two following years companies (SIICs)) ‒ 2% for the next three following years • There is a limit to the amount of  For other businesses (with possible the aggregate loans that can be exceptions for large companies): granted, depending on the date ‒ 0.25% for the first year of the creation of the borrower (before or after 1 January ‒ 0.50% for the two following years 2019): ‒ 1% for the next three following years ‒ For companies created as  A period of two months must lapse before a from 2019, the maximum call under the guarantee (with possible amount corresponds to the 17 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

estimated employment costs exceptions when the State guarantee is for the first two years or, if authorised by a decision of the European more favourable, 25% of Commission). their 2019 turnover.  The guarantee will only cover part of the ‒ For companies created loan: before 2019, the maximum ‒ 90% for businesses that employ less than amount corresponds to 25% 5,000 persons and have a turnover of of their turnover for the year less than €1.5 billion 2019 save for specific businesses: ‒ 80% for businesses with a turnover greater than €1.5 billion but less than €5 ‒ Innovative businesses billion (complying with certain criteria) benefit from a ‒ 70% for others (with possible exceptions maximum, if more for large companies). favourable, set at twice the  Companies requesting a guaranteed loan amount of employment must not: costs borne in 2019. ‒ For companies registered, ‒ pay dividends for the year in which the at the date of the grant of loan is granted to their shareholders in loan, under a French France or abroad industry classification ‒ proceed with share buybacks during the (NAF) code and carrying year in which the loan is granted. out one of the activities listed in the relevant order ‒ have their headquarters or a subsidiary (e.g. travel, restaurant, without economic substance in a State or libraries, museums, non-cooperative territory in tax matters lodging), the maximum ‒ This commitment is applicable as of amount corresponds to the March 27, 2020. three best months of turnover for the year 2019 or of the last available year. ‒ For companies that sell parts intended for the manufacture of aircraft or of major equipment mounted on aircraft, thereby generating at least 15% of their turnover of the last financial year, the 25% threshold is increased by an amount corresponding to the value of 2 years of stock (the higher value between twice the 2019 stock or 18 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

twice the average of the 2018 and 2019 stocks) ‒ For companies that acquire parts from the companies hereinabove, the 25% threshold is increased by an amount corresponding to the value of the stock they intend to purchase from them until 31 December 2021. • For loans granted to companies with more than 4,999 employees or with a turnover of €1.5 billion or more (both criteria as at 16 March 2020), the decision will be taken on a case-by-case basis. Exceptional state  The state has provided to credit ‒ The assignor must be a • The assigned receivables must have arisen • The guarantee is • The scheme is guarantee for institutions and financing companies legal entity or a natural under confirmed orders automatically granted available since 1st funding operations (sociétés de financement) a person acting in the • The receivables must be assigned no longer after notification to August 2020. by way of guarantee for funding operations by course of its/ his than 30 days after the issue of the Bpifrance, subject to its way of assignment of receivables professional activity that is being compliant with assignment of corresponding orders and in any case no entered into between 1 August 2020 not: later than 31 December 2021 the criteria hereof (non receivables – and 31 December 2021. The ceiling exhaustive). Factoring ("Garantie ‒ a credit institution or a • The funding operations must be free from of the guarantee equals to: financing company • If the funding exceeds aux operations de any other security interests than the state ‒ 12 months of cash flow needs if (société de financement) €300 million, the financement par voie guarantee the company has more than 250 ‒ subject to insolvency assignee shall send de cession de employees or has a turnover • The anticipated deadline of such funding the project of the proceedings (en operations cannot be later than 30 June créances exceeding €50 million and a liquidation judiciaire ou en factoring agreement to professionnelles") balance sheet total exceeding €43 2022 and cannot be later than 60 days after the Treasury (Trésor) at période d'observation the latest of the dates initially planned for million; d'une sauvegarde ou least 5 days before the issue of the invoices relating to the signing. ‒ 18 months of cash flow needs redressement judiciaire) assigned receivables (provided such date is otherwise. as at 31 December 2019 known by the assignee). (unless a recovery or safeguard plan is in place • The guarantee shall be called no later than prior to the granting of the 30 September 2022. loan) • The guarantee fee payable, which varies • The assignee must be a credit according to the (ultimate) length of the institution or a financing funding operation, the number of employees company (société de and the size of the business: financement) ‒ For businesses (i) employing more than 250 persons or (ii) with a turnover of more than €50 million and a balance sheet greater than €43 million: 19 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

‒ 0.50% ‒ For other businesses: ‒ 0.25% • The guarantee will only cover part of the loan: ‒ 90% for businesses that employ less than 5,000 persons and have a turnover of less than €1.5 billion ‒ 80% for businesses with a turnover greater than €1.5 billion but less than €5 billion ‒ 70% for others. State-guaranteed  The State has provided a guarantee • It is available to small and • The AIF's purpose must be to invest • The AIF shall file an • Already effective equity loans and to alternative investment funds medium-size enterprises exclusively in either equity loans or application with the subordinated bonds (fonds d'investissement alternatif) (SMEs) and intermediate-sized subordinated bonds (non-cumulative). Directorate General of (prêts participatifs et (AIF) investing either in equity loans enterprises (ETIs) (between 10 • The equity loans or the subordinated bond the Treasury (Direction granted to SMEs and ETIs by credit and 4999 employees and a Générale du Trésor). obligations issue must provide for a minimum grace establishments and financing entities turnover not exceeding €1.5 subordonnées period of at least 4 years. • The guarantee is or in subordinated bonds issued by billion or a balance sheet not granted by the Minister garantis par l'Etat) SMEs and ETIs between 1 January exceeding €2 billion) registered • The equity loans/subordinated bonds must have a maturity of 8 years. of Economy upon 2021 and 30 June 2022. with the SIRENE which: signature of an ‒ had a turnover for the year • The borrower/issuer must allocate the sums agreement between the 2019 of at least €2 million; borrowed in accordance with a business French State and the plan or an investment plan. ‒ have the capacity to meet AIF. their financial commitments • The borrower/issuer must not use the sums • (such capacity being borrowed to pay debts existing at the date assessed by a credit rating of granting/issuing of the equity and financial indicators loans/subordinated bonds. defined in the guarantee • Without prejudice to the mobilisation of debt agreement between the related to equity loans within the framework French State and the AIF). of the monetary policy operations of the • It is not available, however, to: European System of Central Banks (ESCB), the credit establishment or the financing ‒ real estate civil companies, entity which granted the equity loan or any credit establishments or entity belonging to the same group as that financing entities; credit establishment or financing entity must ‒ businesses subject to retain a credit exposure to the borrower of insolvency proceedings as at at least 10% of that equity loan. 31 December 2019 (unless a • The management company of the AIF, or its recovery or safeguard plan is delegates, or another investment fund in place prior to the granting managed by that management company or of the equity loan or the its delegates must retain a credit exposure issue of the subordinated to the issuer of at least 10% of the bonds). 20 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

‒ companies that have already subordinated bonds which will not be benefited from State aid covered by the state guarantee. measures authorised under • In case of liquidation (whether amicable or section 3.11 of the European judicial) or sale of the business ordered Commission's during a recovery procedure, the Communication on the subordinated bonds will only be redeemed Temporary Framework for after all other preferred or unsecured State aid measures to creditors have been paid in full. support the economy in the current COVID-19 outbreak. • In case of a recovery (plan de redressement) or safeguard plan (plan de • The maximum amount of the sauvegarde) of the issuer, the redemption of equity loans and the the subordinated bonds will be suspended subordinated bonds granted to for the duration of the plan. or issued by the same borrower/issuer varies • The guarantee will only cover 30% of the according to the size and the outstanding principal amount of the equity date of creation of the latter: loans/subordinated bonds in which the AIF has invested. ‒ For SMEs (between 10 and 249 employees and a • The guarantee fee which is due annually by turnover not exceeding €50 the AIF varies according to the size of the million or a balance sheet borrower/issuer: total not exceeding €43 ‒ 0,9% of the outstanding principal amount million): of the equity loans/subordinated bonds ‒ 12,5% of their turnover for granted to or issued by SMEs; the year 2019; ‒ 1,8% of the outstanding principal amount ‒ Innovative businesses of the equity loans/subordinated bonds (complying with certain granted to or issued by ETIs. criteria) or companies • created after 1 January 2019 benefit from a maximum, if more favourable, set at the amount of the employment costs borne in 2019; ‒ For ETIs (between 250 and 4999 employees and a turnover not exceeding €1.5 billion or a balance sheet not exceeding €2 billion): ‒ 8,4% of their turnover for the year 2019; ‒ Innovative businesses (complying with certain criteria) or companies created after 1 January 21 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

2019 benefit from a maximum, if more favourable, set at the amount of two-thirds of the employment costs borne in 2019. ‒ Borrowers/issuers who have already benefited from state- guaranteed loans (prêts garantis par l'Etat) whose outstanding principal amount cumulated with the amount of the equity loans/subordinated bonds represents more than 25% of their turnover for the year 2019 (or for the innovative companies, more than twice the amount of employment costs borne in 2019) must comply with additional criteria: their debt-to-equity ratio is less than 5 (with state-guaranteed equity loans and subordinated bonds being included in the debt); ‒ the total amount of state-guaranteed equity loans and subordinated bonds does not exceed half of the borrower/issuer's equity; ‒ at least one of the following criteria is met: ‒ the 2020 turnover is more than 5% lower than the 2019 turnover; ‒ the employment costs borne in 2020 after deduction of the partial activity, are more than 5% lower than the employment costs borne in 2020;

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‒ the total amount of investments made in 2020 is more than 10% lower than in 2019; ‒ the subcontracting expenses in 2020 are more than 10% lower than in 2019; ‒ the amount of orders booked and undelivered at 31 December 2020 is more than 10% lower than at 31 December 2019. • For those borrowers/issuers who have already benefited from state-guaranteed loans (prêts garantis par l'Etat) whose outstanding principal amount cumulated with the amount of the equity loans/subordinated bonds represents more than 25% of their turnover for the year 2019 (or for the innovative companies, more than twice the amount of employment costs borne in 2019), the maximum amount of the equity loans or of the subordinated bonds granted to or issued by a same borrower/issuer is as follows: ‒ For SMEs: ‒ 10% of their turnover for the year 2019; ‒ Innovative businesses (complying with certain criteria) or companies created after 1 January 2019 benefit from a maximum, if more favourable, set at the amount of 80% of the employment costs borne in 2019; ‒ For ETIs:

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‒ 5% of their turnover for the year 2019; ‒ Innovative businesses (complying with certain criteria) or companies created after 1 January 2019 benefit from a maximum, if more favourable, set at the amount of 40% of the employment costs borne in 2019. State equity loans  Until 31 December 2021, the State is • It is available to very small size • Equity loans provide for a grace period of 12 • By application to the • Already effective. (prêts participatifs) entitled to grant equity loans (prêts entities and small size entities months and must be repaid within 7 years at CODEFI (departmental for very small and participatifs) to very small and small (less than 50 employees) the latest. committee for the small enterprises enterprises which have not having an economic activity • The rate of interest applicable to equity examination of benefitted from a State guaranteed and registered with the SIRENE loans is at least 3.5% per annum business financing loan or for which the amount of such which: problems). Applicants loan was insufficient. ‒ Have been refused a State- shall receive an answer guaranteed loan (including no later than 15 days after a mediation process) or after the application. have been granted such a • The decision to grant loan but for an insufficient the loan will be taken amount; by the Minister of ‒ Evidence real prospects for Economy after operational recovery; or receiving the opinion of the CODEFI. ‒ Are up to date with their social security and tax • Equity loans will be obligations or as relevant granted and managed have obtained a tax and by Bpifrance social security liabilities Financement SA on clearance plan. behalf of the State. • It is not available, however, to: ‒ Businesses subject to insolvency proceedings as at 31 December 2019 (unless a recovery or safeguard plan is in place prior to the granting of the loan); ‒ Real estate civil companies; • The maximum amount of the equity loan varies according to the business sector:

24 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

‒ €20,000 for enterprises active in the agricultural sector; ‒ €30,000 for enterprises active in the fisheries or aquaculture sector; or ‒ €100,000 for the other enterprises. Repayable advances  Until 31 December 2021, the State • Small-size entities, medium-  Subsidised loans may be used only to  By application to the • The scheme is and subsidised is entitled to grant repayable size entities and intermediate- finance investments and working capital CODEFI (departmental available since 13 loans to small and advances and subsidised loans for sized companies (ETIs) requirements. committee for the June 2020. (between 10 and 4999 medium enterprises an aggregate amount of €500 million  Repayable advances must be repaid within examination of to SMEs which have not benefited employees and a turnover not business financing (SMEs) ("Prêts à 10 years at the latest and the maximum from a State-guaranteed loan or for exceeding €1.5 billion or a grace period is 3 years. problems). The taux bonifié" and which the amount of such loan was balance sheet not exceeding €2 decision will be taken "avances insufficient. billion) which:  Subsidised loans must be repaid within 6 on a case-by-case years at the latest and the maximum grace remboursables") have been refused a basis by the Minister of  The financial support will be in the ‒ period is 12 months. form of a repayable advance (up to State-guaranteed loan Economy, after the limit of €800,000) or a subsidised (including after a mediation • The rate of interest applicable to repayable obtaining the opinion of loan. process) advances is 1% per annum. The rate of the CODEFI. interest applicable to subsidised loans evidence real prospects for  The repayable ‒ varies according to the (ultimate) length of operational recovery advances and the loan: subsidised loans will be ‒ were not subject to ‒ 1,5% p.a. for loans for 3-year loans granted and managed insolvency proceedings as at by Bpifrance ‒ 1,75% p.a. for loans for 4-year loans 31 December 2019 (unless a Financement SA on recovery or safeguard plan is ‒ 2% p.a. for loans for 5-year loans behalf of the State. in place prior to the granting ‒ 2,25% p.a. for loans for 6-year loans of the loan) • There is a limit to the amount of the financial support that can be granted, depending on the date of the creation of the borrower (before or after 1 January 2019): ‒ For companies created before 2019, the maximum amount corresponds to 25% of their turnover for the year 2019. Innovative businesses (complying with certain criteria) benefit from a maximum, if more favourable, set at twice the

25 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

amount of employment costs borne in 2019 ‒ For companies created from 2019 onwards, the maximum amount corresponds to the estimated employment costs for the first two years ‒ For companies operating in specific economic sectors (such as, among others, fishing, restaurant industry, movie industry, beverage industry, etc), that were not, in particular, subject to liquidation proceedings (liquidation judiciaire) as at 1 March 2020 and that suffered a loss of turnover of at least 50% in 2020; the limit can be increased under certain conditions, up to €800,000. Public reinsurance  Government support of credit  Small-size entities and • Only applies until 31 December 2021. • Already effective. of insurance cover insurance to protect inter-company medium-size entities ("Réassurance credit. publique des risques  The Caisse centrale de réassurance d'assurance credit") will implement a reinsurance mechanism up to an amount of €10 billion. Public reinsurance  To enable French exporting  Exports to EU countries and  Maximum amount of scheme is €5 billion. • Already effective. mechanism for companies to continue to use credit high-income OECD countries short-term insurance to secure international are now eligible. outstanding export operations, the public reinsurance mechanism Cap Francexport will be credit insurance extended. Aid to very small  Payment by a solidarity fund – until  Small companies, freelancers, General conditions:  The company can go to • Already effective. enterprises (VSEs) 31 December 2020: Compensation micro-entrepreneurs and liberal  Operated since before 1 February 2020. a platform open by the of the loss of revenue between professions located in curfew region in which it and independent  Have not initiated insolvency proceedings workers funds €1,500 (3,000 in Mayotte and French zones or belonging to the operates Guiana) and 10,000. sectors most affected by the before 1 March 2020. (https://cfspart.impots.g ("Fonds de crisis (culture, tourism,  Make less than €1 million in turnover. ouv.fr/). This solidarité") commerce...). assistance, instructed  Have a taxable annual profit of less than by the Regions, can €60,000. only be requested  Have less than 50 employees. 26 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

More information  Not be part of a group of companies that once. The aid will be can be found here, would globally exceed the above thresholds. paid by the DGFiP. here and here. For the companies located in curfew zones (aid up to €1,500):  Have experienced a loss of turnover of 50% during the curfew. For the companies hotels, restaurants, cafés, tourism, events, sports, culture (aid up to €10,000):  Have experienced a loss of turnover of 50% during the curfew. Aid to very small  Deferred payment of water, gas and  Businesses and self-employed See previous column.  Businesses • Already effective enterprises (VSEs) electricity bills. The deferred individuals satisfying the encountering difficulties and independent payments will be spread evenly solidarity fund eligibility paying their water, gas workers across the payment due dates for conditions (see the previous and electricity bills can bills issued after the last day of the point). immediately email or ("Remise d'impôts month following the date of the end  Businesses continuing to phone their water, gas directes, report du of the state of health emergency. operate through insolvency, and electricity suppliers paiement des loyers Payments will be spread over a court-ordered recovery or to request an amicable et factures") minimum period of six months. liquidation proceedings, deferral of payment.  With respect to commercial rent ; following receipt of a certificate Businesses confirm that prohibition to apply of financial from one of the receivers they satisfy the More information penalties, damages, execution of an appointed by the court that eligibility conditions can be found here avoidance clause or penalty clause, initiated the proceedings. when they make the deferral request. and here. or activation of guarantees or deposits for failure to pay rent or  For the rent of related service charges on these commercial premises, professional and commercial on 20 March, the main premises. This prohibition applies to federations of landlords rent and service charges due for called their landlord payment from 12 March 2020 to two members to suspend months after the date of the end of rent for the April the state of health emergency. deadline and for the subsequent periods of cessation of activity imposed by the decree. With respect to retail outlets in shopping centres, the National Council of Shopping Centres (CNCC) has already asked its landlord members to make rent and service charges invoiced for the 27 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

second quarter payable monthly and to temporarily suspend payment due on rent and service charges for the month of April.  The same commitment is expected from banks and insurance companies that own business premises used by SMEs. The members of the French Insurance Federation (FFA), in particular, have committed to defer the payment of rent for SMEs and VSBs in sectors where business has been interrupted in accordance with the order of 15 March 2020. There is no commitment from private landlords. Aid in the catering,  The payments by the solidarity fund  For the solidarity fund business  For exemption of social security  For the exemption of • Already effective. tourism, events, (see above) are maintained until in catering, tourism, events, contribution. It will automatically apply to social security sport and culture December 2020 and the additional sport and culture sectors with VSE and SME businesses, whether or not contributions for SME sectors aid may be up to €10,000. up to 20 employees and €2 they have already paid their dues. and VSE. It will  An exemption from social security million in turnover.  In addition, intermediate-sized companies automatically apply to contributions during the mandatory  For the exemption of social (ETIs) and large companies in these sectors all of these businesses, closure period, from March to June security contributions VSE and which do not benefit from automatic whether or not they or any longer time imposed by the SME. exemption will be able to obtain long have already paid their More information dues. regulation. Or deferred payment and  For long spreads of deferred spreads of deferred social and tax charges can be found here. For, ETIs and large debt cancellation. social and tax charges and, on a case-by-case basis, request debt companies to be  In addition to the employers' payments of social security cancellations according to their financial requested on a case- contribution exemptions set out contribution or debt situation. by-case basis, above, there will be a contribution cancellation: intermediate-sized  Eligibility can be assessed on a dedicated depending on their credit equal to 20% of the wages companies (ETIs) and large one stop shop platform https://www.plan- financial situation. paid since February. This companies. tourisme.fr/ contribution credit will be chargeable  For cancellation of rent: VSEs on all the contributions due by the and SMEs. company and will support the resumption of activity.  Eligibility can be assessed on a dedicated one stop shop 28 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

 Possible postponement on the CFE platform https://www.plan- tax. tourisme.fr/  Exceptional state guarantee for loans will be put in place its conditions will be more favourable than the guarantee set out above with higher ceiling, the ceiling "Seasonal EMP" will be extended to the best 3 months of 2019.  Cancellation of rent and fees for occupying the public domain due to national lessors (State and operators) during the closure period.  Possible tax reduction on tourist tax by local authorities.  Businesses will be able to continue to benefit from Partial activity (see below) until the end of 2020 at the conditions that prevailed during the confinement period. They may continue to benefit from the new terms and conditions into 2021.  With respect to meal vouchers provided by employers to their employees, the ceiling will be increase to €38 (instead of 19) and they can be used on weekends in restaurants until the end of 2020.  Banks will be able to grant an extension of credit terms of up to 12 months (instead of 6 months) to small and medium-sized companies in this sector. Aid in the catering,  Increase of the financial capacity of  VSE SME and Medium sized  As regards the loan for tourism, the  Apply online  Partly effective and tourism, wellbeing loan for tourism (Pret tourisme) by company in the catering, investment must be co-financed at 50% by https://mon.bpifrance.fr/ covering a period events, sport and the Bpifrance (increased globally to tourism, wellbeing events, sport other means either by contribution of the authentication/?TAM_O until 2023. culture sectors €1 billion) to finance assets , and culture sectors. shareholders or a bank loan of at least 2 P=login&ERROR_COD renovation, transfer of business or years or crowdfunding E=0x00000000&URL= Increased financial  Excluded companies are those cash flow and working capital for an that are insolvent or under an  Eligibility can be assessed on a dedicated %2Fmon- capacity for loans amount between €50,000 and €2 insolvency procedure. one stop shop platform https://www.plan- espace%2F#/formulaire and equity funding million with a deferred tourisme.fr/ /hotellerie more information reimbursement of up to 24 months  Excluded transaction : purely and by maturity up to 10 years. financial transaction such as here and here. cash out etc.

