Financial Shield for Large Companies. Preferential Financing.
Type of funding
Small and medium-sized Enterprises, big companies
Date of availability
till 31 March 2021
What you get
This financial instrument provides working capital for the company which you can use to pay • wages; • trade payables, including purchase of goods and materials or other operating costs; • public and legal liabilities; • other purposes related to the financing of current operations agreed in the agreement with Polish Development Fund.
The preferential financing within the PFR (Polski Fundusz Rozwoju/Polish Development Fund) Financial Shield for Large Companies is to compensate for the losses caused by disruption of the economy in connection with COVID-19. The preferential financing is in the form of a remissible loan with interest for up to 4 years. The remission is to compensate for a maximum 75% of the actual damage for the company as a result of COVID-19. The remission amount may not exceed 75% of the loan amount.
The preferential financing is for companies which suffered direct losses as a result of COVID-19. The losses are understood as cumulated negative EBITDA, in particular as a result of:
- stopping or limiting the operations as a result of administrative decision in connection with sanitary restrictions;
- stopping or limiting the operations as a result of partial or total quarantine for the company employees;
- stopping or limiting the operations as a result of unavailability of key goods, material or services in connection with broken supply chains;
- stopping or limiting the sale of ordered goods or services as a result of the customers’ inability to pick them up or non-payment.
The financing is given based on the WIBOR 1R rate and margin which depends on the financing maturity.
The preferential financing can be given up to 31 December 2020.
The preferential financing is given up to the estimated amount of damage incurred by the company as a result of COVID-19 and must not exceed:
- PLN 750 million;
- twofold annual payroll costs in the company (including employee benefits) for 2019;
- 25% of total turnover in 2019.
The preferential financing must not be used to pay current liabilities, including:
- trade payables, including purchase of goods and materials or other operating costs;
- public and legal liabilities;
- other purposes related to the financing of current operations specified in the Programme Financing Documents.
The preferential financing muss not be used for:
- any form of distribution to owners or related entities;
- purchase of shares or stock for cancellation;
- mergers and takeovers;
- refinancing or earlier repayment of loans;
- other purposes in the Programme Financing Documents.
Detailed information can be found in the Programme Rules.