The Call for Action "Working capital subsidy to catering companies for the supply of raw materials", with a total budget of 330 million euros, for the provision of working capital to businesses in the catering sector was published today.

The action is funded through the Operational Program "Competitiveness - Entrepreneurship - Innovation" (EPAnEK) of the NSRF 2021 - 2027 and concerns small and medium-sized and large enterprises, which have a main Nace Code or Nace Code with the largest revenues in the catering sector.

According to the announcements of the Ministry of Development & Investments, on Friday 14/05/2021 at 10.00 the application platform for the new Action is expected to open, in order to enable the disbursement of an amount that will be approved within the next few days.

The Action for a non-refundable, non-confiscated and tax-free grant, in the form of Working Capital for the purchase of materials and raw materials, was awaited with great interest in the sector that is currently significantly affected under the coronavirus pandemic (COVID-19).

Action Elements in the catering industry

The Action aims to support the reopening of all catering businesses, which have been affected by the effects of the COVID-19 outbreak.

The support package amounts to EUR 330 million. It is a tool for the restart of businesses in the Catering sector with a non-refundable, non-confiscated and tax-free grant, in the form of Working Capital for the purchase of materials and raw materials.

Working capital subsidy to catering enterprises - Conditions for participation

• Activity in the catering sector (main Nace Code or Nace Code with the largest revenues)
• Turnover drop in 2020 compared to 2019 of more than 30%, for existing businesses.
  • For start-ups (starting from 1/1/2019 to 31/12/2019) the drop in turnover is calculated with an equal number of days of operation, while businesses established after 1/1/2020 will automatically enter the action, without calculating this criterion.
  • Businesses that were under construction in 2019 and started having activity - revenue in 2020, will be considered for the program as established in 2020 and will also enter automatically.
• Businesses liable to submit periodic VAT returns.

Eligible sectors of activity

The eligible Nace Codes in at least one of which the undertaking to be assisted must be active are:

• 56.10 : Restaurant and mobile food service activities All SMRs of subcategory 56.10 are included
• 56.21 : Catering activities for events All Nace Codes of subcategory 56.21 are included
• 56.29.20 : Other food services All Nace Codes of subcategory 56.29.20 are included
• 56.30 : Beverage supply activities All Nace Codes of subcategory 56.30 are included

Action budget

7% of the annual Turnover for the year 2019 is subsidized, as calculated on the basis of the submitted tax returns of this business (Form E3 Tax year 2019 submitted in the year 2020, field 500 Total Revenue from Sales of Goods and Provision
Services).

For start-ups (starting after 1/1/2019) the Working Capital will be calculated as follows:
[turnover 2019/number of days of operation ]3657%

or

[turnover 2020/number of days of operation ]3667%

The maximum amount of aid is set at EUR 100.000 per VAT number.

Eligible costs

Purchase of materials and raw materials for the first 2-3 months of business restart

Duration of Action Implementation

The starting date for eligibility of expenditure is 1 April 2021.

The Working Capital for the purchase of raw materials must have been consumed by 31/12/2021. Businesses will have to provide by 28/02/2022 VAT tax information (Periodic VAT Returns), proving that the aid granted was used to cover the working capital of the company until 31/12/2021

Integration Process

The evaluation will be immediate and the disbursement of the grant will take place immediately after the inclusion and approval of the application

Applications from businesses will be accepted until 31 July 2021, in order to include seasonal businesses in the sector.

The evaluation will be immediate, on a first-come, first-served basis and the grant will be disbursed immediately after inclusion and approval of the application.