29 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

 Short term urgency loans ("fonds  Some the loan and investments d'urgence") financed by regional and are industry specific (e.g. authorities with a co-financing by the tourism, or restaurants ) or Banque des territoires for overseas local. territories and Corsica  Eligibility can be assessed on a  Loans by Caisse des Dépots dedicated one stop shop (globally €500 millions) and long platform https://www.plan- term loans by the Banque des tourisme.fr/ territoires (globally €500 millions) to complement bank loans with a view to repositioning the industry.  Equity investments by Bpifrance and Banque des territoires. Aid to local  Exceptional financial assistance.  All traders and craftsmen that  All traders and craftsmen that are active as  This aid will be paid • Already effective. commerce The aid will correspond to the are active as of 15 March 2020 of 15 March 2020 and were registered automatically by the ("commerce de amount of additional retirement and were registered before before January 1, 2019. URSSAF and will not proximité"), contributions paid by traders and January 1, 2019. require any action from craftsmen on the basis of their 2018 the self-employed craftsmen (artisans), income and may go up to € 1,250. workers concerned. independent workers The amount of this aid will also be exempt from income tax, as well as ("indépendants"): social security contributions. funds This exceptional aid is in addition to all the measures taken in favour of the self-employed by the government since the start of the crisis.  Reductions and exemptions from social security contributions : VSEs that have had to close administratively will automatically benefit from a three-month exemption from employer's contributions and social security contributions (for the periods from February 1 to April 30, 2020). They will also be able to benefit from a credit equal to 20% of the payroll subject to social security contributions over the same period, which can be used for the payment of all contributions and levies in 2020, whether on previous debts, deferred levies or future due dates.

30 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

In addition, an exceptional measure to reduce the staff social security contributions of self-employed workers will be introduced for the year 2020.  Unlocking of up to 8,000 in retirement savings contracts (Madelin contracts, as well as individual retirement savings plans (PER) resulting from the Pacte law), may be possible before December 31, 2020, including 2,000 euros tax- free.  Abolition over 3 years of the 25% increase in the taxable base for self- employed persons who do not belong to an approved management body ("organisme de gestion agréé). Special financing of  €80 million financed by the PIA,  More information can be found  More information can be found here.  The guarantees will be • Already effective. start-ups under the managed by Bpifrance, shall be here. issued and managed by aid for innovation allocated to finance bridges between Bpifrance Financement programme (PIA), fundraising. This funding, which can SA on behalf of the range from €100,000 to €5 million, government taking the form of takes the form of CBs, with possible convertible bonds access to capital, and must be co- (CBs), co-financed financed by private investors. In by private partners total, with leverage, the French Tech More information Bridge will mobilise €160 million in can be found here. equity for French start-ups. Special aid to  The "PGE Support Innovation" is  Innovative start-ups, SMEs,  Initially for companies that classified as  The guarantees will be • Already effective. innovation innovation-specific loan backed by mid-caps "innovative" with less than 5,000 employees issued and managed by companies: State the State guarantee, finances: The  and young innovative and achieving a turnover of less than 1.5 Bpifrance Financement guaranteed for loans amount of the loan granted until 31 businesses. billion euros in France if: over the past 5 SA on behalf of the December, 2020 inclusive is limited years, it has one of the following: government. to business. More to one or other of the following ‒ received public support for innovation, in information can be criteria: found here. particular individual aid from Bpifrance, ‒ 25% of 2019 net sales, or of the the list of which is fixed by decree of the last financial year ended; or Minister for the Economy;  2 times the amount payroll in France, ‒ raised funds from French or foreign excluding employer contributions for investors specializing in innovative 2019 or the last available year. For companies (seed funds, venture capital companies created since January 1, funds, growth capital funds, etc.), or 2019: France's estimated payroll ‒ was accompanied by an incubator

31 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

over the first two years of activity,  Since 8 May this also applies to young excluding employer contributions innovative business that are: SMEs; less than 8 years old; independent and make R&D expenses up to a minimum of 15% of the tax deductible expenses for 2020 financial year.  Business have to experience economic difficulties linked to the health crisis. Support measures  Artists-Auteurs: they have access to • More information can be found  More information can be found here. • Already effective. for the book trade the solidarity fund until the end of here. 2020. They also benefit from a 4- month exemption from social security contributions (March to June 2020).  Partial activity: Bookstores and publishing houses will be able to continue to benefit from a partial activity allowance for hours not worked in the coming months. For those that will experience a loss of at least 80% of revenues, 100% coverage is planned.  Repayable advances and equity loans: these general mechanisms for bank financing and strengthening equity capital will also be accessible to the most vulnerable players in the sector. Loans to SME  Loans without guarantee, without • 12 months' minimum activity.  On the Bpifrance website or by telephone. • Already effective. More information real collateral on the assets of the • All business sectors, except company or its manager, are: can be found here. exclusions (SCIs, financial ‒ Prêt Rebond (bounce-back loan), intermediation companies, a loan between €10,000 and property development and €300,000, subsidised over a rental companies, and period of seven years with two agricultural companies with a years of deferral turnover of less than €750,000). ‒ Prêt Atout (asset loan), up to €5 • Prêt Rebond:SMEs million for SMEs and €30 million • To finance cash requirements for mid-sized companies, granted linked to the economic situation over a period of three to five years with deferred amortisation • Increase working capital requirements  From 24 March 2020, suspension of the payment of loan maturities • Intangible investments: costs of upgrading to standards 32 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

granted by Bpifrance, for a period of (environment, security, etc.), six months; recruitment and prospecting  For Bpifrance customers, costs, etc. mobilisation of all invoices and • Tangible investments with low granting of a cash credit pledge value: equipment representing 30% of the volumes designed/produced by the mobilised. company for its own needs (IT equipment, etc.) • Prêt Atout:VSEs, SMEs and Midcaps • To finance cash shortage or an exceptional increase in WCR, linked to the economic situation

Other Financial Support What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

Normal Partial  To prevent firing employees, it is  All companies for the following The application must contain: • The employer should • Already effective. activity (French possible for the employer to reduce employees:  The reasons for changing to part-time work inform and consult with CSE, and ask the version of furlough) the working hours of employees. ‒ Full-time and short-term (notably reduction in business, full or partial DIRECCTE. By way of More information  For the hours not worked, the contract shutdown or impossibility to organise social employee is paid an indemnity of up distancing). exception, the opinion can be found here. ‒ Apprentices of the CSE can be to 84% of its net hourly salary (or  The measures taken to mitigate going to 100% of SMIC) by the employer. A ‒ Part-time workers transmitted within two part-time work months of the draft decree provides that as of ‒ Temporary workers  The provisional duration and the number of application. November 1, 2020, the amount of ‒ VRP compensation will decrease. The hours requested Contractual hours that • Within 30 days of the indemnity is exempted from social ‒ Homeworkers and exceed the 35 hour week will now be decision to resort to security contribution but subject to childminders indemnified in cases of partial activity. Until partial work, the CSG and CRDS at 6.7% (except for ‒ Employees under a lump sum now, indemnification could cover hours employer must make employees receiving a monthly agreement. below 35 hours/week only. the request here. allowance equal to 1,539.42€ gross  It does not apply to employees  The number of employees affected • For employers not for 2020). that are expatriates outside of  Until 25 April 2020, partial activity was established in France  The employer may decide to pay a France, except where they are supposed to cover a whole service or the relevant URSSAF higher indemnity, but starting from 1 prevented from returning to department. Since 25 April, it is possible to is that of Alsace: May 2020 where part of the gross France or employees that are place one individual only in partial activity or Centre national firmes remuneration exceeds €4,849.17 seconded in France. to implement it on a collective basis, but étrangères (CNFE). (i.e. 70% of four times the minimum with a non-uniform distribution of hours 33 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

statutory salary, SMIC) this is now  It does apply to the employees (subject to a company's agreement or a subject to social security where their employer, a foreign favourable opinion of the CSE in the contributions as normal salary. company, has no establishment absence of unions).  The employee has their work in France provided that (i) the  Senior executives (cadres dirigeants) may temporarily suspended, but for employee is registered under be placed in partial activity from 25 April benefits and rights, the employee is the French social security 2020, but only in the event of temporary considered as if working. system and has a legal closure. A decree shall bring more details employment contract private on financial cover.  The employer can benefit from an with the foreign company; and allocation from the Agence de (ii) the employer, a foreign  As of 1st May 2020, parents forced to stay services et de paiement (ASP). company, is subject to social at home to look after their children are  Until October 2020, except for contributions and contributions deemed vulnerable because of their state of limited sectors, the employer will be and unemployment insurance health, as well as people living with them, reimbursed 60% of gross salary obligations under legislation and are switched to a partial activity (within the ceiling of 4.5 times the scheme. SMIC).  Until December 2020, companies in three types of sectors (e.g. catering, tourism and culture sectors) will be reimbursed 70% of the gross remuneration. This 70% rate should last until December 31, 2020. A decree is expected to confirm this.  The portion of contractual hours that exceed the 35 hour week will now be indemnified in cases of partial activity.  The maximum period for partial work has been extended to 12 months. The annual quota of compensable hours has been set at 1,607 hours. Long-term Partial  This is a specific partial activity  Any company facing with a This system allows : It may be implemented by • Effective since July activity (French system that intends to ensure the sustainable reduction in its  to reduce working hours by up to 40% of (i) a collective in-house 1st 2020. version of furlough) maintenance of employment in activity, whatever its size and the legal duration (up to 50% of the legal agreement or (ii) a companies faced with a sustainable sector of activity. duration in exceptional cases) ; unilateral decision of the reduction in activity which is not, employer in application of however, likely to compromise their  ... for a maximum of 24 months, an extended branch sustainability. It requires a collective consecutive or not, over a period of 36 agreement, sent to the agreement providing for months. The validation or approval by the administration for commitments not cutting jobs Direccte is valid for 6 months and will or will validation or approval as against an improved partial activity not be renewed depending on the balance of July 30, 2020 and until allowance. sheet carried out by the company... ; June 30, 2022.

34 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

 ... by providing the employees concerned with an hourly indemnity paid by the employer for each hour "off work" corresponding to 70% of the gross hourly remuneration (up to a limit of 4.5 Smic)... ;  ... and a reimbursement from the State through an hourly allowance equal to 60% of the gross hourly pay of each employee concerned (up to a limit of 4.5 Smic). In practice, employees receive their entire remuneration at the level of the SMIC, 84% at the level of 1.15% of the SMIC. The rate of the allowance paid to the employer is 85% of the compensation paid to employees. Assistance to  Unoccupied employees who so wish All.  This system requires • Already effective. employers: can be transferred temporarily to a the agreement, each employee sharing company faced with a shortage of time, of the employee staff. The employee then keeps his concerned and of the employment contract and 100% of two companies. his usual salary, paid by his original Simplified models of employer. The company that the provision temporarily receives him reimburses agreement between this salary, social charges and companies and of the professional expenses, to the addendum to the original company. employee's employment contract are available on the website of the Ministry of Labour.  The employer trade union of metallurgy (UIMM) has launched a platform to facilitate the exchange of employees between companies. Assistance to  Exemption from social security All.  The lump sum allowance would be exempt  Up to the scale: • Already effective. employers: social contributions of the lump-sum from social security contributions up to: companies charges exemption allowances paid monthly to ‒ €10/month for one day of home-working automatically benefit of the teleworking teleworkers . every week from this capped social charge exemption allowance

35 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

‒ €20/month for two days of home-working (without providing every week supporting documents). ‒ €30/month for three days of home- If the amount paid working every week exceeds the scale, ‒ €40/month for four days of home-working exemption will only be every week granted if the employer can prove the reality of ‒ €50/month for five days of home-working the professional every week. expenses borne by the  When the amount paid by the employer employee. exceeds these limits, exemption from social security contributions may be allowed, provided that the employee can prove the reality of the professional expenses incurred. Daily allowance if • Parents of children under 16 years All parents that are : • One of the two parents of (i) a child under • For employees in the • This measure is children are to be old or disabled or identified by the • Employees of the private sector. the age of 16 on the day of the start of the private sector : partial retroactive: it covers Health Insurance as being a contact cessation or (ii) a child with disabilities activity scheme on kept at home and for • Independent workers. all the stoppages "vulnerable" workers of infected person, who are unable under the age of 18 and taken into the care https://activitepartielle.e concerned as of to telework, can benefit from the first • Civil servants. of a specialised establishment. mploi.gouv.fr; September 1, 2020. day of their work stoppage, and at This compensation may be paid to • For employees, the parent must not be able • For self-employed More information the latest until the end of the one parent per household, in the to work from home. workers and public law can be found here. isolation period, from: event that both parents are unable contract workers: daily • For employees in the private to work from home and upon allowances after sector : partial activity presentation of proof of either the application on the scheme; closure of the class or the child's platform: • For self-employed workers contact situation. declare.ameli.fr; and public law contract As of September 1, 2020, workers: daily allowances; vulnerable persons must have the • For civil servants: special characteristics listed below and leave of absence (ASA). have medical certificate to their employer: • Until 31 December 2020, and regardless the starting date of the • 65 years old or older with sick leave, employees who are on diabetes associated with obesity exceptional sick leave for reasons of or micro or macrovascular "vulnerability" will automatically complications ; switch on the partial activity scheme. • be undergoing dialysis or have severe chronic kidney failure; • be suffering from a progressive cancer under treatment (excluding hormone therapy); 36 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

• have congenital or acquired immunosuppression: drug (cancer chemotherapy, immunosuppressive treatment, biotherapy and/or corticosteroid therapy at immunosuppressive doses), uncontrolled HIV infection or infection with CD4 < 200/mm3 , following a solid organ or hematopoietic stem cell transplant, related to a malignant hemopathy during treatment. Special assistance to • The accelerated payment of PIA • Companies that already benefit • PIA or the aid for innovation plan already.  Already effective. start-ups already allocated, but not yet paid, from the PIA or the aid for for a total estimated amount of €250 innovation plan. million, by paying in advance the More information tranches not yet paid for the project can be found here. that have already been approved. • For companies receiving aid in the form of repayable advances or advances with royalties, the next due dates for reimbursements are postponed for up to six months. Postponement of • The postponement by the URSSAF • Companies or independent • Automatic in the case  Already effective. social security of social security contributions due workers (but not micro- listed below, or a prior payment on October 5 or 15 is possible entrepreneurs). request and a form without prior request for employers must be completed in the following situations: https://mon.urssaf.fr/lie More information • the activity is newly nsprfd?urlsuivre=mon.u can be found here. prevented: cafés restaurants rssaf.fr/contact. in zones of maximum alert, as well as sports halls in zones of maximum alert or in zones of reinforced alert ; • the activity is still prevented due to the provisions put in place to fight the pandemic (shows, discos, festivals, etc.); • employers located in Mayotte or French Guiana, 37 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available? where the state of health emergency ended very recently. • The deferral of contributions is also possible on October 5 or 15 for employers whose activity is newly limited: cafés whose closing time is anticipated in areas of heightened alert. In this case, a prior request and a form must be completed. Postponement of • Possibility to request the • All companies and independent • Not having paid dividends. • Companies that have direct tax payments postponement without penalty of the workers. already paid their settlement of their next direct tax March instalment and instalments (corporate tax no longer have the instalment, payroll tax, etc.). possibility of opposing • For income tax and CVAE the SEPA direct debit instalments, the payment of with their online bank, instalments can be staggered but they can apply for a according to the forecast result for refund from their SIE. the financial year and by increasing • Independent workers the tolerated margins of error. may change the amount of tax payment online on the tax authority's website or postpone payments up to three months. • It is possible to suspend monthly contracts for the payment of business tax (CFE) or property tax (taxe foncière), either online or by contacting the Service Deduction Centre (Centre Prélèvement Service). The balance will be levied on the yearly deadline, without penalty.

38 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available?

Special aid on cash • The internal consumption tax on flow for road energy products (TICPE), currently transport companies reimbursed to operators of road freight transport every six months, will be reimbursed quarterly instead. • The next instalment of the road vehicle tax (TSVR) 2020, which had to be paid no later than 1 September 1, now has until 1 December 2020 to pay. Accelerated refund • Companies that benefit from one or • The company has to of tax credit or VAT more tax credits refundable in 2020 file its tax credit and, in credit can request the reimbursement of the absence of a filing the balance of the available of income statement receivable, after deduction, where result, indicate the applicable, from their corporate remainder of corporate income tax due for the FY 2019, income tax due. without having to wait for the filing of their tax return. • Request for reimbursement of VAT credit will be handled more quickly by the tax authorities. Reduced VAT rate • All operations performed on the • Companies performing these Qualifying products • Reduction from 20 to • Now until 31st applied to some French territory on some specific operations on qualifying 5.5% December 2021. hygiene-related products (protective breathing products products and masks, protective gear (gloves, hygiene caps, overalls), goods equipment pertaining to personnel hygiene (hydroalcoholic gel). benefit from a reduced VAT rate. Additional • Additional delays can be granted for • All companies and independent • Filing of relevant postponement for the payment of taxes and the workers. documents with the payment of social employer's share of social security local Commission des security charges and contributions. chefs de services financiers (CCSF). taxes • This does not include the employee's part of social security More information contribution, nor taxes withholding can be found here. income tax. Credit mediation • Credit mediators of the Banque de • All companies and businesses. One can refer to the mediator through filling in France and the instituts d'émission a form and providing documentation. More information en Outre-mer (for overseas can be found here territories) assist companies in 39 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available? negotiation of new schedules for repayment of loans. Impact on tax audits • The statute of limitation for the • Applicable to both the taxpayers • Applicable only for French tax authorities generally and the tax authorities. the year with a expiring on 31 December 2020 is statute of limitation suspended until 23 August 2020 so expiring on 31 that it will elapse on 14 June 2021. December 2020. The • Suspension, during the period from time limits of statute 12 March until 23 August 2020, of of limitation expiring all time limitations for conducting after 31 December audit and investigation procedures 2020 are not affected in tax matters. by the suspension. • Identical provisions have been ruled for all time limitations applicable to recovery, inspections and tax rulings under the French Customs Code. • No computation of late payment interest from 12 March until 23 June 2020. Possibility to stagger • Companies having difficulties can • Small companies tax and social ask to stagger their taxes and social contributions due contributions due within a 36 months within 36 months period of time.

40 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 France

Key Contacts

Antoine Adeline Philippe de Saint-Bauzel Partner, Paris Partner, Paris T +33 1 5383 7400 T +33 1 5383 7408 E [email protected] E [email protected]

Véronique Collin Pauline Pierce Partner, Paris Partner, Paris T +33 1 5383 7400 T +33 1 5383 7400 E [email protected] E [email protected]

Stephanie Faber Of Counsel, Paris T +33 1 5383 7400 E [email protected]

41 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

Financing Facility Support What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? Bridging aid in the  Securing the economic existence of  Companies and organizations from  It is not possible to pay out the bridging  The period for bridging  Bridging Aid III, applied amount of up to €25 small and medium-sized all sectors of the economy to the aid to companies that have ceased aid has been extended from 01.01.2021 enterprises, which are Corona- extent that they do not qualify for the business operations or filed for for the period January billion for small and  Start of applications for related total or partial closures or Economic Stabilization Fund and to insolvency. 2021 to 30 September medium-sized Bridging Aid III on 10 restrictions significant loss of sales the extent that they had to 2021 (= Bridging Aid companies  If the turnover in the month of February 2021 and will suffer. discontinue their business activities III) and under Bridging promotion is at least 60% of the end on 31.08.2021  Eligible for funding are ongoing completely or to a significant extent turnover of the previous year's month, AID III Plus the  Payments started on contractual or regulatory costs as a result of the Corona crisis. the bridging aid is cancelled pro rata conditions are 12.03.2021 and are incurred during the funding period,  The reference to the Economic for the respective month of support. improved. extended to 30.09.2021 like rents, interest expenses for Stabilisation Fund ensures that small  Any overcompensation must be repaid.  The application for credits and loans, financing cost and medium-sized enterprises can Bridging AID III and  Supplementary Bridging component of leasing instalments, apply for bridging aid without  The benefits received as bridging aid Bridging-AID III Plus AID III Plus until 30 expenditure on necessary limitation to the number of under the above conditions are taxable and Start-Up Aid and September, 2021 maintenance, servicing or storage of employees. and according to the general tax Start Up Aid Plus is to fixed assets, and leased assets, regulations within the framework of the be submitted via the  Solo self-employed and freelancers determination of profit to be considered including IT, expenditure on in their main occupation are also uniform nationwide electricity, water, heating, cleaning eligible to apply.  Under the Bridging Aid III, the platform and hygiene measures, property previous reimbursement of fixed costs www.ueberbrueckung taxes, operating license fees,  Applications may also be submitted was supplemented by a one-off flat- shilfe- insurance, subscriptions and other by non-profit enterprises and rate operating fee (start-up aid). This unternehmen.de. fixed expenses, costs for tax organizations affected by the Corona means that solo self-employed persons crisis in the above sense,  The equity grant and consultants or auditors incurred in who would otherwise not be able to other improvements will connection with the application for irrespective of their legal form, which claim fixed costs under the Bridging are economically viable on the be provided under the Corona bridging aid. Costs for Aid III, but who nevertheless had to existing Bridge AID III trainees and personnel expenses market in the long term are active accept a sharp drop in sales, can (e.g. youth training centers, inter- and Bridging AID III during the eligibility period that are receive a one-off payment of 25 Plus . not covered by short-time working company vocational training centers, percent of the sales generated in the allowances. Type of subsidy and family holiday centers). In the case of corresponding pre-crisis period in calculation of the subsidy amount these companies and organizations, 2019. Due to its conditions, the start-up the revenue (including donations and assistance is not to be credited

