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Liquidity support for enterprises
Pursuant to the amendment of the Act on the Polish Development Fund (PFR), a group of institutions focused around the PFR is to provide a range of financial and advisory solutions to support companies, local governments and employees. The PFR has nearly PLN 100 billion at its disposal to provide direct aid to companies facing difficulties. These funds will be distributed through the following institutions:
- The Polish Development Fund (“PFR”) enables financing in the form of taking up shares or stocks, bonds or loans. The PFR aid is primarily targeted at large enterprises of key importance to the Polish economy. The beneficiaries of the aid will also include micro, small and medium-sized enterprises, the number of which is estimated at around 2.5 million. The amended provisions also make it possible to support such entities as public hospitals and universities, hospitals, and scientific institutes.
– The PFR provides financial support directly or indirectly through: taking up or acquiring shares, stocks, subscription warrants, bonds, debts and joining partnerships, and granting loans, guarantees and sureties.
– Regulations with respect to aid provided by PFR for Large Companies are currently awaiting notification by the European Committee
- Bank Gospodarstwa Krajowego (“BGK”) issues de minimis guarantees for companies for up to 80% of the loan value. This should make credit easily accessible to enterprises. De minimis guarantees are intended for companies from the micro, small and medium-sized enterprise sector that are able to repay the loan.
BGK is currently working on establishing the Liquidity Guarantee Fund, from which guarantees are to be granted to medium and large companies affected by the COVID-19 pandemic. A system of subsidized interest rates on bank loans for entrepreneurs affected by the COVID-19 is being prepared as well.
- The Industrial Development Agency (“ARP”) provides loans to small and medium-sized businesses and preferential leasing for the transport industry. A new leasing product has been prepared for SME customers in particular to support them during the COVID-19 epidemic until the negative economic impact ceases.
- The Export Credit Insurance Corporation (“KUKE”) insures trading and helps finance exporting. The product solutions of the KUKE include:
– trade receivables insurance
– insurance guarantees
– factoring (through KUKE Finance)
– insurance of direct investments abroad
– insurance of export contracts of investment nature.
- The Polish Agency for Enterprise Development (“PARP”) provides funding in the form of subsidies addressed to the micro, small and medium-sized enterprise sector, creating opportunities to implement business ideas from concept to commercialization.
- The Polish Investment and Trade Agency (“PAIH”) is the first point of contact for entrepreneurs seeking support in maintaining and developing trade relations with foreign partners. PAIH offers, among other things, analyses of export potential, preparation of information packages, organization of B2B meetings, location-based consulting.
- PFR Ventures is a professional fund of funds which, based on EU funds, provides funding for Polish innovations in the Venture Capital formula.
As part of TPA practice, we offer assistance in the following areas:
- Identification of and assistance in obtaining aid under the Anti-Crisis Shield (including PFR funds)
- Assistance in negotiations with banks and insurers
- Working capital analysis in terms of possible optimizations
- Liquidity analysis for 2-3 months
- Development of financial restructuring strategy, including term sheet projects for banks, insurers, commercial creditors
- Independent Business Analysis (IBR) for negotiations with financial institutions, including, i.a. a proposal for restructuring measures and forecasts
- Valuation for the acquisition or sale of shares.
