The government has prepared a considerable support package to help businesses deal with the ravages of the coronavirus epidemic. The government will provide additional funding of EUR 10 billion to companies through Finnvera. The primary action model is the guarantee activity, according to which the banks provide loans. The state's share of credit and guarantee losses paid to Finnvera will increase from 50% to 80%.
According to Minister of Economic Affairs Mika Lintilä, the target is to provide an additional funding for Finnvera, Business Finland and ELY Centers to help companies overcome the difficult situation.
Finnvera, 12 billion euros for business financing
Under the current competence, Finnvera is able to increase business financing by EUR 2 billion, thus raising the authorities to EUR 12 billion will enable additional financing for companies in amount of EUR 10 billion.
Business Finland will get 150 million euros for business support measures
Business Finland will get an additional 150 million euros to be used for rapid actions in supporting businesses. Business Finland has opened two new financial services aimed at mitigating the financial impact of the coronavirus epidemic. Financial services are aimed at SME's and midcap companies operating in Finland whose business is suffering from coronavirus.
The financial services shall cover all sectors whose subcontracting chains have been or are being affected by the coronavirus situation (for example tourism sector). The first financing decisions will be made already on 20.3.2020.
ELY Centers, mandate has increased by EUR 50 million
The mandate of the ELY Centers for business development projects will be increased by EUR 50 million. Additional money will be used to support business development projects and to help SME's manage and prevent the effects of the coronavirus.
Talousapu counselling service, will be reinforced with a capacity of EUR 500,000
Business advisory services will be strengthened. The financial assistance advisory service for entrepreneurs or Talousapu counselling service will be reinforced with a capacity of EUR 500,000 and a national approach for entrepreneurs in financial and payment difficulties will be implemented.
The full information and the source text can be found at Ministry of Economic Affairs and Employment website.
Published 20.03.2020, FINREPO