42 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available?  The bridging aid allowance membership fees) is used instead of towards basic social security benefits, reimburses a share of 80 percent of the turnover. etc. fixed costs with a more than 70  The following companies are  The Start-Up Aid is to be paid out as percent drop in sales, 50 percent of explicitly not eligible to apply an advance, even if the concrete fixed costs in the event of a slump in (exclusion criteria): revenue losses during the period sales between 50 percent and 70 December 2020 to September 2021 percent, 40 percent of fixed costs in ‒ Companies that are not registered with a German tax office, are not yet known at the time of the event of a slump in sales application. If, contrary to initial between 40 percent and less than ‒ Companies without a domestic expectations, sales during the term 50 percent in the month of permanent establishment or exceed 50 percent of the seven-month promotion compared to the same registered office, reference sales, the advance month of the previous year. ‒ Companies that were already in payments are to be repaid pro rata.  Supplementary information on the (economic) difficulties on One quarter of the start-up aid is to be new equity grant and December 31, 2019 (EU repaid if sales are between 50 and 70 improvements to Bridging AID III: definition)4 and have not percent, half if sales are between 70 - All companies that have overcome this status thereafter; and 80 percent and three quarters if suffered a drop in sales of ‒ companies that were only founded sales are between 80 and 90 percent. more than 50 percent in each after 31 October 2019, If the turnover achieved is above 90 percent, the start-up aid must be of at least three months since ‒ Public enterprises, November 2020 will receive an repaid in full. If the repayment equity grant. The equity grant ‒ Companies, including affiliated calculated in this way is below a trivial is in addition to the regular companies, that meet the size amount of € 500 no repayment is Bridging AID III grant. criteria for access to the Economic required. Stabilization Fund, and - In addition, the fixed cost  The Start-Up Aid amounts to a one-off reimbursement of Bridging AID ‒ Freelancers or solo self-employed 50 percent of a six-month reference III will be increased to up to persons in sideline turnover, up to a maximum of €7,500. 100 percent for companies that Full restart assistance is granted if the turnover of the solo self-employed suffer a sales slump of more  The Bridging Aid III and Bridging than 70 percent. Previously, up person has decreased by more than 60 AID III Plus from January 2021 to percent compared to the reference

43 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? to 90 percent of eligible fixed September 30, 2021 is intended to turnover during the assistance period costs were reimbursed. take into account the special situation January 2021 to September 2021. The  In addition to the new equity grant, of solo self-employed persons, reference turnover is normally six times especially artists and cultural workers. the average monthly turnover in 2019. the bridging aid is also being The costs to be taken into account for  With the continuation as Start Up Aid improved again overall: the special this group will in future include a one- depreciation options for seasonal Plus in the third quarter 2021, the off operating allowance of 25 percent support for solo self-employed persons and perishable goods for retailers of sales in the reference period. are being extended to increases from previously up to € manufacturers and wholesalers.  The start-up aid will amount to a one- 1,250 per support month in the period off sum of up to €5,000 and will cover January to June 2021 to up to € 1,500  For companies in the event and the period until June 2021. Eligible for per support month in the period July to travel industry, in addition to the application are solo self-employed September 2021. general flat-rate personnel cost persons who otherwise do not claim  The conditions for the final settlement allowance, a start-up allowance of or cannot claim any fixed costs under 20 percent of the payroll that would of the Start-Up Aid (assistance period Bridging Aid III and who earned at January 2021 to June 2021) will be have been incurred in the least 51 percent of their income from corresponding reference month in updated in the new Start-Up Aid Plus. self-employment in the reference The sales to be stated there now refer 2019 will be introduced for each period (normally the year 2019). The month of support. The maximum to the three-month funding period July full operating allowance is granted if to September 2021. total funding amount of this start-up the turnover of the solo self-employed aid is 2 million euros. person has decreased by more than  The special regulations already in  The event and culture industry can 50 percent during the seven-month force under the Start-Up Aid, e.g. for additionally claim cancellation and period from December 2020 to June applicants on parental leave, will be preparation costs incurred up to 12 2021 compared to a seven-month continued - with slight adjustments to months before the start of the reference turnover in 2019. the shorter funding period of three months. planned event date.  Affected persons who started their  Applicants are given the option, in self-employment after October 1,  Start-Up Aid Plus continues to be justified cases of hardship, to 2019, and therefore cannot show aimed at those affected who are choose alternative comparison annual sales for 2019, can choose experiencing Corona-related sales periods for determining the either the average monthly sales of losses, but who are unlikely to benefit revenue shortfall in 2019. the two pre-crisis months January and from Bridging AID III Plus due to low February 2020 or the average monthly fixed costs. As before, in addition to  Companies sponsored by religious sales of the 3rd quarter 2020 (July 1 solo self-employed persons (with or communities and young companies to September 30, 2020) as reference without a partnership), short-term up to the establishment date of monthly sales. employees in the performing arts, non- October 31, 2020 are now eligible permanent employees in all sectors as to apply. Previously, only  In addition to the solo self-employed well as corporations and cooperatives companies established by April 30, and the non-permanently employed, are eligible to apply. Start-Up Aid Plus 2020 were eligible to apply. "short-term employees in the - like Start Up AID - is paid out as an performing arts" will also be able to  As for solo self-employed advance and is not offset against basic apply for restart aid of up to €7,500 for persons with income exclusively benefits. the six-month period from January to from freelance and commercial September 2021.  Beneficiaries must draw up a final activities, a right of choice is also account by self-checking after the end created for solo self-employed of the eligibility period. Within the 44 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? persons who are partners in  Full restart assistance is granted if the scope of this self-assessment, any partnerships: they can apply for turnover of the solo self-employed income from dependent employment restart assistance either via an person has decreased by more than must be added to the turnover from auditing third party or as a direct 60 percent compared to the reference self-employment. Any repayments due application (the application for turnover during the eligibility period must be notified to the Grant Office by restart assistance via auditing January 2021 to September 2021. 31 December 2021 without being third parties is thus now only The reference turnover is normally six asked and transferred. Verifications mandatory for corporations). times the average monthly turnover in are carried out to combat subsidy  Companies and solo self- 2019. fraud. employed persons are given a  The new start-up aid is paid out as an  For companies with sales below the subsequent right to choose advance. Upon application, €750 million threshold, applications between new start-up aid and beneficiaries commit to a final have been possible since February 10, Bridging Aid III and Bridging AID accounting by self-audit at the end of 2021; since February 12, these III Plus at the time of the final the subsidy period. If the turnover companies have been receiving settlement. In this way, the most during the six-month period is more advance payments of up to 50 percent favorable assistance in the than 40 percent of the six-month of the requested funding amount, up to individual case can be reference turnover, the advance a maximum of €100,000 per funding determined retrospectively due to payments must be repaid on a pro- month. Companies affected by the the uncertain course of economic rata basis. If the achieved turnover is lockdown with annual sales of more development. 90 percent or more, the restart than €750 million can also benefit from  New to the Bridging AID III Plus subsidy must be repaid in full. these progress payments. program is: Random follow-up audits are carried  Since 3. March 2021, larger out to combat subsidy fraud.  Companies that bring staff companies affected by the lockdown back from short-time work,  The criteria for eligibility to apply for can also apply for Bridging Aid III and hire new staff or otherwise Bridging Aid III and Bridging AID III Bridging AID III Plus. The previously increase employment in the Plus have been simplified. To the applicable sales ceiling of €750 million course of the reopening will extent that a business experiences a no longer applies to companies receive a personnel cost drop in sales of at least 30 percent in affected by the lockdown. This applies subsidy ("restart premium") any month compared to the reference to companies in the retail, events and as an alternative to the month in 2019, for example, because culture, hotel, catering and existing flat-rate personnel the business had to close due to pyrotechnics industries that are cost allowance as a subsidy COVID-19 or fewer customers came affected by closure orders based on a for the resulting increase in due to COVID-19, it can apply for federal-state decision, as well as to personnel costs. They Bridging Aid III and Bridging AID III companies in the wholesale and travel receive a subsidy of 60 Plus. Businesses can apply for industries. percent on the difference Bridging Aid III and Bridging AID III  Advance payments can amount to up between the actual Plus for any month in which there is a to 50 percent of the requested funding personnel costs in the corresponding drop in sales. amount, up to a maximum of €100,000 subsidy month of July 2021  The maximum monthly funding limit is per funding month. For the entire and the personnel costs in once again increased significantly. funding period of Bridging Aid III May 2021. In August, the Companies can receive up to € 10 Bridging AID III Plus (November 2020 subsidy is still 40 percent million in Bridging Aid III and to September 2021), companies can and in September 20 Bridging AID III Plus per month thus receive a maximum of €800,000 percent. No subsidy will be (instead of the €200,000 and in advance payments. The first 45 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? granted after September €500,000 previously provided for). progress payments with amounts up to 2021. The upper limits of European state aid €400,000 flowed from February 15,  In the future, lawyers' and law apply 2021. Partial payments of more than court costs of up to € 20,000  The ceiling for subsidies from €400,000 euros have ben disbursed per month will be Bridging Aid III and Bridging AID III from the end of February 2021. The reimbursed for restructuring Plus is a maximum of EUR 52 million, regular disbursement after application companies in the event of namely €12 million from the current processing by the federal states imminent insolvency. EU aid framework consisting of small started in March 2021.  The new start-up assistance grants, de minimis and fixed-cost aid  The new equity grant is in addition to for solo self-employed plus € 40 million from the new aid the regular Bridging AID III and persons will be extended framework of the federal damage Bridging AID III Plus grant. and will increase from up to compensation scheme. The new EU € 1,250 per month for the damage compensation scheme period from January to June applies to companies directly or 2021 to up to € 1,500 per indirectly affected by government month for the period from closure measures. In the future, these July to September 2021. For companies will be able to claim the entire support period damages of up to € 40 million. from January to September  As in the past, the specific amount of 2021, solo self-employed the subsidies is based on the decline persons can thus receive up in sales compared to the to €12,000. corresponding month in 2019 and is staggered:  in the event of a decline in sales of 30 percent to 50 percent, up to 40 percent of eligible fixed costs will be reimbursed,  for a decrease in sales of 50 percent to 70 percent, up to 60 percent of eligible fixed costs will be reimbursed; and  if sales decline more than 70 percent, up to 90 percent of eligible fixed costs will be paid.  New to the Bridging AID III Plus program:  Companies that bring back staff from short-time work, hire new staff or otherwise increase employment in the course of reopening can receive a personnel cost subsidy ("restart premium") 46 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? as an alternative to the general lump-sum personnel cost allowance as a subsidy for the resulting increase in personnel costs.  In future, it will be easier for companies threatened with bankruptcy to avoid insolvency through targeted stabilization and restructuring measures. Court costs of up to €20,000 per month for restructuring companies threatened with insolvency will be reimbursed.  Structural measures and other investments to implement hygiene concepts and digitalization are also eligible for funding. The specific measures eligible for funding are defined in the FAQ in the form of a positive list. This creates clarity and legal certainty for all parties involved.  Eligible companies for the Equity Bridging AID III are those with at least a 50 percent drop in sales in at least three months between November 2020 and June 2021.  The new equity subsidy for strengthening the substance of the business amounts to up to 40 percent of the amount reimbursed to a company for eligible fixed costs under Nos. 1 to 11 (see FAQ on Bridging Assistance III). The equity subsidy is staggered and increases the longer companies have suffered a sales slump of at least 50 percent. It is paid from the third month of the sales slump and amounts to 25 percent in this month. In the fourth month with a sales slump of at least 50 percent, 47 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? the surcharge increases to 35 percent; for five or more months, it increases again to 40 percent per month. This results in the following subsidy rates for the individual months.

Extraordinary  The technical requirements for the  Eligible to apply are companies,  The economic December Aid is paid  Applications via the  The application financial help up to regular disbursement of the businesses, self-employed persons, out as a one-off lump sum. Those nationwide IT platform period for the €15 billion for extraordinary economic aid for the associations and institutions that are affected should be helped simply and for bridging assistance December Aid ended November and month of November ("November prohibited from doing business by un-bureaucratically. and payments on 31 January 2021. Aid") are in place. This means that state order or that are already (www.ueberbrueckungs December 2020  In particular, this concerns the fixed  However, the the disbursements of November prohibited by existing orders. hilfe-unternehmen.de). costs that are incurred despite the applicant can chose Aid by the Länder started and was  Companies directly affected: It is temporary closure. In order to keep the  For solo self-employed to modify the implemented on 12.01.2021. clarified that accommodation procedure as simple as possible, these persons who do not application options.  Bridging December Aid currently establishments and event locations costs will be approximated via the apply for more than  Application ended on runs until 31 December 2020. are also eligible to apply as directly turnover. The reference point is €5,000 in funding, the 30.04.2021 but affected companies. This ensures therefore the average weekly turnover obligation to submit an  The government plans to extend modifications to the that, for example, pensions, youth in December 2019. 75 percent of the application via an and expand the existing bridging application can be hostels and concert halls also receive corresponding turnover is reimbursed examining third party 48 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? assistance beyond the end of the the aid within the framework of the for companies with up to 50 employees does not apply. They done until year. current regulations. capped by € 1 million. Grants of over 1 will be entitled to apply 30.06.2021.  Economic aid for the month of  Indirectly affected companies: All million euros for the December Aid still directly, subject to December advance payments may companies that demonstrably and require notification and approval by the special identification be granted up to a maximum of regularly generate 80 percent of their EU Commission. The Federal requirements. €50,000; solo self-employed sales with companies directly affected Government is currently in intensive  The procedure for persons may submit applications on by the closure measures. talks with the European Commission to advance payment obtain such approval for higher grants. their own behalf up to a maximum of  Affiliated companies - i.e. companies includes the following 5,000 euros. with several subsidiaries or  As an alternative to the weekly sales in points:  The advance payments for the permanent establishments - are December 2019, the average weekly  In a two-stage extraordinary economic assistance entitled to apply for funding if more sales in 2019 can be used as a basis procedure, advance for the month of December 2021 than 80 percent of the total sales of for comparison. For eligible applicants payments are initially have started on 5.12.2020. As with the network are generated by directly who commenced business operations granted up to 50 the extraordinary economic or indirectly affected companies. Up to after November 31, 2019, the average percent of the assistance for the month of 75 percent of the turnover of the weekly turnover in November 2020 or December aid applied November, advance payments for affected affiliated companies is the average weekly turnover since for, but not exceeding the month of December can be reimbursed. This applies, for example, foundation may be selected as €10,000 per applicant. comparative turnover. granted up to a maximum of to a holding company that owns both  The advance payment €50,000; solo self-employed restaurants (closed) and retail  If sales are achieved in December is granted simply and persons can submit applications on businesses (open further) - here despite the basic closure, they are not not bureaucratically on their own behalf up to a maximum of emergency aid is paid if the credited up to 25 percent of the the basis of the regular €5,000. restaurants contribute to more than 80 comparative sales. In order to avoid application for  With November and December percent of the holding company's overpayment of more than 100 percent December assistance. assistance, businesses can receive turnover. of the comparative sales, sales A separate application grants of up to 75 percent of sales  On 21.01.2021, the EU Commission exceeding this amount will be credited for advance payment is from the same period last year. approved the outstanding part of the accordingly. not necessary. If an extraordinary economic aid (so-called  The extraordinary economic aid application is subjected November/December Aid extra). This granted is offset against any state to an in-depth means that the eligibility conditions benefits already received for the examination as part of have been set, especially for period, such as short-time working the sampling procedure companies that want to claim amounts allowance or bridging allowance, or or based on concrete of more than 4 million euros within the against any benefits that may be indications, the framework of the extraordinary received later from the bridging advance payment is economic aid. The basis for the allowance. not paid out scheme approved under state aid law  Also young companies are supported. immediately. In a is a provision of European law on For companies founded after second step, an compensation for damage (Article November 2019, the comparison with automated comparison 107(2)(b) of the Treaty on the the sales of November 2020 is used. with data from the tax Functioning of the European Union authorities is carried (TFEU)). The European Commission  Solo self-employed persons have an out as far as possible. option: they can also use the average interprets this provision very  In order to prevent restrictively, so that aid may only be turnover of the previous year 2019 as a reference framework for turnover. abuse, measures are granted for damage directly caused by planned to ensure the state lockdown measures. Until now, 49 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? companies would have had to make a  In particular, companies with larger identity of the applicant. so-called individual notification for financing needs can now choose on In particular, an subsidies of more than € 4 million per which aid law basis they apply for ELSTER certificate is company. After the state aid decision, November and December Aid. The mandatory for this very time-consuming procedure of following Aid law frameworks are authentication in the individual notification is no longer eligible on which companies can base direct application. necessary for state benefits of more their applications:  To apply for bridging than € 4 million euros.  Small grants scheme and de minimis assistance, the  Restaurants that are affiliated with a regulation for amounts up to €2 million. companies should business, such as a brewery, are contact a tax  Fixed cost aid scheme for amounts up treated as if they were separate consultant, auditor, to 10 million euros. Proof of losses businesses for purposes of eligibility sworn auditor or equal to the amount of subsidies for November and December lawyer. claimed is required; subsidies of 70% assistance. The restaurant portion is (or 90% for small and micro  Applications for independent of the rest of the enterprises) equal to the amount of November and business and thus eligible to apply in uncovered fixed costs can be claimed. December assistance the same manner as other will be accepted until restaurants. This expanded  Loss compensation scheme (with no application eligibility takes effect for limit on the amount): proof of loss due 30.04.2021. November and December assistance to the officially ordered lockdown and will be adjusted accordingly. decision of October 28, 2020 (including its extension) is required. In addition to losses, lost profits may also be taken into account.  Companies are free to choose which aid framework they base their application on. For applicants wishing to use the new option, this means the following in concrete terms:  If the applicant has already received the full subsidy amount of 75% of the November or December turnover on the basis of the previously applicable Aid regime (small subsidies up to 800,000 euros and de minimis up to 200,000 euros), it does not need to take any further action.  If the applicant has already received the full subsidy amount on the basis of the previously applicable aid regime, but subsequently wishes to base his application on a different basis under state aid law (e.g. on the damage

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What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? compensation scheme in order to save his small grant for bridging Aid III), he can submit a corresponding application for amendment.  If the applicant has not yet received the full amount requested because he or she has already exhausted his or her previous small grant (including de minimis), he or she can submit an amendment application (with the right to choose the aid scheme). November or December Aid already received will be taken into account.  If the applicant has not yet been paid the full amount requested because he/she has a higher funding requirement than the maximum of 1 million euros previously permitted, he/she can submit an amendment application (with the right to choose the aid scheme) and apply for the amount still outstanding. November or December aid already received will be credited.

Hardship assistance  The hardship assistance is an  In principle, companies and self-  The amount of the support payment is  As with bridging Application can be done additional offer to companies. They employed persons who have based on the previously assistance, applications until 31.08.2021 supplement the previous suffered a Corona-related significant uncompensated Corona-related for hardship assistance assistance provided by the federal financial hardship are eligible to burden. It is based in principle on the must be submitted by government and the states in the apply. Corona-related significant eligible facts of the previous federal third parties (tax Corona pandemic. financial hardship exists in particular business assistance, i.e. in particular advisors, lawyers,  With the hardship assistance, the when companies have to bear on the eligible fixed costs. Depending auditors). German states can support extraordinary burdens that on the burden, the hardship assistance  Hardship assistance is companies that require such foreseeably threaten their economic should not normally exceed €100,000 applied for at the assistance on the basis of existence. The decision as to in the funding period. respective state. The individual case assessments, whether such a hardship exists is  The funds must be granted in responsible office is according to discretionary made by the federal states on an compliance with state aid law. The announced by the decisions by the states. equitable basis. The hardship maximum amount permissible under respective state. assistance can be used to mitigate  The federal and state governments state aid law, taking advantage of the  The decision on the hardships that have arisen in the possibilities for accumulation, may not provide one-time budget funds period from March 1, 2020 to June applications is also the totaling up to €1.5 billion for be exceeded in total (especially within responsibility of the 30, 2021. the framework of the de minimis 51 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? hardship assistance. The federal  An enterprise is defined as any regulation, the federal regulation on respective state. For government and the states each legally independent entity (with its small grants and the federal regulation this purpose, the federal contribute half of these funds. The own legal personality), irrespective on fixed-cost aid). states set up a federal funds can be accessed until of its legal form, that is economically  For tax purposes, the hardship grants corresponding approval December 15, 2021 active on the market (including non- are to be taken into account as office, which consists, profit enterprises or social operating income in accordance with for example, of enterprises, organizations and the general income tax regulations as representatives of associations). part of the determination of profits. The ministries and, if necessary, other  In deviation from this, the following granting authority informs the tax institutions. companies are explicitly not eligible authorities electronically ex officio of to apply: Companies that are not the hardship assistance granted, registered with a German tax office, naming the beneficiary. companies without a domestic permanent establishment or domestic registered office, and public companies.  In principle, an application is possible for companies and for self- employed persons, who suffer special hardship as a result of the pandemic.  Irrespective of their legal form associations and other organizations, that are economically active on the market are also considered companies and can submit an application.  However, no application can be submitted if the hardship can be averted by other means, such as the other assistance offered by the federal and state governments or certain own funds.  There is no legal entitlement to hardship assistance. EPR Special  The German federal government is  Start-ups as well as small and  MBGs offer equity capital as a useful  Interested parties can  Available Funding up to €2 significantly expanding the existing medium-sized supplement to the classic bank loan. obtain information on immediately and billion participation offerings of the With a participation financing (mostly in the homepages of ongoing Mittelständische form of a silent partnership) the tMBGs of the individual Beteiligungsgesellschaften economic equity ratio can be increased federal states. An (MBGen) in cooperation with the and the balance sheet ratio of start-ups overview can be found German federal states. This will as well as small and medium-sized

52 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? give SMEs better opportunities for enterprises can be improved. Together at www.vdb- recapitalization in the corona crisis. with the equity-strengthening effect of info.de/mitglieder. The aim is to strengthen the equity the short-time working allowance, the capital base of medium-sized bridging allowance as well as the companies. November/December assistance and  The funds provided via equity the support of small and medium-sized capital can be used flexibly for any enterprises via Pillar II of the Start-up financing requirements, including, Program, there is now a broad support for example, working capital of small and medium-sized enterprises financing. on the equity capital side.  The German Cabinet has approved  The previous upper rule limit for silent the draft ERP Economic Plan Act partnerships will be extended from €1 2022. On this basis, small and million to €2.5 million. The approval medium-sized enterprises will be requirement previously required in the able to obtain low-interest financing decision will no longer apply if the and equity capital in 2022 with a previous rule amount is exceeded by significantly increased volume of the federal government. around €9.8 billion compared with  Increased counter-guarantees by the the previous year. German SMEs Federal Government and the Federal will thus continue to have access to State vis-à-vis the guarantee banks a reliable and particularly generous reduce the MBGen's own risk, which range of funding from the ERP enables the active promotion of Special Fund. medium-sized companies with equity  As of January 1, 2022, the capital even in difficult times. structure of the ERP promotional  The combination with other aid loan programs will also be programmes is to be expressly simplified and the focus expanded. permitted, especially with the KfW fast In the future, all small and medium- loan. sized enterprises as defined by the European Commission are to benefit from the favorable financing conditions of the ERP promotional loan programs. Indeed, the introduction of the so-called negative bank deposit means that these can now be offered at sub- borrower interest rates starting at 0.01%.  The funding priorities are in the areas of business start-ups and growth financing, with particularly favorable conditions for structurally weak regions, innovation financing 53 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? including digitization, export financing and the provision of equity capital.

