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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case GR-2020-37/1292 – measures in Greece

Working capital grants for micro and small enterprises

Χορήγηση κεφαλαίου κίνησης σε πολύ μικρές και μικρές επιχειρήσεις

Country Greece , applies regionally

    • – EL30 Aττική (Attiki)
      – EL41 Βόρειο Αιγαίο (Voreio Aigaio)
      – EL42 Νότιο Αιγαίο (Notio Aigaio)
      – EL43 Κρήτη (Kriti)
      – EL51 Aνατολική Μακεδονία, Θράκη (Anatoliki Makedonia, Thraki)
      – EL52 Κεντρική Μακεδονία (Kentriki Makedonia)
      – EL53 Δυτική Μακεδονία (Dytiki Makedonia)
      – EL54 Ήπειρος (Ipeiros)
      – EL61 Θεσσαλία (Thessalia)
      – EL62 Ιόνια Νησιά (Ionia Nisia)
      – EL63 Δυτική Ελλάδα (Dytiki Ellada)
      – EL64 Στερεά Ελλάδα (Sterea Ellada)
      – EL65 Πελοπόννησος (Peloponnisos)
Time period Temporary, 10 September 2020 – 18 March 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Penny Georgiadou (INE GSEE)
Case created 20 October 2020 (updated 03 November 2020)

Background information

Οn September 2020, a €650 million programme co-financed from European resources (European Regional Development Fund - ERDF), supporting micro and small enterprises was activated in 13 regions affected by the coronavirus outbreak. The 13 regions are: Attica, Central Greece, Crete, Eastern Macedonia and Thrace, Epirus, Ionian Islands, North Aegean, Peloponnese, South Aegean, Thessaly, Western Greece, Central Greece and Western Macedonia. The public support will take the form of direct grants of working capital based on the percentage of the expenses that the beneficiaries had in 2019. The maximum percentage of the company's expenses to be subsidised is 50%. The purpose of the scheme is to support micro and small enterprises that are facing a sudden liquidity shortage due to the coronavirus outbreak.

Content of measure

The government funding of the small and very small enterprises is accepting applications, from businesses that employ less than 50 employees. Public funding covers Working Capital equal to 50% of the company's costs in 2019 with a minimum grant amount of €1,500 up €5,000 (which is differentiated between the regions of Greece) and a maximum of €15,000 up €50,000. The amounts on which each specific grant will be calculated shall be derived from the sum of:

  • the purchasing of goods
  • the buying of raw materials
  • the total costs for the provision of services
  • all rents paid by the company
  • all employee benefits
  • various operating expenses

The calculation of the corresponding working capital (public financing) is derived from the sum of the amounts declared above and the grant covers the 50%.

Also the companies submitting a proposal should:

  • be active in the region concerned.
  • have started operations before 1 January 2019.
  • have as their main activity one of the eligible ACN codes (Activity Code Numbers)

Use of measure

There is no information. The programme is in progress

Target groups

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

Actors and funding

Actors Funding
National government
Company / Companies
Local / regional government
European Funds
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

There is no involvement of social partners.

Views and reactions

According to the President of the Athens Chamber of Tradesmen (EEA), although the measure is positive for enhancing the liquidity of the enterprises, nevertheless the requirements of the programme do not allow to thousands of small and medium-sized enterprises, as well as self-employed persons to participate. On the other hand, the Hellenic Confederation of Commerce and Entrepreneurship (ESEE) strongly supports this action

Sources

  • 17 October 2020: Ο… χάρτης με τα 9+2 ΕΣΠΑ – Ποια προγράμματα «τρέχουν», ποια θα ανοίξουν (eleftherostypos.gr)

Citation

Eurofound (2020), Working capital grants for micro and small enterprises, case GR-2020-37/1292 (measures in Greece), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.