The PFR 2.0 Financial Shield has been operating since January the 15th. In our article, we present information on what can be gained, what conditions must be met and how to use the  financial subsidy.

Subject conditions

The PFR 2.0 Financial Shield for micro, small and medium-sized enterprises can be used by an entity that:

1. Is an entrepreneur within the meaning of Art. 4 sec. 1 and 2 of the Act - Entrepreneurs Law, entered into the National Court Register or CEIDG;
2. Runs a micro, small or medium-sized enterprise, and in some cases - large enterprise (as defined in the Financial Shield Regulations 2.0);
3. Did run a business on December the 31st, 2019, November the 1st, 2020 and runs it on the day of submitting the application,
4. Operates in one of the 45 industries covered by aid under the Financial Shield 2.0;
5. As a rule, does not fall behind in paying taxes and social insurance contributions (there are exceptions to this rule);
6. Is not in the process of liquidation, bankruptcy or restructuring;
7. Has tax residence in the territory of the EEA, and its actual beneficiary does not have tax residence in tax havens (there are exceptions to this rule).

The Financial Shield 2.0 Regulation has its own definition of a micro-enterprise and small and medium-sized enterprise (SME), which determines whether and on what terms an entrepreneur can participate in the program. When determining whether a given entrepreneur qualifies for the program, we must, however, take into account capital and ownership links between entrepreneurs. In practice, companies belonging to the same capital group will be perceived as one enterprise within the meaning of the Program Regulations.

A micro-company is an entrepreneur who on December the 31st, 2019 employed at least one person, but not more than 9 employees converted to full-time work (if he did not employ anyone on that day, we take into account the employment status as of July the 31st, 2020) and whose annual net turnover or total balance sheet in 2019 did not exceed EUR 2 million.

Whereas, an SME is an entrepreneur who is not a micro-enterprise and who on December the 31st, 2019 employed at least one person, but no more than 249 full-time employees (if they did not employ anyone on that day, we take into account employment as of the 31st of  July 2020) and whose annual net turnover for 2019 did not exceed EUR 50 million or whose total balance sheet for 2019 did not exceed EUR 43 million.

Criterion of decrease

The basic condition is that the entrepreneur shows min. 30% decrease in revenues.
A microentrepreneur may show a decrease for the period from April the 1st to December the  31st, 2020 compared to the corresponding period of 2019 or for the period from October the 1st to December the 31st, 2020 compared to the corresponding period of 2019.

Small and medium-sized entrepreneurs for the period from November the 1st to December the 31st, 2020 compared to the corresponding period of 2019 or for the period from January the 1st to March the 31st, 2021 compared to the corresponding period of 2019.

The amount of the subsidy for micro-entrepreneurs

The amount of the subsidy obtainable by the microentrepreneur is calculated as the product of the number of employees as of September the 30th, 2020 and the base amount of the subsidy depending on the amount of income decrease. With a decrease of 30% and more, it amounts to PLN 18,000 per employee. With a drop of 60% and more, it amounts to PLN 36,000 per employee.

A maximum of PLN 36,000 per one employee - if the employer did not use the PFR 1.0 Financial Shield program, or PLN 72,000 if he used this program. The maximum limit is PLN 324,000.

The amount of subsidy for SME

The amount of the subsidy depends on the Fixed Costs for the period from November the 1, 2020 to March the 31st, 2021.
The maximum amount of the subsidy is 70% of the fixed costs for the above-mentioned periods. Its value may not exceed PLN 72,000 per employee - if the SME did not receive support under the Financial Shield Program PFR 1.0 or PLN 144,000 - if such support was received. However, the limit is PLN 3,500,000.

Settlement of subsidies for micro-entrepreneurs

The subsidy may be fully redeemed. The entrepreneur must continuously run a business from the date of submitting the application until December the 31st, 2021, and in 2021 he must maintain the average annual employment at least at the same level as in 2020.

Settlement of subsidies for SME

The subsidy may be fully redeemed. The entrepreneur must, continuously run a business from the date of submitting the application to December the 31st, 2021, and also settle the surplus of the subsidy received until October the 31st, 2021 to January the 31st, 2022. The entrepreneur will therefore be obliged to return the subsidy in an amount exceeding 70% of the actual fixed costs.

Submission of applications

The subsidy is granted on application. Applications can be submitted from January the 15th to February the 28th, 2021 via e-banking.

Benefits are to be paid within 48 hours of submitting the application.

More in the article by Michał Kacprzyk, Natalia Basista and Agnieszka Piasecka „How to use the PFR 2.0. Financial Shield for micro, small and medium-sized companies“ for Dziennik Gazeta Prawna (article from 22 January 2021).