Training/education  The package of measures is aimed  Eligible for support are SMEs with up  Training SMEs that maintain their  By application to the  Available grants up to €500 at SMEs with up to 249 employees to 249 employees that provide training performance compared to the Federal Ministry of Immediately. affected by the COVID 19 crisis. training in recognized training previous three years will be supported Finance, grants should million  The Federal They are to receive temporary occupations or in practice-integrated with a training premium. They will be available for the Employment Agency support in the training year 2020/21 training in the health and social receive a one-off payment of €2,000 following periods: is responsible for to enable them to maintain their services regulated by federal and for each training contract concluded for  Training bonuses: for implementing the first training and enable young people to state law. Internships are excluded. the 2020 training year (after completion the training year funding guideline. continue and successfully complete Only one grant is paid per training of the probationary period). 2020/2021. The applications can their training and education. course. The number of employees is  Training SMEs that increase their be submitted from based on the number of employees  Avoidance of short-time  Up to an additional EUR 500 million training performance compared to the the beginning of in full-time equivalents as of the working: until 31 in 2020 and 2021. three previous years will receive a one- August to the reporting date February 29, 2020. In December 2020. off payment of 3,000 euros for each responsible the case of training associations, the additional training contract concluded  Contract and joint employment agency. employees of the individual SMEs for the 2020 training year (after training: until 30 June  Until December 2021 are considered together. completion of the probationary period). 2021.  Eligible applicants are SMEs that are  SMEs which continue their training  Takeover bonus: until significantly affected by the COVID activities despite considerable loss of 30 June 2021. 19 crisis. This can be assumed if an work (at least 50%) are subsidised with SME has implemented at least one 75% of the gross training allowance for month of short-time working in the each month that this is the case. first half of 2020 or if sales in April and May 2020 have fallen by an  SMEs from all economic sectors that average of at least 60% compared to train apprentices from other SMEs for April and May 2019. For SMEs at least six months in their own established after April 2019, the company within the framework of months of November and December contract or collaborative training and 2019 should be used for comparison have the necessary training aptitude, instead of April and May 2019. and inter-company vocational training centers and other established training service providers that train apprentices from SMEs within the framework of contract or collaborative training for at least six months.  SMEs that take on trainees from SMEs that have become insolvent due to Corona until the end of their training receive a bonus of 3,000 euros per trainee.

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What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available? Economic  The economic stabilisation fund  Companies that are considered:  Companies must be seated in  By application to the • Until 31.12.2021 Stabilisation Fund provides: ‒ Important for Germany as a Germany and be registered with the Federal Ministry of German tax office. Finance, which will Detailed information ‒ €400 billion in government business location or for the labour guarantees for liabilities market  Companies must have: decide, in agreement and an in-depth FAQ with the Federal page be accessed ‒ €100 billion for direct state ‒ Systemically important smaller ‒ Balance sheet total of more than Ministry of Economics here. participation companies €43 million and Technology. ‒ €100 billion for refinancing by ‒ Companies in the critical ‒ Revenues of more than €50 million KfW programme (see more detail infrastructure sector. ‒ More than 249 employees on an below) annual average.  Available until the end of 2021  The company: (unless extended). ‒ Must not have been in financial difficulty on 31 December 2019 ‒ Must have no other means of financing Must prove that post-COVID-19 the company will be a clear independent going concern ‒ Must guarantee a sound and prudent business policy, in particular by contributing to the stabilisation of production chains and safeguarding jobs.  Smaller enterprises outside of this criteria can apply for the fund provided that they are active in one of the sectors listed in Section 55 of the Foreign Trade and Payments Regulation or are of comparable importance for security or the economy.

 The total funding volume is €2  Start-ups and young firms in a  Start-up loan granted for:  All start-ups should  Prolonged until 30 billion, including future funding private venture fund portfolio. ‒ Setting up a business contact their banks or June 2021. programmes.  Venture capital funds audited by KfW financing partners who ‒ Consolidating a young company (up pass on KfW loans.  The €2 billion package of measures Capital or EIF will be eligible. to five years after starting business) is aimed specifically at start-ups and  In Pillar 1, applications from venture  Venture capital funds small and medium-sized enterprises ‒ Taking a share in a company as and eligible start-ups capital fund managers with a managing director with a sustainable business model volume of around EUR 860 million considering the €2 to get further equity capital. have been approved so far. The ‒ Taking over a business in the billion programme can context of a business succession find information on the 55 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are eligible? What is the criteria (if any) for How to apply When will the finance available? applying? be available?  Start-ups and company successors, funds intend to use these funds to ‒ Wanting to run a business as their BMWI, KfW, EIF and independent professionals can finance around 350 start-ups. main occupation or provisionally as KFW Capital websites. receive up to €100,000.  Pillar 2 is available to start-ups and a side-line.  The total funding volume is €2 small SMEs that do not have access  The €2 billion package of measures is billion, including future funding to Pillar 1 through a VC fund: Here based on two pillars. programmes. the funds from the €2 billion  Through the Corona Matching Facility, package of measures are extended  Venture capital funds will receive the existing cooperation with public to companies in the form of the additional public funding via the partners, such as KfW Capital and the mezzanine or equity financing via new Corona Matching Facility so European Investment Fund, will be state development institutions - that investors can continue to used to quickly make public funds either directly or via other finance highly innovative and available to start-ups via venture intermediaries such as family promising start-ups during the capital funds. offices, business angels or the COVID-19 crisis. This is intended to medium-sized investment  For start-ups and small SMEs that do ensure that even young companies companies of the states. The not have access to the Corona Pillar 1 can continue on their growth path in prerequisite for participation in Pillar - Matching Facility, further ways of the current phase. 2 is that the annual sales volume securing their financing will be opened  Pillar 1 builds on the existing must not exceed EUR 75 million. up. To this end, there will be close cooperation between the Federal The funds at the risk of the Federal cooperation with the German states, Government, KfW Capital and the Government are made available to including cooperation with national European Investment Fund (EIF) to the promotional institutions of the companies. provide private venture capital funds federal states in the form of global  Pillar 2 for start-ups and small SMEs with the funds from the package of loans by KfW that are exempt from (without access to pillar 1). The measures for participation in start- liability. The public share in the additional public funds are to be ups ("Corona Matching Facility"). In respective financing can amount to channeled through addition, venture capital funds such up to EUR 800,000 per company in Landesförderinstitute (LFI) - either as "High-Tech Gründerfonds" accordance with the "Federal directly or via other intermediaries (HTGF) or "coparion" can apply for Regulation on Small Grants 2020". such as family offices, fintechs and liquidity support for start-ups; funds business angels - in the form of are also made available through the mezzanine or equity financing to ERP-Startfonds financing program companies. The public share in the respective financing can be granted up to EUR 800,000 per company in accordance with the "Bundesregelung Kleinbeihilfen 2020.

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Other Financial Support

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available? Public tenders  In order to accelerate public  Public investment support  Binding guidelines for action by the Federal  Participate of public  The Guidelines will investment, the Federal measures should also be used in Administration for the award of public tenders enter into force on Government has cleared the way particular to strengthen small contracts. the day following for the Federal Administration to and medium-sized enterprises, their publication. The award public contracts even more start-ups and innovations. guidelines shall be quickly and easily in order to invalid after support the economic recovery. 31.12.2021  For supply and service contracts up to a value limit of €100,000 excluding VAT, simplified and faster award procedures can be carried out (in particular negotiated awards without a call for competition).  For works contracts, this limit is up to €1 million excluding VAT.  The values for the direct tender of goods and services will be raised from €1,000 to €3,000 and for the direct tender of works contracts from €3,000 to €5,000. Here the contracting authority can tender the contract directly without having to conduct a formal tender procedure beforehand.  The time limits for the submission of tenders and requests to participate can be shortened more easily. AID for Vaccine  Based on the "Guideline for  Companies with a permanent  If the plant is commissioned very quickly The application is  Application can Glass Production in Federal Funding of Production establishment or branch in by Dec. 31, 2021, a share of 80 percent of submitted by the be done starting the amount of EUR Plants for Borosilicate Tubular Germany are eligible to apply. eligible expenses will be granted. If the company entitled to on 15.06.2021 90 Million Glass and Glass Vials for Use in  Companies that were already in plant is commissioned between January 1, submit the application Vaccine Production", the BMWi is difficulty on December 31, 2019 2022 and March 31, 2022, the share is 65 or an authorized funding important products for pursuant to Article 2 (18) of the percent. If the plant is commissioned later representative vaccine supply in Germany. A total General Block Exemption than this, by the end of June 2022, a exclusively via the of up to EUR 90 million is available Regulation, may not be granted share of 50 percent of eligible expenses is electronic system "easy- to support investments in aid under this scheme. By way granted. Online" production facilities for the of derogation, aid may be https://foerderportal.bun precursor borosilicate tubular glass granted to small and micro d.de/easyonline/. In and for glass vials. Glass vials are enterprises (as defined in addition to the the primary packaging material electronic version, the 57 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available? used in the production of COVID- Annex I of the General Block application form (AZA) 19 vaccines. Exemption Regulation) that generated by "easy- were already in difficulty on Online" must also be December 31, 2019, provided submitted to the project that these enterprises are not management the subject of insolvency organization in paper proceedings under national law form with a legally and they have not received binding signature no rescue aid or restructuring aid. later than 14 days after  Companies that are subject to a electronic submission, recovery order on the basis of a unless, the application decision of the European has been signed with a Commission establishing the qualified electronic inadmissibility of aid granted by signature in "easy- the same Member State and Online". incompatibility with the internal  The Federal Ministry for market. Economic Affairs and Energy (BMWi) has commissioned VDI/VDE Innovation + Technik GmbH (VDI/VDE-IT) to implement this program:  Project Management Agency "PT-Glasvials Steinplatz 1 10623 Berlin 0 30/310078-248 [email protected] EXIST - Project  University of Tübingen funding  The EXIST start-up Prime Vector  The aim of EXIST is to improve the start-up  The EXIST program is  Ongoing Vaccine program increased by € 5 million. Technologies (PVT) has already climate at universities and non-university a support program of  From September 15, 2020, been established as a spin-off research institutions. In addition, the the Federal Ministry of industrial research institutions in from the Department of number and success of technology- Economics and Energy structurally weak regions with Immunology at the University of oriented and knowledge-based start-ups is and is co-financed by corona-related sales losses will be Tübingen and the University to be increased. the European Social able to apply for more funding from Hospital in Tübingen and will  To this end, the BMWi supports university Fund (ESF) the INNO-KOM-program for certain work towards the completion, graduates, scientists and students in  Application industrial projects approval and market launch of preparing their technology-oriented and research institutions in the vaccine. knowledge-based start-ups. In addition, structurally weak  Up to now, the research EXIST has been promoting a lively and regions from 15 institutes have financed up to 30 sustainable start-up culture at public and September 2020. percent of the project costs 58 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Germany

What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available? themselves. In order to profit private universities in competitions since from the improved conditions, 1998. research institutes must prove  With the "INNO-KOM" program, the BMWi that and to what extent they are supports pre-competitive research and unable to make their own investment projects of industrial research contribution to the previous institutions in structurally weak regions of extent due to the COVID 19 Germany. With the 2nd supplementary pandemic. budget, the Bundestag had increased the  In particular, the data from budget for industrial research by €50 million preclinical trials and the for 2020 on the basis of the economic identification of a total of nine stimulus package of June 3, 2020. INNO- vaccine candidates with KOM" is the main beneficiary of this. After excellent antibody results the increase, the program volume for 2020 convinced the independent is around €100 million expert jury of the EXIST research transfer funding programme. Further trials will be conducted shortly as part of the development process. EUR 500 million aid  The aids are for:  Eligible to apply are federal  The beneficiary must confirm in writing that  For the implementing  Applications can be for conversion and ‒ the conversion or upgrading of states and local authorities and he is able to pay the entire own contribution of the support submitted until upgrading of air existing air conditioning systems, those through participation or to bear eligible and non-eligible expenditure programme the Federal 31 December 2021 conditioning systems other means to at least 50 of the aided investment Ministry of Economics ‒ with constant volume flow or percentage of companies and Energy (BMWi) in public buildings variable volume flow, both with  Non-compliance of the above conditions financed by the Federal may lead to the withdrawal of the grant. has mandated the and places of and without room cooling Government, Länder or local Federal Office of assembly systems (e.g. cooling ceilings, authorities, institutional grant  The period within which the measures Economics and Export cooling sails, building component recipients, universities and public supported (filters, increase of fresh air) Control (BAFA): activation), need to be in effect four months after the institutions  Federal Office of ‒ for rooms in which larger adoption of the notification of grant. For measures under building modifications the Economics and Export gatherings of people, i.e. Control, Referat 515 meetings with corresponding period of approval is twelve months. density and useful life of the  The period may be extended on request  Frankfurter Strasse room, and which, at the time of before the expiry of the transposition 29 – 35, application, are suitably period. The extension of the time limit  65760 Eschborn, documented in a can be proven. needs to be comprehensible and plausible  Applications must be ‒ For these rooms, the AHU must justified. submitted by the have a control volume flow of at applicant organisation least 1,500 cubic metres per hour exclusively via the contact details BAFA shall be entitled to request further

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What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance available? eligible? applying? be available? documents if necessary. BAFA. Energy Aids  The aids are:  Companies, which high energy  Many companies have experienced a  Application to the  Starting September ‒ Adjustment of individual grid fees costs and usage and receive decline in production and sales due to the energy regulatory 30 2020 and ongoing individual grid fees Covid 19 pandemic. Due to the temporary network authority in 2021. ‒ Ensure liquidity of entities in change in electricity consumption, such cases of reduced production companies may miss the formal prerequisites for receiving individual grid fees for 2020.  To ensure that these companies are not burdened by additional costs, the regulation creates a transitional arrangement. The regulation is thus also an important signal to prevent financial imbalances at the companies concerned.  The aid may only be applied after approval under state aid law and in accordance with such approval; the Federal Ministry of Economics and Energy shall make an announcement of the day of a notification and of the state aid approval in the Federal Gazette. Vaccine Test Aids  Companies investing in production  Funding is available to  The companies are to receive a non-  Application for support  From December capacities for suitable PoC antigen companies that have invested repayable grant of up to 30 percent of are to be send to the 2020 onwards tests can apply for support from or are investing in new the eligible investment expenditure. Federal Office of the Federal Office of Economics production facilities or in the Companies that can demonstrate that Economics and Export and Export Control (BAFA). expansion of existing Control (BAFA). production facilities in Germany at least 70 percent of the input since November 11, 2020. As a products, plant parts and components matter of principle, the funding required for production are sourced is open to all technologies in within Germany or the European order to provide scope and Union will receive a bonus of 10 incentive for the development of percentage points. innovative (test) products as well.  Funding is limited to a maximum of 30 million euros per applicant. A total of up to 200 million euros is available for funding. The subsidized facilities must be commissioned by December 31, 2021 at the latest and operated for their intended purpose until at least June 30, 2022.

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Key Contacts

Dr. Andreas Fillmann Markus Schmucker Partner, Frankfurt Partner, Berlin T +49 69 17392 423 T +49 30 72 616 8112 E [email protected] E [email protected]

Dr. Jens Rinze Dr. Christian Bleschke Partner, Frankfurt Partner, Berlin T +49 30 72616 8220 T +49 69 1739 2440 E [email protected] E [email protected]

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Financing Facility Support

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? Temporary financial  SACE S.p.A. (the Italian Export Credit All companies that have  The applying company: (i) must  If the company has less than  This measure is measures to sustain agency) is authorised to grant, by 31 their registered office in not have been included, as of 31 5,000 employees in Italy and now available. companies' liquidity December 2021, a public guarantee in Italy, including SMEs (as December 2019 among those revenues not higher than €1.5 favour of financial institutions (national or defined by the European companies undertaking in billion, the following procedure international) that provide loans to Commission difficulty; and (ii) must not have, applies: companies. Recommendation) that as of 29 February 2020 non- ‒ the company shall request of  The maximum overall amount of the already obtained access, to performing exposures as the lender the loan guaranteed guarantee is €200 billion; a portion of this the fullest extent possible, defined by European law. by SACE; to the Guarantee Fund (see amount, at least €30 billion, must be  If the guarantee is granted: ‒ if the request is approved, the allocated in favour of SMEs. next row). Companies belonging to groups based ‒ the company must not resolve lender submits a guarantee  The guarantee can be provided only in in non-cooperative upon distributions of dividend request to SACE; relation to loans with a duration not jurisdictions for tax or share buybacks during ‒ the lender then proceeds to exceeding six years – that could be purposes, as defined by 2020; grant the loan. extended up to 10 years upon prior European law, are out of ‒ the employment level of the  If the company has more than authorization of the European scope. company must be managed Commission. 5,000 employees in Italy or through trade union revenues higher than €1.5  The amount of the guaranteed loan must agreements; billion, the guarantee may be not exceed the greater of the following ‒ the financing covered by the granted only with the approval amounts: (i) 25% of 2019 company guarantee must be used to of the Ministry of the Economy, revenues in Italy or (ii) double the amount support personnel costs, rent to be adopted in agreement with of the company's personnel costs investments or working capital the Ministry of Economic sustained in 2019 in Italy. of the production plants and Development.  The guarantee is a first demand and business activities located in irrevocable guarantee and it covers: Italy or – if guarantees are granted after 31 December ‒ 90% of the loan amount for companies 2020 – to repay loans on the having less than 5,000 employees in basis of a debt rescheduling Italy and revenues no greater than €1.5 operation. billion; ‒ The company must not ‒ 80% of the loan amount, for companies relocate its production having revenues in the range of €1.5 outside of Italy. billion and €5 billion or more than 5,000 employees; ‒ 70% of the loan amount for companies having revenues greater than €5 billion.

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? Guarantee Fund for  Fund aimed at assisting companies in  For the purposes of access to  Application should be made  This measure is now Small and Medium accessing funding from financial the Guarantee Fund (eligibility directly to financial institutions, available. SMEs (as defined by the Enterprises institutions (banks, leasing companies and conditions), the probability of which shall submit an other intermediaries) by way of grant of a European Commission default by companies is to be application to the Guarantee partial public guarantee. Recommendation) assessed only on an economic Fund.  The Fund provides for the following main and financial basis; companies measures: with "non-performing" exposures and companies with an ‒ lenders are entitled to obtain the "undertaking in difficulty" under guarantee free of interest; Article 2(18) of Regulation (EU) ‒ the maximum amount of the 651/2014 are out of scope. guarantee per borrower has  For loans up to €30,000, in order increased up to €5 million; to promote immediate access to ‒ for direct guarantees, the maximum credit to companies which auto- guaranteed amount is up to 90% certify that their business activity (80% as from 1 July 2021) of loans has been particularly damaged with a duration of up to 72 months – by the restrictions imposed due that could be extended up to 120 to the COVID-19 emergency, the months with prior authorization of the guarantee may be equal to European Commission; the total 100% (90% as from 1 July 2021) amount of such loans may not exceed of the loan, without necessity to alternatively: carry out a credit assessment, if - double the amount of the 2019 the following requirements are personnel cost; satisfied: - 25% of the total turnover in 2019; ‒ the loans must provide for the start of repayment of the - the demand for working capital principal no earlier than 24 and investment costs in the months after disbursement; following 18 months for SMEs and in the following 12 months ‒ the loan duration is up to 15 for companies up to 499 years and the amount does employees; not exceed alternatively: - double the amount of the ‒ if (i) the loan has a duration longer 2019 personnel cost; than 72 months – or 120 months if extended – and (ii) the amount of the - 25% of the total turnover loan exceeds the above-mentioned in 2019. limits, then the guarantee covers up to - 80% of the loan and the reinsurance up to 90% ‒ for companies with revenues up to €3.2 million, which auto-certify that they have suffered from the COVID- 19 emergency, the guarantee of the

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? Fund can be combined with other guarantees granted by other funds, to cover up to 100% of the loan; this guarantee is granted only for loans not exceeding alternatively: - double the amount of the 2019 personnel cost; - 25% of the total turnover in 2019. Fund for medium size  A Fund of €4 billion will be established,  Italian based companies  In order to apply, companies:  Online application on the  The measure companies aimed at subscribing, by 30 June 2021, with less than 250 website of Invitalia (the National expired on 30 June must not be subject to bonds or debt securities issued by eligible employees, having 2019 ‒ Agency for Inward Investment 2021 companies for a maximum amount equal to revenues between €10 insolvency proceedings; and Economic Development). the lower of: (i) three times the amount of million and €50 million, that: ‒ must not have fallen within the the resolved capital increase (see next ‒ have suffered an overall category of undertakings in column) or (ii) 12.5% of the company reduction of a minimum of difficulty as of 31 December revenues for the year 2019. 33% in the amount of 2019;  The financial instruments must be repaid 6 revenues in March and ‒ must be compliant with tax years after the date of subscription. April 2020, compared to payments, environmental, Repayment in advance is possible after 3 the same period in 2019; buildings and anti-mafia years from subscription. ‒ have resolved and regulations and directors and  The total amount of the facility, including implemented by 30 June shareholders must not have the tax credit set forth in the row below 2021 a fully paid-in capital been definitively convicted, in and other State aid granted to the increase for an amount the last five years, for tax company because of the COVID-19. not less than €250,000. evasion; emergency, must not exceed a maximum ‒ must not fall within the amount of €800,000 per company.  Please note that investors are entitled to a tax credit of category of companies which 20% of the invested amount, have received and not repaid submitting a specific request any aid deemed unlawful or to the Italian Revenue incompatible by the European Agency, in compliance with Commission. the procedure defined by an act of the Director of the Italian Revenue Agency.  The facility applies even to companies which have initiated a procedure for an arrangement with creditors aimed at continuing operations.

