COVID-19 Summary of Government Financial Support Europe and Middle East 19 August 2020 Version 18 squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 13 August 2020 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 European Commission 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 three cohesion policy respective member funds (the European Regional states. Development Fund, European The federal or regional Social Fund and Cohesion authorities direct the Fund) funds to their regions - 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 = Measure expired = Measures are set to expire in 1-2 weeks = Ongoing measure squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 13 August 2020 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? − Simplification of procedural steps linked to programme implementation, use of financial instruments and audit. 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 dedicated guarantee Horizon 2020 Associated schemes to banks based on Countries1) and the existing programmes for COSME Loan immediate deployment. Guarantee Facility - €10 billion of financing (SMEs in EU member 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 Guarantee Facility. 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 = Measure expired = Measures are set to expire in 1-2 weeks = Ongoing measure squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 13 August 2020 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? transfer risk on portfolios of Guarantee schemes, SME loans. 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. Instrument for the healthcare systems of EU systems. process and set out the European Commission. January 2022. Council Regulation healthcare sector member states. The criteria for funding based Further application (retroactive application). (EU) 2020/521 to Commission will thus mobilise: on partnership criteria to be determined Council of the EU activate emergency - €3 billion from the EU budget, agreements with by partnership approved the proposal support published in of which €2.7 billion will be respective member agreements between a for a Regulation. the Official Journal of channelled through the states, as laid out in the member state and the the EU. Emergency Support humanitarian aid European Commission. European Instrument framework (Council Regulation (EC) Commission press - €300 million though the 1257/96). release. rescEU medical equipment capacity. Indicative (but non- exhaustive) actions in These funds are available under scope can be found on the EU's General Budget. ANNEX 1 of the Additional contributions will be Proposal for a Council possible from member states Regulation to activate and also individuals, emergency support. foundations and even crowd funding. RescEU stockpile Increase in the total budget of Reorganisation of EU The Commission will The stockpile will be Available from 20 March European rescEU3 stockpile of medical spending for the year in finance 90% of the hosted by one or several 2020. Commission press equipment (ventilators, line with the latest stockpile. member states. The release protective masks and essential priorities to secure The Emergency hosting state will be European medical gear) to €80 million. funding for these Response Coordination responsible for procuring Commission The proposal includes further operations. Centre will manage the the equipment. Implementing COVID-19 related financial distribution of the Member states that host Decision support: equipment to ensure it rescEU stockpiles can 3 EU Civil Protection Mechanism. = Measure expired = Measures are set to expire in 1-2 weeks = Ongoing measure squirepattonboggs.com COVID-19: Summary of Government Financial Support to Businesses as at 13 August 2020 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? − €350 million of migration goes where it is needed apply for a direct grant management assistance to most based on a fast- from the European Greece track public procurement Commission. 90% of the − €3.6 million for the European process. grant covers costs of the Centre for Disease stockpile and the Prevention and Control remaining 10% will be covered by the − €100 million to help Albania respective