The European Commission approved on Wednesday 25 March two separate UK state aid schemes to support small and medium-sized enterprises (SMEs) in the context of the outbreak of coronavirus cases. The schemes were approved under the temporary framework for state aid measures to support the economy in the context of COVID-19 adopted by the Commission on 19 March 2020.
The United Kingdom notified of two separate support schemes to support SMEs affected by the epidemic. The country will implement the Coronavirus Business Interruption Loan Scheme (CBILS), which will provide : - under the first support scheme, guarantees covering 80% of the loan facilities for SMEs with a turnover not exceeding GBP 45 million (around EUR 49 million) to cover their working and investment capital needs ; - under the second support scheme, direct grants to support SMEs affected by the pandemic. The overall budget of the scheme is GBP 600 million (approximately EUR 654 million).
The aid schemes will initially apply until 30 September 2020, with the possibility of the United Kingdom extending them until 31 December 2020.
According to the UK Withdrawal Agreement, during the transitional period, all Community law continues to apply to the UK as if it were an EU Member State. This also applies to EU state aid rules.
Spain. On Tuesday 24 March the Commission approved two Spanish guarantee schemes for companies and the self-employed with a total budget of around EUR 20 billion. Spain notified two guarantee schemes to the Commission concerning new loans and refinancing operations for self-employed workers and small and medium-sized enterprises (SMEs) and larger companies, all affected by the COVID-19 epidemic. These guarantee measures are intended to limit the risks associated with the granting of operating loans to businesses hard hit by the economic impact of this epidemic.
Germany. On 24 March (after a green light on 22 March for first German measures), the Commission validated additional aid under the temporary framework, implemented by the German federal and regional authorities as well as by promotional and guarantee banks. The scheme allows guarantees on loans on preferential terms to help companies cover their immediate working capital and investment needs.
Also on 24 March, the Commission approved another German scheme to support companies affected by the COVID-19 epidemic. The scheme, entitled 'Bundesregelung Kleinbeihilfen 2020', aims to remedy the difficulties faced by companies and to ensure that the disruption caused by the coronavirus epidemic does not jeopardise their viability. The aid shall take the form of direct grants, repayable advances or tax and payment benefits.
Denmark. A €1.3 billion aid scheme to compensate self-employed workers whose activities are affected by the pandemic was given the go-ahead on 25 March. Under this scheme, which will apply until 9 June 2020, self-employed persons whose names are included in the Danish civil registration system will be able to receive partial compensation for the loss of turnover suffered as a result of the coronavirus outbreak. This compensation will take the form of grants and will cover 75% of the expected loss of turnover over a three-month period, calculated on the basis of the average monthly turnover achieved in 2019. The maximum compensation will be EUR 3,000 per month and per person.
Finally, on 24 March, the Commission adopted the 'notification template' for the Temporary Framework for state aid to support the economy in the current context of COVID-19. To consult the 'notification template': https://bit.ly/2xqIvDf (Original version in French by Lionel Changeur)