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? Tax Credits for medium  Companies that implemented the above-  Italian based companies,  In order to apply, companies:  To benefit from this facility, the  The facility is now companies mentioned capital increase are entitled, having 2019 revenues ‒ must not have fallen within the company must submit a specific available. following the approval of their 2020 between €5 million and €50 category of undertakings in request to the Italian Revenue financial statements, to a tax credit equal million, that have suffered difficulty as of 31 December Agency, by completing the "F24 to 50% of the losses exceeding 10% of an overall reduction of a 2019; form". net assets up to 30% (or 50% if the capital minimum of 33% in the  The tax credit can only be used increase is resolved and implemented amount of revenues in ‒ must be compliant with tax payments, environmental, in compensation, 10 days after during the first semester of 2021) of the March and April 2020, the capital increase, only after amount of the capital increase. compared to the same buildings and anti-mafia regulations and directors and the approval of the company's Distribution of reserves of any kind prior to period in 2019. 2020 financial statements and 1 January 2024 (or prior to 1 January shareholders must not have  The facility applies even to been definitively convicted, in by 30 November 2021. 2025 if the capital increase is resolved companies which have and implemented during the first semester the last five years, for tax initiated a procedure for evasion; of 2021) will cause the company to lose an arrangement the benefit. with creditors aimed at ‒ must not fall within the continuing operations. category of companies which have received and not repaid any aid deemed unlawful or incompatible by the European Commission. Additional guarantee  €1 billion fund to guarantee medium/long- Companies with a maximum  The guaranteed loans must  Application should be made The facility is now fund for portfolios of term loans made by financial institutions to number of 499 employees. finance research, development directly to financial available. medium-long term SMEs aimed at supporting research and and innovation projects and/or institutions, which must financing to SMEs for development and innovation projects investment programs. submit an application to the and/or investment programs. Guarantee Fund. research and development projects  The guaranteed loans must have a and investment duration of no less than 6 years and no programs more than 15 years.

Pool of Business  CDP, a state-controlled fund and deposit  Joint stock companies, even  The following criteria must be  For the Temporary Framework  The facility is now Assets allocated institution, is authorised to establish a pool those with listed shares: met by the company: fund, applications must be available.. exclusively to support of business assets allocated exclusively to ‒ having their registered ‒ without the facility, the submitted to professional the Italian productive support the Italian productive system by office in Italy; company risks losing its ability intermediaries (partners of CDP) providing for temporary investment, by 31 December 2021. The system by Cassa ‒ not operating in the to continue as a going including the granting of loans and concern; professional intermediaries Depositi e Prestiti (CDP) guarantees, the subscription for financial banking, financial or should verify that the “Patrimonio Rilancio” instruments, the acquisition of equity insurance sectors; ‒ it belongs to a strategic or requirements are met and send investments and the restructuring of ‒ having an annual high-tech sector, or has an the applications to CDP. companies with temporary equity or turnover of more than annual net turnover of more financial imbalances. €50 million. than €300 million, or falls within the 30% of companies

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available?  On a preferential basis, the allocated with the highest number of capital will be used for subscribing employees in the province of convertible bonds, participating in capital its registered office or increases and purchasing shares listed on production plant; the secondary market for strategic ‒ it has been unable to obtain transactions. financing on the markets at  The allocated capital will be used by means accessible conditions; of 3 different funds, as follows: ‒ it did not fall within the (i) “Temporary Framework” fund, for category of undertakings in companies which have suffered from difficulty as of 31 December losses because of the COVID-19 2019; emergency; ‒ it is not a State-owned (ii) “Strategic Investment” fund, to support company, with the exception companies’ business development; of: and i) companies where the public (iii) “Restructuring” fund, for companies participation is lower than suffering from a temporary asset and 10% of the corporate capital; financial deficits, but with adequate ii) listed companies. prospects for future profitability.  A cap of €2 billion applies to each intervention.  The State may guarantee the obligations assumed by CDP. Fund for the support of  €140 million fund aimed at supporting  Eligible companies must be  N/A.  How to apply has not been  The facility is not yet shut-down economic companies for which closure, for a total defined by a decree of defined yet. Terms and available. activities period of at least 100 days, has been Ministry for Economic conditions must be defined by a ordered between 1 January 2021 and 25 Development, adopted in decree of the Ministry of July 2021. agreement with Ministry of Economic Development, Economy and Finance. adopted in agreement with the Ministry of Economy and Finance. Direct financial support  CDP is allowed to grant direct loans to  Companies that satisfy the  The guarantee supported by the  Application should be made  The facility is now by means of CDP companies, with the state's counter- following two requirements: financing must be functional to: directly to CDP. available. guarantee up to 80% of CDP's exposures - annual turnover more - investments aimed at at market rates. than €50 million; research and development,  Such direct lending is reserved to  10% reduction of the innovation, protection and companies having an annual turnover company's turnover, enhancement of cultural greater than €50 million. compared to the heritage, promotion of tourism, environment, energy  Funding will preferably be granted in co- corresponding period of the efficiency, promotion of financing with the banking system with a previous year, because of the COVID-19 emergency. 66 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Italy

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? CDP share of between €5 and €50 million sustainable development, and a duration of up to 18 months. green economy; - initiatives for the growth, also by aggregation, of companies in Italy and abroad;  construction of works, installations, networks and equipment, intended for public utility initiatives. Measures aimed at  A fund of €10 million is established to grant  Innovative start-ups, as  The venture capital initiative  For the loan refinancing initiative,  The facilities are supporting innovative innovative start-ups non-repayable defined by law decree no. fund may invest in companies applications should be made to now available. start-ups and contributions to be used for the purchase of 179/2012, and innovative that have already been the Invitalia. innovative SMEs services provided by incubators, SMEs, as defined by law object of investment by  For the €10 million fund initiative, accelerators, innovation hubs and decree no. 3/2015. regulated/qualified investors on applications should be made to business angels. a date no earlier than 19 Invitalia.  A fund aimed at sustaining venture capital, November 2019; or that are the object of investment by  CDP Venture Capital SGR established by law no. 145/2018, is S.p.A. will select target provided to support investments in regulated/qualified investors who are performing a round of companies for the venture innovative start-ups' and innovative SMEs' capital initiative. Investments will share capital. This fund may invest up to €1 investment together with the fund. be made mainly through million in each target company. mandatory convertible bonds. Regulated/qualified investors can recommend innovative start- ups and innovative SMEs they invested into.  Fund for Technology  The Ministry of Economic Development is  Companies operating in the  Companies must operate in  The fund will be managed by  The facility is not yet Transfer authorised to set up a fund for technology field of research, innovative fields of national strategic Enea Tech Foundation. available. transfer aimed at promoting initiatives and start-ups and innovative interest, with priority for Investments shall be carried out investments useful for the exploitation and SMEs, defined as referred technologies related to by the Foundation either use of research results for Italian to above, and having been healthcare, information, green autonomously or in coordination companies, including the development and incorporated for no more economy and deep tech. with institutional or private industrial reconversion of the biomedical than 60 months. investors. sector towards the production of new drugs  How to apply has not been and vaccines to combat emerging as well defined yet. Terms and as widespread diseases, also with conditions must be defined by reference to innovative start-ups and Enea. innovative SMEs.  The resources of the fund will be used to purchase indirect participations in companies' risk and debt capital.

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? Fund to safeguard  The Ministry of Economic Development is  Companies with historical  In order to apply, companies  Application must be made to  The facility is now employment levels authorised to set up a fund to maintain brands of national interest must propose a restructuring Invitalia and to the Ministry of available. companies' employment levels and the and joint-stock companies program aimed at safeguarding Economic Development. continuation of their business activities, with at least 250 employment levels and the aimed at rescuing and restructuring employees. continuation of the activities of companies in economic and financial  Companies holding the business. difficulty. The facility must not exceed a strategic assets of national total amount of €10 million per company. interest. Financial support  Regions, Autonomous Provinces, Local  All companies, regardless  In order to apply, companies  Applications should be made  The facility is now provided by Local Authorities and Chambers of Commerce of their size. must not have fallen within the directly to the relevant local available. Authorities may adopt aid measures in favour of category of undertakings in authority of interest. companies in the form of: difficulty as of 31 December ‒ direct grants, tax and payment facilities 2019. or in other forms such as repayable  Save for direct grants and other advances, guarantees, loans and equity facilities of up to €1.8 million per investments, up to a maximum amount company. of €1.8 million per company;  The facility may not be ‒ guarantees on investment loans and cumulated with any other aid working capital loans, granted in favour granted by any other institution of companies either directly or through in the form of subsidised interest banks or other credit institutions. The rates for the same loan. duration of these guarantees which must  The facility shall not apply to be granted by 31 December 2021, is existing loans, except if there is limited to a maximum of six years; a legal obligation to extend the ‒ loans with subsidised interest rates to maturity of existing loans for companies. Directly or through banks or SMEs. credit institutions. Agreements must be signed no later than 31 December 2021 and shall be limited to a maximum of six years. Increase of public  Development Contracts, introduced into  All companies, regardless  Business programme for  Requests for access must be  The facility is now funding allocated to law by Article 43 of Law Decree No. 112 of their size. industrial development and submitted to the National available. relevant development of 25 June, 2008 and operational since environmental protection Agency for the Attraction of projects 2011, represent the main facilitation programmes must contain Investments and Business instrument dedicated to support large eligible expenditure of no less Development S.p.A. – Invitalia, strategic and innovative productive than €10 million. Managing Entity of the Facility. investment programmes.  Applications relating exclusively  The government has provided for an to processing and marketing of increase in public funding allocated for agricultural products must not be development contracts. less than €3 million.

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available?  Applications for tourism development programmes must not be less than €5 million.  Investments proposed by participating entities (including research, development and innovation programmes) must have a cost of not less than €1.5 million. Financial measures  To export credit activities in sectors  All companies of the • N/A.  This measure means that the  The facility is now relating to export credit affected by the COVID-19 crisis during the defence and cruise sector, Ministry of Economy and available. in the defence and current financial year, the government has regardless of their size. Finance can offer state tourism sector allowed the Ministry of Economy to offer guarantees in favour of SACE state guarantees for non-market risks in S.p.A. favour of SACE S.p.A. for approved transactions in the cruise sector for a maximum amount of €2.6 billion.  The total amount of the exposure retained by SACE S.p.A. and the exposure transferred to the State in this sector may not exceed a maximum share of 40% of the entire outstanding risk portfolio retained by SACE S.p.A. and transferred to the State.  In relation to the cruise sector, the following operations are also guaranteed by the State: ‒ operations already authorised; ‒ operations whose applications have already been submitted to SACE S.p.A.; ‒ operations already decided by SACE S.p.A. before 9 April 2020, up to a maximum amount of €2.6 million.  For the defence sector, the maximum amount of the guarantee is equal to €5 billion. The guarantee may be granted only with reference to transactions with a sovereign counterparty. The total amount of the exposure retained by SACE S.p.A. and the exposure transferred to the State in this sector may not exceed a maximum share of 29% of the entire outstanding risk

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? portfolio retained by SACE S.p.A. and transferred to the State. Measures aimed at  In order to promote the internationalization  All enterprises acting in  Companies involved in strategic  Applications can be submitted  The facility is not supporting the Italian of the Italian production sector and strategic sectors for the sectors and with an through CDP's website. currently available. production system's favouring Italian companies' commitments Italian economy. international focus.  Due to exhaustion of resources, internationalisation in strategic sectors for the Italian economy, access to the measure has SACE S.p.A. assumes the commitments been temporarily suspended. arising from the insurance and guarantee New applications may be business for non- market risks, as defined submitted starting from 28 by European legislation, to the extent of October 2021 (and up to 3 10% of the principal and interest of each December 2021). commitment.  The remaining 90% of the same commitments is assumed by the State, without any solidarity constraint. Revolving Fund for  Fund for exports, established by law  Companies exporting  N/A.  Application must be through the  The facility is not exports decree no. 251/1981, set up by outside of the EU territory SIMEST website. currently available. Mediocredito Centrale, a bank which is part and companies operating in of Invitalia's group, which guarantees low- the tourism sector. interest loans granted by credit institutions in favour of companies operating in the export and tourism sectors and grants non- refundable co-financing up to 10% of loans granted under art. 2, para. 1, of law decree no 251/1981.Until 31 December 2021 non- repayable co-financing may be granted up to a limit of 25% of the financing granted pursuant to article 2, paragraph 1, of decree-law no. 251 of 28 May 1981,  In accordance with European legislation on State aid, the maximum limits for subsidised loans, for which application is submitted by 31 December 2021, may be increased up to double the amount. Moratorium on banks  There is a moratorium on banks calling  SMEs whose debt  SMEs must have suffered a  Eligible businesses must submit • The facility has calling default default on SMEs owing debt to banks or exposures are not classified temporary shortage of liquidity a self-certification declaring to expired. financial intermediaries may obtain a as bad credit exposures as a direct consequence of the have suffered a temporary moratorium in case of suffering of under the applicable COVID-19 emergency. shortage of liquidity as a direct shortage of liquidity due to the COVID-19 legislation at 17 March consequence of the COVID-19 crisis. The moratorium has been extended 2020. emergency. until 31 December 2021 for principal  Eligible companies must submit payments only. an application by 15 June 2021. 70 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Italy

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? Revaluation of  Revaluation of business assets and equity  Companies operating in  N/A.  The measure applies  The provisions are company's assets investments, with the exclusion of essential hospitality and spa sectors. automatically. now available. buildings related to the business activities.   The revaluation may be carried out in one or both of the financial statements related to financial years 2020 and 2021 and must cover all assets belonging to the same category.  No tax is due on the higher values of the revalued assets and equity investments.  The measure also applies to leased properties for hotel use, and to properties under construction, renovation or completion. Converting certain  Upon payment of a 1.5% fee that is  All companies, regardless  For the purposes of this scheme  Conversion of DTAs into tax  The tax credit is deferred tax assets deductible for corporate income tax of their size, other than non-performing loans are credits is subject to the exercise available for set-off (DTAs) into tax credits purposes, DTAs arising from tax losses or insolvent companies. defined as financial or by the company, by the end of from the time when allowances for corporate equity may be commercial receivables with at the financial year in which the assignment of the converted into tax credits. least a 90-day payment delay. assignment of the credits takes receivables from  Measures aim to allow companies to avoid effect, of the election under the which it originates shortage of liquidity by reducing financial Article 11 of Law Decree No. takes effect. assets required for paying taxes and social 59/2016, if not already security contributions. exercised, and the consequent payment of the 1.5% fee.  The conversion is limited to an amount not exceeding 20% of the nominal value of  The tax credit obtained from the non-performing loans transferred to a third conversion of advance tax must party in exchange for consideration no later be disclosed in the tax return for than 31 December 2020 (even if not the tax period 2020. booked in the financial statement).  A cap of €2 billion receivables applies to third party transfers made by companies, which are members of the same corporate group. Financial incentives to  Financial measures for investment projects  All companies organized as  The facility may also cover  Online application on the  The facility is not companies in order to aimed at expanding or reconverting corporations, regardless of investments incurred before the website of Invitalia. currently available. promote the production business activities for the production and their size. submission of the application,  and the supply of supply of medical devices. but after the publication of the Law Decree no. 18 dated 17 medical devices and  Invitalia has been allowed to provide March 2020 are also eligible. protective equipment financing through non-repayable grants and operating grants, as well as subsidised loans, to companies manufacturing and 71 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Italy

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? supplying medical devices, such as masks, respirators and other protective devices.  A low-interest, zero-interest loan is provided to cover 75% of the investment project, repayable over eight years. The maximum possible benefit amounts to €800,000.  The subsidised loan may turn into a non- repayable loan in variable percentages depending on the speed of implementation of the project.  Financial aid for the production of COVID- 19 related products may be given also by local authorities. Tax credit for research  Companies carrying out research and  Companies carrying out  All costs incurred for  The tax credit is reportable in  The measure is now and development for development of innovative drugs, research and development fundamental research, industrial the tax return To benefit from available. vaccines and including vaccines, are entitled to a tax for innovative drugs, research, experimental this facility, the company could pharmaceuticals credit of 20% of the costs incurred from 1 including vaccines. development and feasibility also submit a specific request to June 2021 to 31 December 2030. studies necessary for the the Italian Revenue Agency. provided that the beneficiary of the aid research and development of undertakes to grant non-exclusive the project, as referred to by licenses under non-discriminatory market Article 25 of Commission conditions to third parties in the European Regulation (EU) No 651/2014, Economic Area.The tax credit is available are eligible. up to a maximum amount of €20 million per year for each beneficiary and may be used for offsetting purposes in three equal annual instalments, starting from the year following that in which it accrues. Tax credit for  The Italian government has granted a tax  All businesses, regardless  The following expenses are  Companies must communicate  The facility is now sanitisation purposes credit equal to 60% of the costs of of their size. eligible for the tax credit: the costs of sanitisation borne available. sanitisation of the work environments and during 2020 to the Italian - the sanitizing of work  work tools incurred by businesses for the environments; revenue Agency by 30 June whole year 2020.The tax credit cannot 2021. exceed €60,000 per taxpayer beneficiary of - the administration of COVID- 19 tests;  Tax credit for June, July, August the facility. For companies operating in 2021 sanitation costs is premises open to the public, the maximum - the purchase of PPE; reportable on the tax return for amount of the tax credit is €80,000 per - the purchase of cleaning and the business year in which the company. disinfecting products; costs are incurred.  The Italian government has also granted a - the purchase of other safety tax credit of 30% of the costs of sanitizing devices; work environments and work tools for the

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? months of June, July, August 2021. To  the purchase of devices to this end, the government has allocated ensure workers safety €200 million for the year 2021, and the tax distances. credit is for a maximum of €60,000 for each beneficiary. Financial support for A tax credit of 30% of the value of the  Companies operating in the  Eligible companies must  Companies must submit a  The facility is not yet fashion and textile inventory exceeding the average of the textile and fashion operate in one of the economic specific communication to the available. industry value recorded in the 3 tax periods prior to industries. sectors corresponding to the Revenue Agency. the tax period when the companies are ATECO codes listed in the  Applications can be submitted entitled to the facility, is available. decree of the Minister of via a specific platform available Economic Development dated on Invitalia’s and on the Ministry 27 July 2021. of Economic Development’s websites from 22 September 2021. Tax credit for leases of  Companies with revenues not exceeding  Companies that have  Companies must have suffered  The tax credit can be used in  The facility is now non-residential €5 million in the tax period prior to signed, as lessee, a lease a decrease in turnover or fees the tax return for the period in available. buildings 19 May 2020 are granted: agreement relating to a of at least 50% compared to the which the rent was paid or to (i) a tax credit of 60% of the amount of building for commercial same month of the previous tax offset outstanding taxes. rent, leasing or concession of real estate use. period. for non-residential use intended for the performance of industrial activity; (ii) a tax credit of 30% in the case of service contracts for complex services or business leases, including at least one non-residential property intended for the performance of industrial activity.  For retail companies with revenues exceeding €5 million in the tax period prior to 19 May 2020 the above tax credits are respectively granted for the amounts of 20% and 10%.  For retail companies the tax credits for the amounts paid in relation to the period January 2021 - May 2021 are granted for the amounts of 40% and 20% in the following cases: (i) such retail companies have revenues exceeding €15 million in the second tax period prior to 2021; (iii) the average monthly turnover for the period April 1, 2020 - March 31, 2021 is at

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? least 30% less than the amount for the period April 1, 2019 - March 31, 2020 period in the previous year;  If such retails companies have started their activities after 1 January 2019 the above requirements do not apply. Suspension of payment  This financial measure provides for the  Companies with revenues  N/A.  The suspension applies  The measure is now of the Regional Tax on exemption from (i) the payment of the up to €250 million. automatically. available. Productive Activities balance of IRAP related to the year 2019 (IRAP) and (ii) the first instalment, equal to 40%, of the advance payment of IRAP related to the year 2020. Guarantee fund for  A guarantee fund of €2.5 billion is made  Italian or foreign banks and  Guarantees exceeding €200  SACE S.p.A. carries out the  The facility is now projects related to available by SACE S.p.A. to Italian and financial operators, million must be approved by a preliminary activity aimed at available. "Green New Deal" foreign banks and other intermediaries subscribers of bonds, decree of the Minister of identifying the beneficiaries of financing: financial bills, debt Economy and Finance in the guarantee fund. ‒ projects aimed at transitioning towards securities and other agreement with the Minister of a clean and circular economy financial instruments. Economic Development and Minister of Environment, Land ‒ projects aimed at transitioning towards and Sea Protection. a sustainable and intelligent mobility. ‒ The SACE Green Guarantees are issued in the form of an unconditional and irrevocable guarantee, for a maximum of 80% of the amount financed. Financial support to  The Ministry of Economic Development is  Companies with more than  Eligible companies must:  In order to access the fund, The facility is not large companies authorised to set up a fund to support large 250 employees and an ‒ be in a situation of temporary eligible companies must send a available yet. enterprises administered by Invitalia, annual turnover of more financial crisis due to Covid- specific application form to Terms and aimed at allowing companies in a situation than €50 million, and/or an 19; Invitalia enclosing the recovery conditions must be of temporary financial difficulty to continue annual balance-sheet business plan and any other defined by a decree their activities. greater than €43 million, ‒ be regularly registered in the of the Minister of Companies Register; documentation useful for its  The fund operates by granting - by 31 that: assessment. Economic December 2021 - aid in the form of ‒ have prospective cash ‒ have legal and operational Development subsidised financing, to be repaid within a flows inadequate to headquarters in Italy;  Specific terms and conditions to adopted in maximum period of 5 years. regularly meet planned ‒ not have received and, apply must be defined by a agreement with the decision of the General Director Minister of Economy  The total amount of the subsidised obligations; or subsequently, not reimbursed either aid identified as illegal for subsidies to companies of the and Finance. The financing for each beneficiary company ‒ are undertakings in Ministry of Economic facility must also be must not exceed, alternatively: difficulty pursuant to EU or incompatible by the EU Commission. Development. authorised by the - twice the company’s annual wage bill legislation, but present European for 2019 or for the last available prospects for business Commission. financial year; recovery. Companies that 74 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Italy

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the eligible? for applying? finance be available? - 25% of the company’s total sales in were already 2019. undertakings in difficulty as of 31 December 2019, are not eligible. Companies in extraordinary administration.

