Government supports businesses with an extensive economic package – additional financing of EUR 10 billion made available to companies through Finnvera
The Government has prepared an extensive package to support companies and to alleviate the negative effects of the coronavirus epidemic. The Government will make additional financing of EUR 10 billion available to businesses through Finnvera. The principal operating model is offering guarantees to banks that grant loans. In addition, the state will increase its coverage of Finnvera’s credit and guarantee losses from 50% to 80%.
“We are taking determined steps to support companies in this exceptional situation caused by the coronavirus epidemic. By making additional financing available through Finnvera, Business Finland and ELY Centres, we are making companies better equipped to pull through,” says Mika Lintilä, Minister of Economic Affairs.
EUR 12 billion available for business financing through Finnvera
The Government has prepared a proposal to increase Finnvera Oyj’s domestic financing authorisations from the current maximum of EUR 4.2 billion to EUR 12 billion.
Under its current authorisation, Finnvera Oyj is able to raise its business financing by EUR 2 billion. The increase in its authorisation to EUR 12 billion will now make an additional EUR 10 billion available to companies. In addition, the state will increase its coverage of Finnvera’s credit and guarantee losses from 50% to 80%. This allows Finnvera to take bigger risks in these present conditions of economic uncertainty.
Business Finland allocated an additional EUR 150 million for business support measures
Business Finland’s grant authorisations will be increased by EUR 150 million to permit immediate business support measures.
On 19 March 2020, Business Finland launched two new financial services to mitigate the economic impact of the coronavirus epidemic. These services are intended for SMEs and midcaps operating in Finland whose business is suffering from the coronavirus situation.
Financial services are intended for at least tourism and auxiliary tourism services, creative and performing industries and all sectors where subcontracting chains are affected. The funding is intended for companies to explore and tap into new business opportunities in emergency conditions. The first funding decisions will be made immediately on 20 March 2020.
A substantial increase for companies’ business development support
ELY Centres’ grant authorisations for business development projects will be increased by EUR 50 million.
The additional authorisation will be used to support SMEs particularly in the service sector but also in other sectors as necessary to manage and prevent the effects of the coronavirus.
More resources for business advisory services
Financial resources of EUR 500,000 will be allocated to the Talousapu financial assistance service for entrepreneurs. In addition, a national model to help entrepreneurs facing financial and payment difficulties will be implemented.
“These are the measures we have now taken to support companies facing hardship due to the coronavirus, but needless to say, more support will be required. We will continue to monitor the situation closely, and make the necessary decisions quickly,” Minister Lintilä says
Petri Peltonen, Under-Secretary of State, Ministry of Economic Affairs and Employment, tel. +358 50 62663
Antti Siika-aho, Special Adviser to the Minister of Economic Affairs, Ministry of Economic Affairs and Employment, tel. +358 295 047 228
Government submits supplementary budget proposal to Parliament due to the coronavirus