Granting existing businesses affected by the pandemic, in areas that suffered major natural disasters: 7th Decision Accepting/Rejecting Objections

The seventh (7th) Decision Accepting/Rejecting Objections has been published in the context of the Action of EPANEK “Granting existing businesses that have affected by the pandemic, in areas that suffered major natural disasters”, regarding the approval of the examination results of two hundred and thirty-five (235) objections.

In particular, the acceptance of two (2) objections for funding applications for a total requested public expenditure of 20,406.31 euros and the rejection of two hundred and thirty-three (233) objections for funding applications for a total requested public expenditure of 2,781,262.83 euros.

The Action Granting existing businesses affected by the pandemic, in areas that have suffered major natural disasters, aims to ensure adequate liquidity to existing businesses affected by the pandemic, in areas that suffered major natural disasters. As well as maintaining business continuity during the COVID-19 outbreak and beyond.

The Action grant provided will contribute to securing part of the required liquidity for the restart of local economic activities. As well as ensuring business continuity. In this way, the maintenance of jobs is also indirectly supported.

Grant affected existing businesses – Action Budget

€26 million grant (€20 million for Small and Medium Enterprises and €6 million for Large Enterprises).

React EU – The Action is funded as part of the Union’s response to the COVID-19 pandemic

Beneficiaries of the Action

Businesses, regardless of their legal form, which operate legally and are active in the areas affected by natural disasters.

Subsidy

Up to 18,000 euros grant per beneficiary company, which will be granted as a lump sum to provide liquidity and cover future operating costs.

Details:

Indicative operating costs eligible for the grant, under the application of simplified cost selection and lump sum calculation, may be the following:

The public funding of each potential beneficiary company is calculated during the funding application based on the submitted historical expenditure data of each applicant company for the operating expenses of the year 2019, as shown in the corresponding tax form E3, and by applying a horizontal rate to the operating expenses of the year 2019.

  1. rents of professional space,
  2. costs of energy, fixed and mobile business telephony, water supply, heating, etc.,
  3. expenses for third party fees (legal, consulting, accounting support, etc.),
  4. promotional and networking expenses (design and printing of advertising forms, posters, advertising listings, expenses for participation in professional exhibitions, corporate website/Creation and/or Upgrade, etc.),
  5. expenses for the supply of consumable materials,
  6. depreciation of fixed equipment (tangible and intangible),
  7. salary costs of company personnel. 

As a basis for determining a flat-rate amount per beneficiary company, the entry of the above indicative costs is taken, as they are grouped in the corresponding fields / codes of the E3 tax form in the year 2019, i.e. in a period when the supported activities were not affected by natural disasters.

Consequently, the sum of the amounts of the fields: 581 (Employee benefits), 585 (Miscellaneous operating expenses) and 587 (Depreciation) of the tax form E3 of 2019 is taken into account. On the determined sum, which is the amount of the total declared expenses, a horizontalrate is applied 50% to calculate the corresponding public funding as a lump sum.

For businesses that have started operations within 2019. The reduced sum of the amounts of codes 581, 585 and 587 of the tax form E3 of the year 2019 is calculated as the total actual sum of the specific codes for the total number of operating days of the year multiplied by 365.

For businesses that have started operations within 2020. The reduced sum of the amounts of codes 581, 585 and 587 of the tax form E3 of the year 2020 is calculated as the total actual sum of the specific codes for the total number of operating days of the year multiplied by 366.

The companies established within 2021, regardless of whether they had income from business activity or not, may receive a lump sum amounting to 2,000 euros.

ATTENTION: For the calculation of the grant, amending tax data (amending E3 declaration or amending VAT), which were submitted after the publication of this Call, are not accepted.

Grant affected existing businesses – Basic Conditions of Participation

Beneficiaries of the grant must, among others, satisfy the following conditions:

  • Submit one Financing Application per VAT number for all facilities they have.
  • To have carried out start of work at the competent DOU until 31.12.2021.
  • To be active (head office or branch or other facility) in the following areas affected by natural disasters and in a separate area of their home for which they are requesting assistance:

– Municipality of Mantoudi-Limni-Agia Anna, (Prefecture of Evia)

– Municipality of Istiaea-Edipsos (Prefecture of Evia)

– Municipal Unit of Arkalochori in the Municipality of Minoa-Pediados (Prefecture of Heraklion)

– Municipal District of Damasio, in the Municipality of Tyrnavos (Prefecture of Larissa)

– Municipal District of Mesochori in the Municipality of Elassona (Prefecture of Larissa)

– Municipal Communities: Amourio, Preitorio, Vlachogianni and Magoula of the Municipal Unit of Potamia of the Municipality of Elassona (Prefecture of Larissa)