Key Contacts

Ian Tully Daniela Sabelli Partner, Milan Partner, Milan T +39 02 12 41 27 700 T +39 02 12 41 27 700 E [email protected] E [email protected]

Fabrizio Vismara Partner, Milan T +39 02 12 41 27 700 E [email protected]

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Financing Facility Support What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available? Liquidity package  Guarantee and suretyship for loans drawn  All companies, except for  The loan must have been  Businesses will need to apply  Available by For more information, by entrepreneurs up to 80% of the micro and small entered into after 1 March with Bank Gospodarstwa December 31, 2020 outstanding loan amount (up to PLN200 enterprises (in the meaning 2020. Krajowego (BGK) via the with the possibility to please click here million). of respective EU crediting bank. extend past that regulations)  See the Commission Recommendation of 6 May 2003, setting out the definition of micro, small- and medium-sized enterprises and respective Polish law implementing these. Guarantee package  Guarantee for loans (up to 80% of the  Micro, small- and medium-  The company must be based  Available (amended) amount outstanding). sized enterprises (in the in Poland.  Up to 39 months. meaning of respective EU  The company cannot have For more information, regulations). please click here  No commission for the first year. arrears of tax and/or social security payments as at February 1, 2020. Extension of insurance  Extension of contract insurance  All enterprises (and their  All enterprises (and their  Applications need to be made  Available. of export contracts guaranteed by the state. subsidiaries) based in subsidiaries) based in Poland to Korporacja Ubezpieczeń Poland exporting Polish exporting Polish products or Kredytów Eksportowych products or making direct making direct investment (KUKE). investments abroad. abroad.  Entities providing financial  Entities providing financial instruments. instruments.  Polish members of  Polish members of consortiums performing consortiums performing export export contract. contract.  The requirement of product origination may be waived in some cases. Trade receivables  KUKE GAP EX is an insurance facility    The agreement will be  At least until the end insurance from KUKE aimed at companies with credit insurance concluded and managed of 2020 (KUKE GAP EX and that want to increase their export online KUKE GAP EX +) revenues. backed by State  KUKE GAP EX+ can be used by Treasury; companies whose existing credit limits

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available? For more information, have been cancelled or have been refused please click here cover for new buyers. KUKE does not require cyclical turnover reports and other formalities have been kept to a minimum. The assessment of buyer risk during the performance of the sales agreement is free of charge. For the sake of full transparency and convenience, the premium is calculated monthly based on the amount of the credit limit granted (for KUKE GAP EX it is 2% per annum, for KUKE GAP EX+ it is 4%). The value of KUKE GAP EX credit limit for a buyer under one insurance policy may not exceed the limit granted by the primary insurer, but not more than PLN 5 million. In KUKE GAP EX+ the maximum limit is PLN 500 000. Loans to micro  Up to PLN5,000.  Micro enterprises (in the  The borrower must have  Apply to Powiatowy Urząd  Available. enterprises.  Loan period up to 12 months. meaning of respective EU conducted business operations Pracy. regulations), including self- prior to April 1, 2020 For more information,  No interest payments for three months. employed. please click here  The borrower must not  The loan shall be written off, if the decrease employment within a borrower continues to conduct business period of three months operation after three months of the loan following the loan. grant.  Is not a financial firm (credit, insurance, collective investment or similar services). Support scheme for  Liquidity financing through loans or bonds  Enterprise not being micro  After 1 February 2020, the  File initial application with  Available through the large enterprises for max. four years, up to PLN1 enterprise or small- and applicant suffered 25% Polski Fundusz Rozwoju at. website of Polski billion.(until December 31, 2020) medium-sized enterprises decrease in revenue in https://pfrsa.pl/tarcza250. Fundusz Rozwoju.  Preferential loans (up to 750 PLN) for (in the meaning of comparison to preceding max. 4 years (may be partially written off) respective EU regulations). month or any analogous month depending on loss and maintenance of employing more than 249 in preceding year because of employment – max. 75% of the actual loss employees (except for the COVID-19 (as defined in due to Covid-19 however, no more than owner) applicable legislation). 75% of the loan.(available until December  Small and medium  Is not a financial firm (credit, 31, 2020) enterprises employing insurance, collective  Equity injection by subscription for new more than 150 employees investment or similar services) shares, bonds, notes or loans on market and with the turnover for 77 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Poland

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available? terms – up to PLN1 billion (until June 30, 2019 exceeding PLN 100  Lost the ability to produce or 2021) million whose financial gap provide services or receive exceed PLN 3.5 million or products or services by financing concerns EU contracting entities due to the financing program and lack of availability of who had first exhausted all components or resources in financing opportunities connection with COVID-19. within the MŚP Program or  Do not receive payments on the financing concerns the sales as a result of COVID-19 Utilities Program;. in an amount exceeding 25% of the amount due.  Due to disruptions in the functioning of the financial market, do not have access to the capital market or credit limits in connection with new contracts.  Are participants in the Sector Programs connected with COVID-19  Has tax residence within EEA country, is registered in the commercial register in Poland and whose ultimate beneficial owner does not have registered office in one of the offshore jurisdictions (as defined by Council conclusions on the revised EU list of non- cooperative jurisdictions for tax purposes (2020/C 64/03) (exceptions possible if UBO undertakes to transfer it seat to EEA country within 9 months following grant of financing)  Carried out business activity as of 31 December 2019  As of 31 December 2019, was not in default in payment of taxes or social security payments

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available?  Is not in liquidation, insolvency or in restructuring (under Restructuring Law)  does not operate in the field of: ‒ a. products or services that may result in restriction or violation of individual freedom and / or human rights; ‒ doubtful areas for ethical and moral reasons.  In order to benefit from this program all the appropriate approvals from the competition protection authorities must be obtained. Liquidity loans offered  Loans to finance working capital  SMEs (in the meaning of  Annual turnover exceeding  Apply online with Agency for  Available by Agency for PLN800,000 – PLN5 million for six years, respective EU regulations). PLN4 million. Industrial Development Industrial with 15 months grace period. The loan  Having positive EBITDA and (Agencja Rozwoju Development. For more funds are disbursed either as a one-time profit for 2019. Przemysłu). payment or in tranches. information please  Carried out business for 12 click here  Financial of leasing of cars (up to PLN5 preceding months. million, six years).  Full accountancy.  Loans to finance remuneration of employees (paid to employees directly) up to two years, with 12 months grace period. The loan funds are disbursed either as a one-time payment or in tranches..

Other Financial Support What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available? PIT taxpayers' tax relief  PIT taxpayers who suffer loss in business  PIT taxpayers carrying  Taxpayer suffered tax loss in  File corrected 2019 tax return • Available activity in 2020 because of COVID-19, may out commercial activity 2020 and suffered a 50% with the relevant authority. decrease 2019 income by the amount of

79 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Poland

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available? 2020 loss, but not by more than by PLN5 who are taxed based on decrease in 2020 revenue, million. 19% linear income tax compared to 2019 revenue. Employment protection  Protection of employment – a 50% payment  All enterprises  Entrepreneurs that (i) are not  Applications should be made  Available 1 of the minimal statutory salary for each insolvent; (ii) have not to Wojewódzki Urząd Pracy. employee affected by COVID-19 due to defaulted in paying social economic downturn. security payments for 2019 Q3  Minimal salary in 2020 was PLN2,600 per or taxes; and (iii) suffered month. slowdown because of COVID- 19 (in the meaning of the  Support eligible for max. 3 months following applicable legislation). the application.  A decrease in economic turnover is understood as a decrease in sales of goods or services, in quantitative or valuable terms. Employment protection  Protection of employment – a 40% payment  All enterprises  Entrepreneurs that (i) are not  Available 2 of the average national salary for each insolvent; (ii) have not employee affected by COVID-19 i.e. defaulted in paying social suffering decrease of working hours (up to or security payments for 2019 Q3 20%) of minimal salary where the employee or taxes; and (iii) suffered working hours have decreased, not more slowdown because of COVID- than 50% of the minimal statutory salary. 19 (in the meaning of the  Minimal salary in 2020 was PLN2,600 per applicable legislation). month.  A decrease in economic  Support eligible for max. 3 months following turnover is understood as a the application. decrease in sales of goods or services, in quantitative or valuable terms.  Relate to employees not covered by Employment Protection 1 Real estate tax  Real estate tax exemption for part of 2020  All enterprises.  All entrepreneurs, as defined in  To be confirmed by Commune  Available. exemption (local tax) for buildings and structures used for the local Commune Council Council. commercial activity. resolution, who suffer liquidity problems because of COVID- 19. Waiver of interest on  Waiver of default interest on social security  All payers of social  Application to be filed during  File application with local  Available delayed social security premiums payment where payments are security premiums. the state of epidemic (or social security office. premiums payments delayed or are being paid in instalments. epidemic emergency) or within  If the application for the payment to be 30 days following the prolonged and/or paid in instalment is revocation of state of epidemic or epidemic emergency. 80 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Poland

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available? granted, there is no prolongation fee on the amounts of prolonged tax payment.  Prolongation fee is half the tax penalty interest. Waiver of interest on  Waiver of prolongation on tax payments  All taxpayers.  Application to be filed during  File application with local tax defaulted tax payments where payments are delayed or are agreed the state of epidemic (or office. to be paid in instalments. epidemic emergency) or within  If application for payment to be prolonged 30 days following the and/or paid in instalment, is granted, there is revocation of the state of no prolongation fee on the amounts of epidemic or epidemic prolonged tax payment. emergency.  Further, the Minister of Finance has been empowered to issue a regulation waiving collection of penalty interest on unpaid taxes defining territory, timeframe and groups of taxpayers to whom such waiver will apply.  Some commercial banks will agree changes  All enterprises.  Loans entered into before 8  Businesses will need to  This measure is to the terms of loans extended to March 2020. contact their bank directly. discretionary. entrepreneurs.  Change to loan term is justified  The applicant and the by financial position of the bank need to agree applicant. terms.  Eligibility assessed by the bank before 30 September 2019. IP BOX preferential 5%  5% preferential tax rate on income from  CIT taxpayer, PIT  CIT taxpayers achieving  after the end of the tax year in rate for taxes on income qualified IP rights during the tax year taxpayer settling on qualified income from the annual tax return from IP used to  the solution will also be available in a general terms or qualifying intellectual property counteract the Covid-19 situation where the taxpayer does not yet according to a uniform rights in the tax year that 19% income tax. started before January 1, 2020 pandemic have a qualified intellectual property right or the prospect of obtaining it, provided that an and will end after December application for such protection is submitted 31, 2019 or started after or submitted to the competent authority, December 31, 2019 and before within 6 months from the end of the month, 1 January 2021. for which when calculating the advance tax,  PIT taxpayers earning qualified the taxpayer used 5 percent tax rate. income from qualified intellectual property rights in 2020. Deduction from the  Up to 200 percent of the value of the  Anyone who taxes their  one cannot take into account  With the relevant tax office  Available for income of the donations donation in cash or in kind will be deductible: income on general the value of the donation when donations made made to combat Covid-  For donations made until April 30, 2020 - a principles according to paying lump-sum income tax in between January 1 19 pandemic deduction of up to 200% donation value, the tax scale or the form of a tax card, paying according to the uniform lump-sum income tax on 81 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Poland

What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available?  Donations made in May 2020 - a deduction 19% tax rates (for capital funds, paying tax on the and September 30, is made of an amount corresponding to business income). sale of real estate. 2020 150% donation value,  A taxpayer who taxes  One will not be entitled to the  Donations made from June 1, 2020 to income with a lump sum relief if the expenses have September 30, 2020 - a deduction is made on recorded income. been classified as tax for the amount corresponding to the value of  CIT taxpayer. deductible costs or have been the donation. deducted from taxable income in another form or have been returned to the taxpayer in any form.  In the case of a return of a donation, the recipient is obliged to provide the tax office with information about the donation returned to the taxpayer, within one month from the date of return. No need to increase the  One does not have to increase the tax base  All CIT and PIT tax  Those that suffer negative income on which the when calculating advance income tax in payers economic consequences due 2020 advances are 2020 (from March to December) by the so- to COVID-19 and obtain calculated with called bad debt, i.e. unpaid trade receivables revenues that are at least 50% after 90 days from the date of expiry of the lower than the revenues outstanding trade payment deadline. obtained in the corresponding receivables ("bad debt")  At the same time, as a taxpayer (creditor) accounting period in the who has a claim in this respect, one retains previous year. And if one the right to reduce their income by the started running a business in amount of the claim. 2019, it is in relation to the average income from non- agricultural business activity obtained that year. The 50% drop in revenue condition does not apply to taxpayers who:  used a form of taxation in 2019 for which revenue is not determined,  - started running a business in the last quarter of 2019 and did not receive any business income in this period,

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available?  - started their operations in 2020  Subvention for support  Financial support in form of subvention for  As of 30 September  the revenue in one of three File, by 28 February 2021, the for maintenance of support of employment – up to PLN 2,000 2020 enterprises carrying months preceding filing the application in electronic form to employment in certain monthly per one employee, for period of 3 out business in sectors application for support Dyrektor of Wojewódzki Urząd sectors months listed in the Act of 9 decreased by at least 40% in Pracy December 2020 tested comparison to revenue in as of September 30, analogous month of preceding 2020 year  Subvention for covering  Financial support in form of subvention for  Small and  the revenue from eligible File, by 31 January 2021, the operational costs covering operational costs up to PLN 5,000 microenterprises (in the acvitity in October or application in electronic form to meaning of respective November 2020 was at least Dyrektor of Powiatowy Urząd EU regulations)) carrying 40% lower thean revenue in Pracy out business in eligible October or November 2019 sectors as of 30 September 2020  Waiver of social  Waiver of social security premiums and  All enterprises registered  The revenue from eligible security premiums health fund premiums for period 1 July 2020 as premium payers unitl activities in the first month for – 30 September 2020 30 June 2020, carrying which the application is filed, is out business in sectors 75% lower than reveue in listed in the Act, and corresponding month in 2019 registered 10-49 employees for social security  Waiver of social  Waiver of social security premiums and  All enterprises registered  The revenue from eligible security premiums health fund premiums for period 1 November as premium payers unitl activities in November 2020 is 2020 – 30 November 2020 30 June 2020, carrying at least 40% lower than reveue out business in sectors in November 2019 listed in the Act, and registered 10-49 employees for social security

Key Contact

83 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Poland

Marcin S. Wnukowski Partner, Warsaw T +48 22 395 5503 E [email protected]

84 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Slovakia Financing Facility Support What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available?

Deferral of instalments  Deferral of instalment payments under  Consumers, small  A debtor cannot already be in  File an application with the  Applications can be payments loan agreements with consumers, small employers (an employer delay with instalment payments respective creditor (a bank or filed with the banks employers and entrepreneurs or under a with less than 250 under the loan for more than other entity, e.g. a leasing until the emergency guarantee for such loans for a maximum employees and with an 30 days prior to applying for company) that provided the situation in Slovakia of nine months. The application can be annual turnover not deferral. loan. ends or the LEX filed just once. exceeding € 50 million) and  As of 29 February 29, 2020, KORONA law entrepreneurs. the debtor was not in delay expires.Expired as of with instalment payments of July 01, 2021. another loan provided by the same creditor in the amount exceeding €100 for more than 30 days.  The application is filled in properly and contains all information.  The debtor should not be considered to be in default (as defined by Article 178 of the Regulation 575/2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012. Anti-Corona Guarantee  The state will provide state guarantee for  All enterprises (both SMEs  The applicant is not a person  An entrepreneur must submit  Relevant Program 2 – State loans provided by Slovak commercial and large). authorised to recruit for a a request with a commercial documentation can guarantee for loans banks. The guarantees will be provided via  All financial institutions with remuneration or temporary bank that participates in the be found at provided by Slovak Investment Holding, a. s. ("SIH") a valid banking license and employment agency. Anti-Corona Guarantee https://www.sih.sk/en/ up to 90% of the principal amount (loans Program. commercial banks authorisation to provide  No outstanding payments stranky/investicie/sih- for small and medium-sized enterprises) loans in the Slovak towards the Social Insurance  More details can be found at antikorona-zaruka and EXIMBANKA SR up to 80% of the Republic can participate in and the Health Insurance, for https://www.sih.sk/en/aktuality principal amount (loans for large the program. more than 90 days. /five-more-commercial-banks- enterprises).  No bankruptcy or restructuring joined-the-sih-anti-corona-  SIH will provide state guarantees for loans has been initiated against the guarantee-2-scheme up to €2,000,000; EXIMBANKA for loans company.  More details can be found at from €2,000,000 to €20,000,000.  The company has to fulfil other https://www.eximbanka.sk/slo  The interest rates for loans provided to conditions of the bank. venska-verzia/o-nas/aktuality- micro-sized enterprises will be up to 3.9% a-udalosti/aktuality/lepsi- p. a., the interest rates for loans provided  Should the company preserve pristup-slovenskych- to other enterprises will be up to 1.9% p. a. its employment rate as podnikatelov-kantikorona- specified in the loan zarukam-eximbanky-sr-vdaka- agreement, the fee for state zlepsenym-podmienkam-na-

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What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available?

 The state guarantee fee subsidy will be guarantee will be covered by odpustenie-poplatku-za- available upon the fulfilment of the state. zaruku..html?page_id=228783 requirements.  Interest rates are limited to  Enterprises may request for various state micro-enterprises at 3.9% p.a. support measures, successful application and for other enterprises for for state liquidity support does not exclude 1.9% p.a. eligibility of applications for other state  Loans from €2 million to €20 measures. million, with maximum interest  Currently eleven (11) commercial banks rate at 1,9% p.a. with tenor (UniCredit Bank, VÚB, Slovenská from 2 to 6 years. sporiteľňa, Tatra banka, ČSOB, OTP Banka, BKS Banka, Oberbank , SZRB, Poštová banka and J&T bank) participate in the program. SIH Anti-Corona Capital  Innovative SME companies may apply  All innovative SME  The maximum amount of  The application and more  Immediately. to Support Innovation- with SIH for a convertible loan with a tenor companies meeting certain principal and accrued interest details can be found at SIH Focused Companies either 18 or 36 months with the maximum other financial thresholds. at maturity may not exceed antikorona kapitál - Výzva |  The application had Affected by COVID-19 amount of €645,000 (for 36-month €714,000. Slovak Investment Holding, a. to be submitted by Pandemic s. May 19, 2021. maturities) and €714,000 (for 18-month maturities) 0 and the minimum amount is €200,000.  The amount of available loan equals either 1x revenues in 2019 or annualized revenues in 2020 (calculated on monthly or quarterly basis); or  2x personal costs in 2019 or annualized personal costs in 2020 (calculated on monthly or quarterly basis);

Other Financial Support What help is available? What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance eligible? for applying? be available?

