The Ministry of Finance "runs" the new program of subsidizing fixed expenses of companies with "full" rates, like light, water, phone, as already with a bill submitted to Parliament gives the outline of the financial scheme: In fact, clarifies that the aid in the form of a "fixed costs subsidy" is unsecured, tax-free and is not offset against any debt.
As the bill characteristically states "in companies that were financially affected due to the appearance and spread of coronavirus COVID-19, aid may be granted, in the form of a fixed costs subsidy in the context of support for non-covered fixed costs of businesses ". And it completes: "By joint decision of the Ministers of Finance and Labor and Social Affairs, after a suggestion of the Commander of AADE, the form of the aid is determined, the beneficiaries, the mean, the height, the methodology for determining and the intensity of the aid, the determination of eligible fixed costs, the eligible period of non-covered fixed costs, the conditions of its grant, the relevant application process, the required data and supporting documents, the procedure for granting the aid, the obligations of the beneficiaries, the mechanism for ensuring that the maximum aid intensity is not exceeded and any other relevant issues for the application of this ".
How light will be covered, water, phone…
Light, water, phone, rents, wages: These are some of the expenses that the state is coming to cover - according to the available information- with the new program of subsidy of fixed expenses or otherwise the "successor" scheme of the Reimbursable Advance. Structured in a different logic from that of the Returnable will be its successor shape: And to 5 Repayable Advance Cycles – but also in the 6th that is expected to go on the air at the beginning of March- A key element in granting the aid was the shrinking turnover. Government officials estimate that from the moment the gradual return to normalcy is launched, the targeting of business financing should no longer be only the criterion of reduced turnover., as a business may show a shrinking turnover but be profitable. So, at the "table" for the next - after the Return as we know it- Financial schemes have dropped the criterion of costs and damage they cause to a business since they can not be covered.
When will the fixed cost subsidy be "activated"
In this context and immediately after the Refundable Advance 6, that is, after March, launches new financial instrument to subsidize fixed costs from the European Commission's Provisional State Aid Framework. This new tool will affect businesses that have been hit not only by a loss of turnover, but also because of the high costs they had to incur: fixed costs, such as electricity, the water, the phone, rents, supplies etc.. and which they may not have been able to cover. If the company has already received aid (eg Returnable), then from the amount to be granted it will be deducted the amounts from the previous support measures to which it had joined.
In other words, the new framework to be added to the existing support measures, but will take into account funding received so far by the beneficiaries. It still comes to cover everything,what the existing measures have not covered so far. Although all these costs, the State has already subsidized them, as with the Collaboration Program, the "haircut" of rents or the Returnable 1-5 etc., There are many companies that even so… did not manage to "close" their accounts.
Conditions for the subsidy of fixed assets
Since the company benefited from support measures 2020-2021, the amounts covered by specific "fixed costs" will be deducted from the algorithm and the grant from the new program. For example, from the fixed costs subsidy will be deducted what a company received as a suspension of rent payment. Ή from the wage subsidy, will be deducted what the state pays for work suspensions or the "Cooperation" program. A basic condition for a company to become a beneficiary of this action will be to show a decrease in turnover during the pandemic, at least 30% compared to its corresponding interval 2019. also, will "measure" whether damage has been recorded for the same period, but also whether it remains harmful, after taking into account the amounts received under support measures, for example from the circles of Returnable.
Which companies are affected by the subsidy
Through this program, the leadership of the Ministry of Finance is trying to support them small and medium enterprises of the country, suffocating liquidity problems losing a significant portion of their turnover from successive lockdowns. Based on the European Regulation, the funds are intended for sustainable businesses employing up to 250 employees. Businesses without staff will be excluded from the subsidy. For the selection of beneficiary companies, I will required to be sustainable. The Ministry of Finance will ask them to submit all available financial data (turnovers, losses, expenses, deposits). Based on these, the subsidy distribution algorithm will emerge, the final amount of which will be decided in March.
Amounts that will reach up to 3 million. euro
In fact, we are talking about a more "selective" program in relation to the Refundable Advance: The support provided through this European action will cover part of the fixed costs of the beneficiaries, which could be covered by their income, and if there is alignment with the original designs the ceiling may even reach the amount of 3 million. euro, per company. The amounts should start to be channeled by 30 June 2021 for non-covered fixed costs for the period between 1 March 2020 and June 30th 2021.
Vangelis Dourakis writes