– Municipal Unit of Ancient Olympia in the Municipality of Ancient Olympia (Prefecture of Ilia)

– Municipal Communities: Lala, Achladinis, Doukas and Nemoutas of the Municipal Unit of Foloi of the Municipality of Ancient Olympia (Prefecture of Ilia)

– Municipality of Argostoli (Prefecture of Kefallinia)

– Municipality of Lixouri (Prefecture of Kefallinia)

– Municipality of Sami (Prefecture of Kefallinia)

– Municipality of Ithaki (Prefecture of Kefallinia)

– Municipality of West Samos (Prefecture of Samos)

– Municipality of Eastern Samos (Prefecture of Samos)

– Municipal Communities: Vrisas and Stavrou of the Polichnitos Municipal Unit of the Municipality of West Lesvos (Prefecture of Lesvos)

In particular:

a) For the Municipalities of Argostoli, Lixouri, Sami and Ithaca, the beneficiaries are only those businesses of the Regional Unit of Kefallinia and Ithaca that were affected by the “Ianos” phenomenon in September 2020 and for which the autopsy work was not completed in time by the State Aid Committees of the Region, as the details of these businesses are certified by a document of the relevant Region.

b) For the Municipalities of Eastern and Western Samos, the beneficiaries are only those businesses that have been affected due to the restrictions and the prohibition of access to them, as a result of the conditions created by the earthquake of October 30, 2020, such that these businesses are certified as earthquake-affected and their information is confirmed by a relevant document from the relevant Region.

  • To be obliged to submit tax form E3- “STATEMENT OF FINANCIAL DATA FROM BUSINESS ACTIVITY”.
  • To have until 31.12.2021 as the main activity code or as the activity code with the largest income, a CSD that is not included in the NON-eligible CSDs of Chapter 5: “INELIGIBLE FIELDS OF ACTIVITY” (APPENDIX VIII). For businesses with starting operations before 01.01.2020. The control is based on the KAD with the largest revenue, as indicated in the relevant Field of Form E3 (Statement of financial data from business activity) of Tax Year 2019 submitted in the year 2020. For businesses with starting operations within 2020 or within 2021. The control is carried out on the basis of the main KAD activity of either the company or the branch.
  • To have until the date of publication of this Call an active eligible KAD in their facility within the areas of support.
  • To operate legally in the places for which they will apply for aid.
  • To present a reduction in their turnover of the year 2021 of at least 10% compared to the turnover of 2019. For businesses that started operations within 2019, the turnover of the year 2019 is compared to the turnover corresponding to an equal number of days in 2021 (total turnover of 2021 by 365 X number of days of operation in the year 2019). The resulting reduction percentage is rounded to the second percentage decimal place. The participation condition of the first paragraph of this paragraph is presumed to be met in the case of businesses starting operations within the year 2020 or within 2021, as well as in the case of businesses that in the year 2019 demonstrably had no income from business activity of any kind.

For businesses that have an management year from 1 July to 30 June, the turnover of the years 1.1.2019 – 31.12.2019 and 1.1.2021 – 31.12.2021 is declared and compared. The turnovers as derived from the periodic VAT declarations of these intervals.

Enterprises that have entered into franchise agreements, in the capacity of franchisor or franchisee, declare this fact in the financing application and are checked during the verification stage as to whether they are connected enterprises, in order to determine the aid counted for the control of the accumulation of aid of minor importance (De Minimis).

Attention: Beneficiaries who have already submitted a funding application to the Action: “Emergency grant of entertainment businesses, organization of events and exhibitions, event catering, provision of gym and dance school services” and their application is in the evaluation stage or has been approved, do not have the right to submit a funding application. Beneficiaries acquire the right to apply for funding in this Natural Disasters Action: Only in the event that their application in the other Action is rejected.  

Grant affected existing businesses – Subsidized Expenditures

Indicative operating costs that are eligible for the grant, under the application of simplified cost selection and lump sum calculation, can be the following:

  • rents of professional space,
  • costs of energy, fixed and mobile business telephony, water supply, heating, etc.,
  • expenses for third party fees (legal, consulting, accounting support, etc.),
  • promotional and networking expenses (design and printing of advertising forms, posters, advertising listings, expenses for participation in professional exhibitions, corporate website/Creation and/or Upgrade, etc.),
  • expenses for the supply of consumable materials,
  • depreciation of fixed equipment (tangible and intangible),
  • salary costs of company personnel.

Deadline for Electronic Submission: Wednesday 07/12/2022and time 15:00.

See more detailed information on the Action on the Grant of Affected Existing Businesses here.