The state's  PHASE 3 - First Aid project++:  Companies that have been  Employee cannot be in notice  The application is available at  Immediately contributions to cover Employees shall be entitled to ordered to close due to the period. https://www.pomahameludom.sk/. salaries compensation for wages in the state's measures related to amount of 80% or 100% of their COVID-19.  As of July 01 2021, the scope average earnings, at least in the of financial aid will depend on amount of minimum wage; the the current situation in each maximum amount is €1,100. region of Slovakia according to 86 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Slovakia

 PHASE 2 - First Aid project+: so called „ Covid traffic lights Employees shall be entitled to risk table ". compensation for wages in the amount of 80% of their average  PHASE 3: In case of earnings, at least in the amount of unfavourable epidemiological minimum wage; the maximum situation III. and IV, degree amount is €1,100. warning the aid will be paid according to the rules of the  PHASE 1 - First Aid project: First aid ++ project. Burgundy Employees shall be entitled to or black colour on the "Covid compensation for wages in the traffic lights risk table". amount of 80% of their average earnings, at least in the amount of  PHASE 2: In case of an minimum wage; the maximum improving epidemiological amount is €1,100. situation, I. and II. degree  PHASE 0 - no aid is applied warning, the aid will be paid according to the rules of the First Aid + project. Red or pink colour on the Covid traffic lights risk table.  PHASE 1: No national Covid traffic lights risk table and at the same time there are at most 39 districts in the level of monitoring (green colour) contributions will be paid on the basis of conditions from the original First Aid project.  PHASE 0: The auxiliary scheme will not apply if none of the districts in in I. to IV. warning level according to the Covid traffic lights risk table and at the same time at least 40 districts are in Monitoring level (green)  More information regarding Covid traffic lights risk table can be found here: https://korona.gov.sk/wp- content/uploads/2021/05/3_co vid-automat-signalizacny- system-2v4.pdf

The state's  PHASE 3 - First Aid project++:  Entrepreneurs that were  Entrepreneur that has no other  The application is available at contributions to cover Lump-sum contribution in the ordered to close due to the income or suspended licence https://www.pomahameludom.sk/. lost revenues following amounts depending on and was participating in

87 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Slovakia

the drop in revenues for the period state's measures related to pension and sickness from October 01,.2020 COVID-19. insurance policy. − 20%-39.9% – € 420  As of July 01 2021, the scope − 40%-59.99% – € 600 of financial aid will depend on − 60%-79.99% – € 780 the current situation in each region according to so called „ − 80% and more – € 870 Covid traffic lights risk table ".  PHASE 2 - First Aid project+:  PHASE 3: In case of Lump-sum contribution in the unfavourable epidemiological following amounts depending on the situation III. and IV, degree drop in revenues for the period from warning the aid will be paid October 01,.2020 according to the rules of the − 20%-39,99% - € 270 First aid ++ project. Burgundy or black colour on the Covid − 40%-59,99% - € 450 traffic lights risk table. − 60%-79,99% - € 630  PHASE 2: In case of an − 80% and more - € 810 improving epidemiological  PHASE 1 - First Aid project: situation, I. and II. degree warning, the aid will be paid Lump-sum contribution in the according to the rules of the following amounts depending on the First Aid + project. Red or drop in revenues for the period from pink colour on the Covid traffic October 01,.2020 lights risk table. − 20%-39,99% - € 180  PHASE 1: No national Covid − 40%-59,99% - € 300 traffic lights risk table and at − 60%-79,99% - € 420 the same time there are at − 80% and more - € 540 most 39 districts in the level of monitoring (green colour)  PHASE 0: no aid is applied contributions will be paid on the basis of conditions from the original First Aid project.  PHASE 0: The auxiliary scheme will not apply if none of the districts in in I. to IV. warning level according to the Covid traffic lights risk table and at the same time at least 40 districts are in Monitoring level (green).  More information regarding Covid traffic lights rick table can be found here: https://korona.gov.sk/wp- content/uploads/2021/05/3_co

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vid-automat-signalizacny- system-2v4.pdf 11

The state's  Employer can choose between:  Employers, including  Conditions are available at  The application is available at contributions to  PHASE 3 - First Aid project++: entrepreneurs that maintain https://www.pomahameludom. https://www.pomahameludom.sk/. salaries Contribution in the amount of 80% employees despite interruption sk/. or restriction of their business. or 100% of the total cost of the  As of July 01 2021, the scope work (including social and health of financial aid will depend on insurance contribution, taxes), the current situation in each maximum €1,100 per employee. region according to so called  Lump sum in the amount "Covid traffic lights risk table". depending on the drop in revenues:  PHASE 3: In case of unfavourable epidemiological o 20%-39.9% – € 420 situation III. and IV. degree o 40%-59.99% – € 600 warning the aid will be paid o 60%-79.99% – € 780 according to the rules of the First aid ++ project. Burgundy o 80% and more – € 870 or black colour on the Covid  PHASE 2 - First Aid project+: traffic lights risk table. Contribution in the amount of 80% of the total cost of the work  PHASE 2: In case of an (including social and health improving epidemiological insurance contribution, taxes), situation, I. and II. degree maximum EUR €1,100 per warning, the aid will be paid employee. according to the rules of the First Aid + project. Red or  Lump sum in the amount pink colour on the Covid traffic depending on the drop in lights risk table. revenues: o 20%-39.9% – € 270  PHASE 1: No national Covid traffic lights risk table and at o 40%-59.99% – € 450 the same time there are at o 60%-79.99% – € 630 most 39 districts in the level of o 80% and more – € 810 monitoring (green colour) contributions will be paid on  PHASE 1 - First Aid project: the basis of conditions from Contribution in the amount of 80% the original First Aid project. of the total cost of the work (including social and health  PHASE 0: The auxiliary insurance contribution, taxes), scheme will not apply if none maximum €880 per employee. of the districts in in I. to IV.  Lump sum in the amount warning level according to the depending on the drop in Covid traffic lights risk table revenues: and at the same time at least 40 districts are in Monitoring o 20%-39.9% – € 180 level (green). o 40%-59.99% – € 300

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o 60%-79.99% – € 420  More information regarding o 80% and more – € 540 Covid traffic lights risk table can be found here:  PHASE 0: no aid is applied https://korona.gov.sk/wp- content/uploads/2021/05/3_co vid-automat-signalizacny- system-2v4.pdf 12

o Contribution to income  PHASE 3 - First Aid project++:  Entrepreneur whose business  Conditions are available at  The application is available at Lump-sum contribution of € 360 was interrupted or restricted. https://www.pomahameludom. https://www.pomahameludom.sk/. sk/.  PHASE 2 - First Aid project+:  Limited liability companies with Lump-sum contribution of € 315 a sole shareholder.  As of July 01th 2021, the  PHASE 1 - First Aid project: scope of financial aid will Lump-sum contribution of € 210  Both not having any other depend on the current income from entrepreneurial, situation in each region  PHASE 0: no aid is applied non-entrepreneurial and according to so called "Covid dependent activity after traffic lights risk table". 01.01.2021.  PHASE 3: In case of  unfavourable epidemiological situation III. and IV, degree warning the aid will be paid according to the rules of the First aid ++ project. Burgundy or black colour on the Covid traffic lights risk table.  PHASE 2: In case of an improving epidemiological situation, I. and II. degree warning, the aid will be paid according to the rules of the First Aid + project. Red or pink colour on the Covid traffic lights risk table.  PHASE 1: No national Covid traffic lights risk table and at the same time there are at most 39 districts in the level of monitoring (green colour) contributions will be paid on the basis of conditions from the original First Aid project.

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 PHASE 0: The auxiliary scheme will not apply if none of the districts in in I. to IV. warning level according to the Covid traffic lights risk table and at the same time at least 40 districts are in Monitoring level (green).  More information regarding Covid traffic lights risk table can be found here: https://korona.gov.sk/wp- content/uploads/2021/05/3_co vid-automat-signalizacny- system-2v4.pdf 13

Social benefits for  55% of the daily assessment  All employers having  An employee has to be absent  An employee shall contact (via a  Immediately, after the persons in quarantine base, or gross monthly wage of employees in quarantine or from work due to quarantine or phone call or email) their doctor, application is or isolation employees in quarantine or isolation. isolation. who confirms the employee's processed by the isolation will be paid by the Social temporary incapacity to work due Social Insurance. Insurance instead of employers. to quarantine or isolation. The  Payment will be doctor subsequently sends the  Compensation will be paid from the made directly to the employee's personal data and all first day of quarantine or isolation. employee. related information to the Social Insurance Authority.

Temporary protection  Suspended obligation to file for  All companies and  An applicant has to declare  The application is available at  N/A from insolvency until company's bankruptcy. entrepreneurs – natural compliance with some other https://www.justice.gov.sk/Stranky/  Protection against creditors' persons. conditions in the application, Nase-sluzby/Docasna- insolvency petitions. including: ochrana.aspx  Suspension of pending bankruptcy  is not obliged to file for  Temporary protection can be proceedings initiated by the bankruptcy, requested until December 31 creditor. 2022.  keeps proper accounts  Suspension of enforcement and maintains financial proceedings commenced after 12 statements, March 2020.  Suspension of the debtor's  has not distributed a obligation to file for bankruptcy. profit or other own resources in the last  Suspension of certain distrains 12 months prior to the relating to the enterprise. application,  Temporary ban on the pledge  there is no enforcement or enforcement. similar enforcement procedure  Set-off debtor's receivables arising in respect of him, and the after the temporary protection has exercise of the lien has not

13 The information provided is in Slovak only, please let us know, should you desire further clarification. 91 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Slovakia

been granted, against a receivable begun in respect of the of an affiliated person arising prior undertaking or in respect of to the temporary protection is matters belonging to the prohibited. undertaking.  Termination of a contract due to the debtor's delay with its performance is ineffective.  Periods for raising a claim against a protected company, including periods for raising claims against a debtor under claw-back provisions, are suspended. Subsidy for local  Financial support, provided by the  All Slovak companies and  The amount of decrease in  The application will be available tourism state, in the total amount of entrepreneurs providing net turnover must be more at www.slovensko.sk €220,250,000. services in tourism. than 40%. An application for  The maximum amount of aid under this scheme can the aid to a single also be applied for separately undertaking may not by the company for specific exceed €200,000 during the individual months. period covering the current fiscal year and the two (2) previous fiscal years.  The amount of the provided financial contribution is 1.44 - 10% of the net turnover in the eligible period, while it is divided as follows: - Travel providers 6% - Travel agencies 3.6%  - Other activities 10%. Subsidy for individuals  If the applicant for the  Eligible applicants are natural  As of the date of submitting  Application for registration  Immediately calendar year 2020 has not persons (professional artists the application for the in the register of in culture and the  The application had paid social security or other professionals and subsidy, the applicant must professional artists and creative industries to be submitted by contributions at least in the other professionals working be registered in the records other professionals in June 30, 2021. amount of 6 times the in culture) carrying out long- of the Art Support Fund and culture minimum contributions for term activities in the cultural have filed a tax return for https://www.fpu.sk/sk/ziado the year 2020, which is € sector and the cultural and personal income tax type B st-o-zapis-do-evidencie- 1,007.34, the amount of creative industries, who have for 2019 and 2020. profesionalnych-umelcov- the subsidy is € 4,000. If a year-on-year decrease in a-inych-profesionalov-v- the applicant has income of min. by 30%.  The achieved income of kulture/ demonstrably paid social applicants for the year 2019 security contributions for must be at least in the  The application is available at the calendar year 2020 in amount of 4000 euros ds.culture.gov.sk the amount of at least € €4,000. The maximum income for 2020 may not

92 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Slovakia

1,007.34, the amount of exceed EUR €20,394 for the subsidy is € 6,000. natural persons claiming flat-  rate expenditure and EUR €13,596 for natural persons claiming demonstrable tax expenditure.

Key Contact Tatiana Prokopova Partner, Bratislava T +421 905 415 320 E [email protected]

93 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Spain Financing Facility Support What help is available? What does the help entail? Which companies are What is the criteria (if How to apply When will the finance eligible? any) for applying? be available?

ICO Guarantee Facility  The government is providing financial  Self-employed, SMEs and  Applicant must be a  The interested person or  The first scheme Schemes institutions (as lending entities) with a any other size of company. company based in Spain or company must address an was launched on 18 guarantee of: a self-employed based in application to the Spanish March 2020. An in depth FAQ page Spain that is affected by the financing entities with which the ‒ Up to a maximum amount of €72.5  The scheme is can be accessed here. economic effects of COVID- ICO has signed the relevant billion, 80% of new loans or credit available currently. Royal Law-Decree facilities, as well as renewals of pre- 19. cooperation agreement. 8/2020 of urgent and existing agreements of financing  Applicant must not be in  Person or companies interested extraordinary measures transactions to self-employed workers default of its payment in applying for the ICO guarantee to deal with the economic or SMEs (companies with up to 250 obligations as of 31 may submit their application until and social impact of employees and less than €50 million of December 2019. 15 October 2021. COVID-19, approving the annual turnover or less than €43 million  Applicant must not be under of annual balance sheet total) first ICO Guarantee insolvency proceedings as Facility scheme (Art. 29) ‒ Up to a maximum amount of €28 of 17 March 2020. billion, 70% of the new loan or credit can be found here.  Applicant issuing facility and 60% of amounts being promissory notes that would extended by renewals of pre-existing benefit from the guarantee financing agreements to larger Royal Law-Decree must fulfil the following companies 25/2020 of urgent additional conditions: ‒ Up to a maximum amount of €4 billion measures to support ‒ The applicant has to be for the issuance of promissory notes economic recovery and a non-financial entity. incorporated into the Alternative Fixed employment, approving Income Market (MARF). ‒ The issuance of the second ICO promissory notes must Up to a maximum amount of €2.5 Guarantee Facility ‒ be published between billion for SMEs and self-employed 6 May 2020 and 30 scheme (Art. 1) can be workers in the tourism sector and September 2020. found here. related activities. ‒ The issuance € 500 million granted to companies and ‒ programme must have self-employed workers for the Resolution of the been incorporated into purchase or lease of motor road Spanish Cabinet of the MARF by 23 April transport vehicles for professional use 2020. Minister that activates (leasing). and contains the terms and conditions of the ICO ‒ € 500 million granted to the Spanish state-owned company Compañía Guarantee Facility Española de Reafianzamiento, SME Scheme can be found Sociedad Anónima (CERSA). here.  The financial institutions participating in the schemes undertake to maintain the costs of new loans and renewals in line with the costs applied before the start of the COVID- 19 crisis.

94 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Spain

 The financial institutions undertake to maintain the availability of any credit facilities granted to its clients until 30 September 2020.  The schemes are designed to boost lenders' confidence in providing finance amidst the COVID-19 pandemic.  The Guarantee Facility Schemes are approved by the government up to a maximum amount of €144 billion.  The facility is managed by the Spanish Official Credit Institute (ICO), in cooperation with the Spanish financing entities.  The guarantee to be issued will have a duration equal to the term of the loan or credit facility being granted or renewed, with a maximum term of ten years.  The cost of issuing the guarantee shall be between 20 and 120 basis points and shall be borne by the financing entities. ICO Guarantee Facility  The government is providing financial  Self-employed, SMEs  Applicant must be based in  The interested person or company  The ICO Guarantee Scheme for Tourism institutions (as lending entities) with a (companies with up to 250 Spain. must address an application to the Facility Scheme for Business guarantee of 50% of new loans to self- employees and less than  Applicant must not be in Spanish financing entities with Tourism Business is employed workers or companies dedicated €50 million of annual default of its payment which the ICO has signed the available currently. Royal Law-Decree to the tourism economic sector (including turnover or less than €43 relevant cooperation agreement. 7/2020 on Urgent obligations. hotels). million of annual balance  Persons or companies interested Measure to cope the sheet total) and any other  Applicant must not be under  The purpose of the loan to be granted must insolvency proceeding. in applying for the ICO guarantee impact of COVID-19, be to meet the liquidity financial needs and size of company dedicated may submit their application until approving the ICO digitalization process. to the tourism economic  If the applicant is a large 31 December 2020. Guarantee Facility sector. company, its credit rating  The maximum amount of each guarantee cannot be below B. Scheme for Tourism provided through the ICO Guarantee Facility Business (Art. 12) can be Scheme for Tourism Business is €500,000 found here. per applicant. A summary of the terms  The loans to be granted must have a fixed and conditions of the ICO interest rate of 1.5%. Guarantee Facility  The loans to be granted must have a Scheme for Tourism repayment period of up to four years Business and a full list of maximum with a one-year grace period. participating lending  The Spanish Official Credit Institute (ICO), in entities can be found cooperation with the Spanish financing here. entities, manages the facility. Temporary Public  The government has created a fund entity  Companies regarded as  Applicant must be a  The interested company must  The scheme is Support for strategic (the "Fund") managed by Sociedad Estatal strategic for the Spanish or company based in Spain or a address an application to available currently. companies de Participaciones Industriales (SEPI), regional economic structure. self-employed based in Sociedad Estatal de

95 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Spain

Royal Law Decree initially allocated EUR 10 billion, and it due to their sensitive social Spain that is affected by the Participaciones Industriales 25/2020, of July 3rd, on provides financial support through any equity and economic impact, their economic effects of COVID- (SEPI). urgent measures for and/or hybrid equity facilities. importance for security, the 19.  The deadline for taking a decision supporting the economic  The purpose of the Fund is to provide health of the population, the  Applicant must not be in about the approval will be 6 infrastructures, the recovery and temporary state support in order to reinforce default of its payment months after the company the corporate solvency of non-financial communications, or for their obligations as of 31 submits its request. employment set up the role in the adequate Fund for Supporting the companies affected by the COVID-19 December 2019. pandemic, which are regarded as strategic operation of the markets, Solvency of Strategic among other reasons.  Applicant must not be under for the Spanish or regional economic insolvency proceeding. Companies, (Art. 2) can structure. be found here.  Provide evidence that in the  The temporary public support facilities absence of temporary public granted by the Fund to strengthen corporate support from the Fund, the Order PCM/679/2020, of solvency, may take the form of any equity beneficiary would cease its 23 July, establishing the and/or hybrid equity facilities (i.e. granting of activity or would face serious equity loans, convertible debt, the operational procedures of difficulties to remain in subscription of shares or equity operation. the Fund to support the participations or any other equity solvency of strategic instrument).  Provide evidence that the forced activity cessation companies, can be found  The amounts of the facilities provided by the here. would have a high negative Fund shall be not less than EUR 25 million impact on economic activity per beneficiary, save in duly justified or employment, at national or exceptional cases. regional level.  The maximum amount of temporary public  Provide evidence of their support operations shall be the minimum medium and long-term necessary to restore the viability of the viability by submitting a company and may not entail an equity business plan for dealing increase of the beneficiary company in with their crisis situation. excess of that recorded as at 31 December 2019.  Submit a repayment forecast of state support with a repayment schedule of the nominal state investment and remuneration payments and the measures that would be taken to fulfil with the state support repayment plan.  Not to have been declared by a definitive judgement as liable of early termination of an agreement entered into with the Administration.  Not have been declared by a final judgement as ineligible to receive public support of financial subsidies.

96 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Spain

Other Financial Support What help is available? What does the help entail? Which companies are What is the criteria (if How to apply When will the finance eligible? any) for applying? be available?

CESCE Credit  The government has created a credit  Spanish SMEs:  The credit insurance  The applicant must address its  The scheme was Insurance Coverage insurance coverage scheme to boost export ‒ Up to 250 employees scheme covers credit application to CESCE. approved on 18 Scheme contracts of up to €2 billion for a period of insurance risk of working March 2020. six months. ‒ Up to €50 million of capital facilities for exporting Royal Law-Decree annual turnover, and/or companies and  The credit insurance coverage is provided up to €43 million of 8/2020 of urgent and by Spanish ECA "Compañía Española de internationalised annual balance sheet businesses. extraordinary measures Seguros de Crédito a la Exportación, S.A. total to deal with the economic Cía. de Seguros y Reaseguros" (CESCE).  Applicant must not be in Internationalised companies and social impact of  default of its payment  The percentage of credit risk insured shall on which international COVID-19, approving the not exceed 80%. obligations or in insolvency business represents at least as of 31 December 2019. Extraordinary scheme of one third of their turnover. Insurance Coverage (Art.31) can be found here. The information phone number and a summary of the details of the EIC, can be found here

97 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Spain Key Contacts

Rafael Alonso Manuel Mingot Partner, Madrid Partner, Madrid T +34 91 426 4842 T +34 91 426 4840 E [email protected] E [email protected]

98 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom Financing Facility Support United Kingdom What help is available? What does the help entail? Which companies are What are the criteria (if How to apply When will the finance be eligible? any) for applying? available?

Recovery Loan Scheme  This replaced the previous COVID-19 loan  Trading in the UK.  Please see column to the  Businesses can find the list  The scheme launched on ('RLS') schemes when they closed.  Is viable, or would be viable left. of accredited lenders and 6 April and is open until  The loans are available through a network were it not for the  Businesses which cannot details of how to apply on 31 December 2021. of accredited lenders. pandemic. apply: the British Business Bank website.  Ensures businesses of any size can  Has been impacted by the o Banks, building continue to access loans and other finance coronavirus pandemic. societies, insurers and reinsurers (but not up to £10 million per business.  Is not in collective insurance brokers);  The finance can be used for any legitimate insolvency proceedings. Public-sector bodies; business purpose, including growth and  Businesses that have o and investment. received support under the  The government guarantees 80% of the previous COVID-19 o State-funded primary finance to the lender, to ensure they guaranteed loan schemes and secondary schools continue to have the confidence to lend to will still be eligible to access businesses. finance under the scheme, if  Types of finance available: they meet the other criteria. o Term loans and overdrafts between £25,001 and £10m per business. o Invoice finance and asset finance between £1,000 and £10m per business.  Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice facilities, up to three years.  No personal guarantees will be taken on facilities up to £250,000, and a borrower's principal private residence cannot be taken as security.

