Factsheet for measure
FI-2020-13/269
–
Updated
– measures in Finland
Business Finland's new direct business subsidies for SMEs and midcap companies
Business Finlandin uudet rahoituspalvelut pk- ja midcap-yrityksille
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.
Updates
The following updates to this measure have been made after it came into effect.
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06 July 2020
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As of 8 June 2020, the COVID-19 related business development aid granted by Business Finland has been discontinued. It has been replaced by a new instrument that grants financial support for business costs.
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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
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Workers
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Businesses
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Citizens
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Does not apply to workers
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SMEs
Other businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Public support service providers
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
No information available.
Views and reactions
No information available.
Sources
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26 February 2020: Government increases business financing due to COVID-19 and provides EUR 1 billion in direct subsidies
(tem.fi)
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27 March 2020: Funding for Business Development in Disruptive Circumstances
(www.businessfinland.fi)
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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)
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01 September 2020: COVID-19 update (Korona tilannekuva)
(valtioneuvosto.fi)
