Background information

Business Finland has launched two new financial services owing to the COVID-19 outbreak. They are intended for SMEs in Finland that employ 6–250 people and for midcaps that may employ more than 250 people but have an annual turnover of less than €300 million.

In March 2020, the Government allocated €700 million of its 2020 supplementary budget for grants provided by Business Finland. Business Finland has established two new financial services owning to the COVID-19 outbreak.

Business Finland is a state-owned organisation that funds companies and research groups work for research, development and innovation activities.

Content of measure

Business Finland's grants are intended for Finnish-based SME's (6-250 employees) and midcaps (companies that have an annual turnover of less than €300 million but may employ more than 250). Companies from the following sectors can apply for the grant: tourist, creative and performing industry and all sector where subcontracting chains either have been affected or will be negatively affected by COVID-19.

Funding can be granted for two types of projects: feasibility studies or development projects. A company that wants to do a feasibility study that investigates new businesses and ways to organise production can apply for a preliminary fund. The grant covers 80% of the project's total costs and the maximum amount is €10,000. Development funding has a maximum limit of €100,000 and it also covers 80% of the project costs. Development funding is intended for companies to create new product-or production related solutions.

Use of measure

As of 26 August 2020, the number of applications was approximately 29,000. The number of companies that had received financing from Business Finland was approximately 19,000.

In total €912 million has been granted for companies and €617 million has been already paid out.

The sector that received most financing was wholesale and retail trade (approximately €150 million). This was followed by construction (€93 million) and the programming and gaming industry (€78 million).

Target groups

Workers	Businesses	Citizens
Does not apply to workers	SMEs Other businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public support service providers	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

No information available.

Views and reactions

No information available.

Sources

• 26 February 2020: Government increases business financing due to COVID-19 and provides EUR 1 billion in direct subsidies (tem.fi)
• 27 March 2020: Funding for Business Development in Disruptive Circumstances (www.businessfinland.fi)
• 01 June 2020: Legislative proposal regarding support for business costs to Parliament this week, applications for coronavirus-related support provided by Business Finland and ELY Centres accepted until 8 June (tem.fi)
• 01 September 2020: COVID-19 update (Korona tilannekuva) (valtioneuvosto.fi)