99 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom Other Financial Support What help is available? What does the help entail? Which companies are What is the criteria (if How to apply When will the finance be eligible? any) for applying? available? Employment measures: Coronavirus Job  The CJRS has been extended until 30  All UK businesses whose  For periods starting on or  Applications are via the  Support under the scheme Retention Scheme September 2021. operations have been after 1 May 2021, eligible online gateway. will run until 30 September (CJRS)  Businesses that cannot maintain their severely affected by COVID- employers will be able to  There is a template on 2021. workforce due to COVID-19 can continue to 19.Any entity with a UK claim for employees who HMRC's website which  Claims for furlough days in furlough their employees and apply for a payroll including businesses, were employees and on employer's must complete if July 2021 must have been grant under the scheme.For August and charities, recruitment their payroll on 2 March they are claiming for 16 to made by 16 August 2021. September, CJRS grants will cover 60% of agencies and public 2021, as long as they 99 employees, or 100 or authorities. The government made a PAYE Real Time  Claims for furlough days in wages up to a cap of £1,875 for unworked more employees. Employers August 2021 must be hours. This cap is proportional to the expects that publicly funded Information submission to must keep a written record organisations will not use the HMRC between 20 March made by 14 September number of hours not worked, so someone of any agreements with 2021. working 75% of their normal hours in scheme, but partially 2020 and 2 March 2021, employees for at least five September, for example, would receive publically funded notifying a payment of years. Records of the under the CJRS no more than 25% of that organisations may be earnings for those amount claimed and the £1,875. For August and September, eligible. employees. claim period for each employers are expected to top up the  There is no financial impact  Employees do not need to employee must be kept for 6 government's contribution so that assessment test. have been furloughed years. furloughed staff continue to receive 80% of under the CJRS The government will publish their usual wages for any unworked hours, previously. information about employers up to the cap of £2,500 per month (or  Employees can be on any who claim for periods beyond it to 100% if the employer wishes). type of employment starting on or after 1 Employers must also continue to pay the contract, including full- December 2020. associated employer National Insurance time, part-time, agency, contributions and pension contributions. flexible or zero-hour contracts.  To be eligible for the grant, employers must have confirmed to their employee (or reached collective agreement with a trade union) in writing that they have been furloughed or flexibly furloughed. Statutory Sick Pay  Refund to cover up to two weeks' SSP per  Businesses must be UK  Employers must have  There is an online service to  There is an online service (SSP) eligible employee off work due to COVID- based. fewer than 250 employees claim back SSP. to claim the rebate. The 19.  Businesses must be SMEs. determined by the number  Records of all SSP will need Chancellor confirmed in  Refunds would cover employees in a of people employed as of to be kept including: the Spring Budget that the  Businesses must have a 28 February 2020. scheme will continue to variety of circumstances, including those PAYE payroll scheme that reasons why an employee who are eligible for SSP because they or  The scheme covers could not work, details of support employers while was created/started on or sickness levels are high, someone they live with has coronavirus before 28 February 2020. periods of sickness each period when an symptoms or has tested positive for employee could not work 100 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom

coronavirus, they have been notified by the  Businesses must maintain starting on or after 13 including start and end but it will be closing in due NHS or public health authorities that they records of the statutory sick March 2020. dates, details of the SSP course. have been in contact with someone with payments for at least 3 years  Employers should maintain qualifying days when an coronavirus, etc. following a claim. records of staff absences employee could not work,  A business can claim from the first and payments of SSP, but National Insurance numbers qualifying day the employee is off work. A a GP fit note is not of all employees SSP has 'qualifying day' is a day an employee required from employees. been paid to. usually works on. Employees must self-  If evidence is required by isolate for at least four days to be eligible an employer, those with for SSP. COVID-19 symptoms can  The current weekly rate is £96.35. get an isolation note from Employers who pay more than the weekly NHS 111 online and those rate of SSP can only claim up to the weekly living with someone that rate paid. has symptoms can obtain  The scheme covers all types of employment a note from the NHS contracts, including full-time employees, website. part-time employees, employees on agency contracts and employees on flexible or zero-hour contracts. Self-Employment  The grant extension is for self-employed  For the fifth and current  To be eligible for the grant  Claims for the first, second,  Claims for the fourth Income Support individuals who are currently eligible for the grant, must have submitted a extension self-employed third and fourth grant have SEISS grant have now Scheme (SEISS) grant Self-Employment Income Support Scheme 2019-20 Self-Assessment tax individuals, including now closed. closed. The last date for extension and are actively continuing to trade, but are return – on or before 2 March members of partnerships,  Claims for the fifth grant can making a claim for the facing reduced demand due to coronavirus 2021. must: be made on the GOV.UK fourth grant was 1 June (COVID-19).  Must have traded in 2019-20 − have been previously website, here. 2021. eligible for the Self-  The fifth and final grant covers May to and 2020-21 tax years.  Further guidance can be  The fifth and final grant Employment Income September 2021. The value is determined  Must either be trading when found on GOV.UK here. can now be claimed Support Scheme by a 'turnover test'. People whose turnover applying or would be trading (although they do not has fallen by 30% or more will continue to were it not for COVID-19. receive the full grant worth 80% of three have to have claimed months' average trading profits, capped at  Must intend to continue the previous grants); £7,500. People whose turnover has fallen trading in 2020-21 tax year. and by less than 30% will receive a 30% grant,  Must have lost − Must provide the capped at £2,850. trading/partnership profits as following 2 different a result of COVID-19. turnover figures (unless started trading in 2019 to 2020 and did not trade between 2017 and 2019): . April 2020 to April 2021; . Either 2019 to 2020, or 2018 to 2019.

Tax measures: 101 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom

Temporary extension  Temporary extension to carry back trading  All companies  No formal criteria other  There is no special  The extension applies to to carry back of trading losses for Corporation Tax for incorporated (unincorporated businesses) than making trading application process. trading losses made by losses businesses (and Income Tax for making losses from carrying losses during the Businesses should claim companies in accounting unincorporated businesses). on trades (or professions or relevant two year the extended loss carry periods ending between 1  Subject to certain caps, businesses will be vocations) during the period. However, certain back in the course of April 2020 and 31 March able to carry trading losses arising during relevant two year period. caps apply to the completing their normal 2022 (and by company accounting periods ending in the amount of relief business tax unincorporated period 1 April 2020 to 31 March 2022 (and, available. computations and businesses in tax years for unincorporated businesses, during tax  The amount of trading returns. 2020 to 2021 and 2021 to years 2020-21 and 2021-22) back for relief losses that can be  However, claims below a 2022). Legislation making against profits of earlier years to get a carried back to the de minimis limit of provision for the repayment of tax paid. The normal preceding year remains £200,000 may be made temporary extension will restriction on the carry back of trading unlimited. However, outside a return. This form part of the Finance losses will be extended from the current after carrying losses means that any stand- Act 2021. one year entitlement to a period of three back to the immediately alone (or group) company years. Losses will need to be carried back preceding year, a with losses capable of and utilized against later years first. maximum of £2,000,000 providing relief up to a of unused losses will be maximum of £200,000 of available for carry back losses, may make a claim under the extension in respect of a relevant against profits of the accounting period without same trade to the earlier having to wait to submit 2 years. The £2,000,000 its company tax return. limit applies separately For the avoidance of to the unused losses of doubt, any stand-alone each 12 month period (or group) company during the extension. In wishing to make a claim corporate group exceeding £200,000 must scenarios, the make the claim in their £2,000,000 cap will be company tax return. subject to a group-level limit that, in certain circumstances, will require the cap to be apportioned between group companies. Temporary reduced  On 8 July 2020, the government announced  The following supplies will  Being an organisation that  No formal application.  The temporary 5% rate of VAT for that it would introduce a temporary 5% benefit from the temporary make supplies of  Operation through Normal reduced rate of VAT hospitality, holiday reduced rate of VAT for certain supplies of reduced rates of VAT: hospitality, hotel and VAT returns and applies now until 30 accommodation and hospitality, hotel and holiday . food and non-alcoholic holiday accommodation or compliance. September 2021. accommodation, and admissions to certain beverages sold for on- provides admission to attractions  Affected businesses should  The temporary 12.5% attractions. premises consumption, certain attractions. exercise care when reduced rate of VAT will for example, in  At Budget 2021, the government extended accounting for supplies that apply from 1 October 2021 restaurants, cafes and the temporary reduced rate until 30 straddle the periods with until 31 March 2022. pubs September 2021. different rates. . hot takeaway food and  Special rules may apply to hot takeaway non- businesses that use any alcoholic beverages 102 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom

 The temporary reduced rate will apply to . sleeping one of the Flat Rate supplies that are made between 15 July accommodation in Scheme; Tour Operators 2020 and 30 September 2021. hotels or similar Margin Scheme (TOMS); establishments, holiday or, a bespoke retail  From 1 October 2021, a new temporary rate accommodation, pitch scheme. of 12.5% will apply until 31 March 2022. fees for caravans and  From 1 April 2022, affected supplies will tents, and associated revert to the standard (20%) rate of VAT. facilities . admissions to the following attractions that are not already eligible for the cultural VAT exemption such as:  theatres  circuses  fairs  amusement parks  concerts  museums  zoos  cinemas  exhibitions  similar cultural events and facilities

Support for  Support made available for businesses and • All arrangements are to be  Businesses and self-  Calls can be to HMRC's  Calls can be made as of Businesses Paying Tax self-employed people in financial distress agreed on a case-by-case employed people in dedicated COVID-19 now. with their outstanding tax liabilities. basis. financial distress with helpline on 0800 024 1222  Support is provided through HMRC's Time • Arrangements will be tailored outstanding tax liabilities. (Monday to Friday 8am to to Pay service. to individual circumstances 4pm). and liabilities.  This allows businesses and individuals to enter an agreement to pay outstanding tax liabilities in instalments, over a period of time, with the possibility of delaying the first payment for up to 3 months. Expanded Business  A business rates discount relief for retail,  Retail, hospitality and leisure  Eligibility for the relief is  No action to be taken. Local  Relief is currently Rates Retail Discount hospitality and leisure businesses for businesses. related to occupation of a councils will apply the available in accordance (Retail, hospitality and 2020/21 and 2021/22 tax years. • Properties that will benefit rateable property by an discount automatically. with local schemes leisure sectors)  For 2020/21, the discount for eligible from the relief will be eligible business.  A business rates calculator operated by local businesses is 100% occupied properties  Business must be based in is available here to calculate authorities. wholly/mainly used as:  For 2021/22, the discount for eligible England. the charge saved. shops, restaurants, cafes, businesses is/was:  Similar schemes are drinking establishments, - ) from 1 April 2021 to 30 June 2021, 100% available in Scotland, cinemas, live music venues, Wales and Northern (without any cash cap; and properties for assembly and Ireland. leisure, hotels, guest and 103 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom

- from 1 July 2021 to 31 March 2022, 66% boarding premises, and self- (capped at £2m per business where the catering accommodation. business occupies a property that was required on 5 January 2021, or, in all other cases, capped at £105,000 per business). Business Rates Relief  A nationwide fund of £1.5bn for businesses  All rates paying businesses  Relief will be targeted at  Businesses will need to  The Business Rate Relief Fund outside the retail, hospitality and leisure in England, outside of the sectors that have apply to their local authority. Fund will be available sectors that have been adversely affected retail, hospitality and leisure suffered most  Local authorities will then once the MCC legislation by COVID-19. sectors, that have been economically. It will not use their knowledge of local has passed and local  The pot will be allocated to local authorities adversely affected by be based on falls in businesses and the local authorities have set up based on the stock of properties in the area COVID-19. property values. economy to make awards. local relief schemes. whose sectors have been affected by  Businesses must be  No decisions on the exact COVID-19. based in England. distribution have been  The government will also introduce  Similar schemes are made yet. legislation to prevent COVID-19 related available in Scotland, ‘material change of circumstance’ (MCC) Wales and Northern appeals to reduce business rates. As a Ireland. result, market-wide economic changes to property values (including from COVID-19) will only be considered at general rates revaluations.

Additional Restrictions  The Additional Restrictions Grant (ARG)  Local councils are  Businesses which cannot  Applications are made  Contact your local authority's Grant scheme (ARG) provides local councils with grant funding to encouraged to support: get funding include those through the business's local website to find out what is support businesses that are severely  Businesses from all sectors that: councils. available and how to apply impacted by restrictions, and that may or that may have been severely o Are in may not be in the business rates system. impacted by restrictions but administration,  Local councils can determine which were not eligible for the insolvent, or have businesses to support and determine the Restart Grant scheme (now been struck off the amount of funding from the ARG scheme. closed), including those Companies House register; and/or  The new domestic subsidy allowance for which do not pay business the COVID-19 business support grant took rates o have exceeded the effect on 4 March 2021.  Businesses from sectors that permitted subsidy limit  This scheme is covered by 3 subsidy had to remain closed or have allowances: been severely impacted by the extended restrictions, o Small Amounts of Financial even if those businesses Assistance Allowance - you're were in receipt of Restart allowed up to £335,000 (subject to Grants. This may include the exchange rates) over any period of 3 travel and tourism sector, years wedding industries, o COVID-19 Business Grant Allowance nightclubs, theatres, events - you're allowed up to £1.6m industries, wholesalers, English language schools, o COVID-19 Business Grant Special Allowance - if a company has breweries, freelance and reached its limits under the Small mobile businesses including caterers, events, hair, beauty 104 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Kingdom

Amounts of Financial Assistance and wedding related Allowance and COVID-19 Business businesses Grant Allowance, a business may be  The grants are discretionary. able to access a further allowance of Local Authorities will funding under these scheme rules of determine which businesses up to £9m, provided certain are eligible for grants from conditions are met this additional funding.  Grants under these 3 allowances can be  Local Authorities will also combined for a potential total allowance of have discretion on how, and up to £10,935,000 (subject to exchange how much, funding will be rates). provided. Other measures: Insurance  Insurance claims for pandemic related  Businesses with insurance  Businesses will need to  Businesses will need to  Claims can be made as of losses. cover for pandemics and/or check the terms and contact their insurance now. government-ordered closure. conditions of their specific providers. policies.

Key Contacts

James Collis John Alderton Partner, London Partner, Leeds T +44 207 655 1355 T +44 113 284 7026 E [email protected] E [email protected]

105 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Kingdom of Saudi Arabia Financing Facility Support

What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance be available? eligible? any) for applying? available? Repo Rate Reduction The Saudi Arabian Central Bank (SAMA) has  N/A.  N/A.  N/A. Nothing has been announced (SAMA) cut: further in this regard.  Repo rate by 75 basis points from 1.75% to 1.00%.  Reverse Repo rate by 75 basis points from 1.25% to 0.50%. SMEs – Private Sector SAMA has introduced the following stimulus Small- and medium-sized  The program applies  SMEs are directed to Financing Support package, amounting to SAR50 billion: enterprises (SMEs) incorporated in only to facilities contact their banks and Program (Ministry of  Deferred Payments Program – An amount the Kingdom, defined for these classified in the first financing partners direct. Finance/SAMA) of SAR30 billion made available to banks purposes as: stage of loan and financing companies to defer  Very Small Enterprise: 1-5 full- impairment (according repayments from SMEs for a period of six time employees, and SAR1-3 to the IFRS 9 standard) months. million annual revenue. as at 14 March 2020.  This has been extended until the end of Q1  Small Enterprise: 6-49 full-time of 2021. employees, and SAR3-40  This has been further extended to the end of million annual revenue. Q2 of 2021.  Medium Enterprise: 50-249 full- time employees, and SAR40- 200 million annual revenue.  Funding for Lending Program – An amount  SMEs as defined above  So far as we are aware,  SMEs are directed to  Nothing has been of SAR13.2 billion of concessional finance none has been contact their banks and announced further in this made available to banks and financing announced to date. financing partners direct. regard. companies to lend to SMEs, with a view to business continuity, sector economic growth and sustaining employment.  Loan Guarantee Program – An amount of  SMEs as defined above.  So far as we are aware,  SMEs are directed to SAR6 billion made available to banks and none has been contact their banks and insurance companies to relieve SMEs from announced to date. financing partners direct. the finance costs of their participation in the SME-focused KAFALA Program.  This has been extended until March 2022. Wage Support  Private sector employers may apply to the  Private sector employers who The employer must:  Applications are effected Scheme (Ministry of General Organization for Social Insurance are significantly affected by the  Have been subscribed on-line through GOSI's Finance/GOSI) (GOSI) for a monthly compensation COVID-19 outbreak, and who with the unemployment online portal at: payment of up to 60% of the registered are employed in one of the insurance branch before https://www.gosi.gov.sa/GO wages (subject to a cap per employee of following sectors: 1 January 2020, and SIOnline/Login SAR9,000 per month) of up to 50% of their  Travel agencies continue to participate in Saudi national workforce for those entities this branch. least affected and 70% of their Saudi  Tour operators

106 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Kingdom of Saudi Arabia What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance be available? eligible? any) for applying? available? National workforce for those most affected  Reservation services  Resume payments after (or 100% of the workforce for employers  Air transportation the three-month period with five or fewer Saudi national workers) for of the workers covered. an initial three-month period, May to July  Sports activities  Continue to pay the 2020.  Amusement and wages of the remaining  If claimed, the employer cannot compel the entertainment activities uncovered Saudi worker to continue working during the  Creative activities and nationals and non- compensation period. arts Saudis.  In respect of the Wage Support Scheme,  Have met all of their employers must continue to make wage payment deductions from employees for their share obligations for of social security contributions, as this will employees during the need to be paid over once the grace period first quarter of 2020. has come to an end.  The Scheme has been extended by Royal Order until January 2021. Corporate Income General Authority for Zakat and Tax (GAZT)  All Saudi-incorporated  N/A.  N/A. Tax/Withholding Tax has announced the following measures: companies, and Saudi national (Ministry of  Three-month extension for the payment and self-employed and independent Finance/GAZT) filing of corporate income tax, Zakat and professionals. mixed returns due between 19 March and 30 June 2020. This has been extended by Royal Order for a period of two months.  Corporate income tax and Zakat certificates will be issued without restriction for the fiscal year 2019 to allow companies to renew visas, licenses and receive payment in respect of government contracts.  Approval of instalment payment requests for Zakat and corporate income tax purposes, where no advance payment was made. This has been extended by Royal Order for an additional period. GAZT advised that this will expire 31 December 2020.  Three-month extension for the payment and filing of withholding tax returns relating to the period March, April and May 2020.  Temporary suspension of the application/enforcement of certain administrative penalties and fines.  Commitment to expedite the payment of taxpayers' refund claims. This has been extended by Royal Order for an additional

107 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Kingdom of Saudi Arabia What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance be available? eligible? any) for applying? available? period. GAZT advised that this will expire 31 December 2020. Indirect Tax Measures GAZT has announced the following measures:  All Saudi-incorporated  N/A.  N/A. – VAT and Customs  Three-month extension for the payment and companies, and Saudi national (Ministry of filing of monthly VAT returns relating to the self-employed and independent Finance/GAZT) period March, April and May 2020. This has professionals. been extended by Royal Order for an additional period. GAZT advised that this will expire 31 December 2020.  Three-month extension for the payment and filing of quarterly VAT returns relating to Quarter 1 of 2020. This has been extended by Royal Order for an additional period. GAZT advised that this will expire 31 December 2020.  Three-month extension for the payment and filing of excise tax returns relating to the period March/April 2020. This has been extended by Royal Order for an additional period. GAZT advised that this will expire 31 December 2020.  A 30-day deferral for the collection of customs duties on imports for the period ending 30 June 2020, provided that a bank guarantee is submitted. This has been extended by Royal Order for an additional period. GAZT advised that this will expire 31 December 2020. Permits & Visas In light of the current travel restrictions to and  All employers incorporated in  N/A. Applications are effected as (General Directorate from the Kingdom, the following short-term the Kingdom, and their expat follows: of Passports – extensions have been implemented: employees.  Iqama extensions –online Jawazat Office)  Iqama (long-term work and residence through the Muqeem portal permit) – All foreign nationals whose Iqamas at: expire between the period of 18 March 2020 https://muqeem.sa/#/login and 30 June 2020 (whether inside or  ERE Permits – online outside the Kingdom), are able to extend through the Muqeem portal, their Iqamas for three months. The three- and the Absher portal at: month extension will be exempt from the https://www.absher.sa/ standard government fees. This has been extended by Royal Order, whereby Iqamas of expatriates who are outside the Kingdom on an exit and return visa, which expired during the period of which entry and exit were suspended due to the COVID-19

108 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Kingdom of Saudi Arabia What help is What does the help entail? Which companies are What is the criteria (if How to apply When will the finance be available? eligible? any) for applying? available? pandemic has been extended for an additional period of three months free of charge, and Iqamas for expatriates who are inside Saudi Arabia and had arrived on a visit visa that expired during the travel ban period, have been extended for a period of three months free charge.  Work Visas – Employers will be entitled to a refund of fees paid to obtain work visas for employees that are ultimately not used, due to the entry/exit restrictions in the Kingdom.  Exit/Re-entry (ERE) Permit – All foreign nationals who were not able to use their EREs between the period of 25 February 2020 and 20 March 2020 (whether inside or outside the Kingdom), are able to extend their EREs for three months. The three- month extension will be exempt from the standard government fees. This has been extended by Royal Order for another period of three months  Final Exit – Employers who have cancelled the Iqamas of their employees and secured a final exit visa for them are able to cancel those final exit visas, with the employees granted a three-month stay extension in the Kingdom, without any government fees. This has been extended by Royal Order for an additional period until 31 October 2020, and the renewal will be effected automatically without the need to apply for the extension and free of charge. Makkah and Madinah  SAMA is coordinating with banks and  All Saudi-incorporated  N/A.  Companies located in  Nothing has been (SAMA) finance companies to ease the repayment companies located in Makkah Makkah and Madinah are announced further in this obligations of companies located in Makkah and Madinah. directed to contact their regard. and Madinah that have been affected by the banks and financing precautionary measures implemented. partners direct.

109 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 Kingdom of Saudi Arabia Key Contacts

Alex Gross Khalid A Al-Thebity Partner, Riyadh Office Managing Partner, Riyadh T +966 11 250 1255 T +966 11 250 1251 E [email protected] E [email protected]

110 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Arab Emirates Financing Facility Support

What help is What does the help entail? Which companies are What is the criteria (if any) How to apply When will the finance be available? eligible? for applying? available? Standards of the  The funding allows banks and finance  Non-agricultural small  Loans will be extended to  Originally, from 15 March TESS scheme and companies in the country to extend businesses. businesses experiencing or 2020 for a period of one detailed information deferrals of principal and/or profit or interest expected to experience cash- year. On 16 November can be accessed here. payments (as applicable) to their customers. flow pressure as a result of a 2020, this programme The package includes: loss in revenue due to was extended by the UAE COVID-19. Central Bank to 30 June − An AED50 billion capital buffer relief for 2021. On 21 April 2021, it banks was announced that the − An AED50 billion collateralised liquidity AED 50 billion zero cost facility available to eligible banks and loan facility for banks to financial financials at zero interest/profit, draw on to boost lending and to sectors affected by the − An AED95 billion liquidity buffer relief to pandemic has been ensure there is sufficient liquidity in the extended to end-June market 2022, and the Central Bank's financing for loan − The governments of the Emirates of Abu deferrals under TESS Dhabi and Dubai have independently would be extended to enacted similar measures at the Emirate end-2021. level, as well as special relief specific to banks operating within those Emirates. Emirate of Sharjah The government of Sharjah has declared 47  The initiatives aim to support  Applicants must be based in  N/A  Certain of these initiatives Economic Stimulus initiatives. Examples of the initiatives include: governmental, private entities, Sharjah. ended in March 2021. Package  A 50% discount on traffic violations and local businesses and individuals  Others are open-ended. cancellation of black points committed based in Sharjah.  The value of the before 31st March 2020, for a period of incentives in the first three months, from 1 April 2020. package was estimated at  Three-month exemption from charges for Dh481 million. financial institutions renewing their licenses  The value of the second from 1 January 2020 to 31 December 2020. stimulus package  A 30% reduction in cost to members of the amounts to Dh512 million. Sharjah Chamber of Commerce and Business to take part in Expo Sharjah exhibitions for 12 months.

Key Contacts

111 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Arab Emirates

Thomas P. Wilson Campbell M. Steedman Office Managing Partner, Abu Dhabi Office Managing Partner, Dubai Abu Dhabi - T +971 2 651 5905 T +971 4 447 8760 E [email protected] E [email protected]

2 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 25 August 2021 United Arab Emirates

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