The first (1st) Decision of Acceptance/Rejection of Objections submitted under the Action "Working Capital Subsidy to Food Service Enterprises for Raw Material Supply - Restarting Food Service" of the ERANEK has been published, regarding the approval of the results of the examination of three hundred and eight (308) objections. In particular, the acceptance of one hundred and eighty (180) objections, with a total requested public expenditure of EUR 1,555,341.95, as well as the rejection of one hundred and twenty-eight (128) objections, with a total requested public expenditure of EUR 1,885,224.22, is approved.

Objective of the Action

The Action aims to subsidize SMEs and Large Enterprises in the catering sector to support them after the restart of their operation, under the covid-19 pandemic, by supplying raw materials necessary for their operation.

Budget of the Action

330 million euros for all the regions of the country, which are divided into 280 million euros for Small and Medium Enterprises and 50 million euros for Large Enterprises.

This amount may be increased to cover all positively assessed applications for funding.

React EU - Action funded as part of the Union's response to the COVID-19 pandemic

Beneficiaries of the Action

Catering establishments, regardless of their legal form, operating in at least one of the following Nace codes :

• 56.10: Restaurant and mobile food service activities;
• 56.21: Catering activities for events,
• 56.29.20: Other catering services,
• 56.30: Beverage supply activities.

Subsidy for the Restart of Catering

The grant amounts to : up to 100,000 euros.

Each company with a distinct VAT number will be awarded a total non-repayable grant in the form of working capital that may amount to a maximum of 7% of the annual turnover for the year 2019.

In the businesses that have done start of works in 2019 or in 2020 a total grant in the form of working capital is given which may amount to a maximum of 7% of the discounted turnover of the year of commencement of operations (2019 or 2020). The opened turnover of the year of commencement of operations (2019 or 2020) is calculated as the total turnover of the year (2019 or 2020) divided by the number of days of operation of the year (2019 or 2020) multiplied by 365 or 366 respectively.

To undertakings which, according to in the year 2019 were in the construction stage and demonstrably had no income from business activity of any kind, attributed Total grant which may amount to a maximum of 7% of total or reduced turnover of the year 2020. For the calculation of the appropriate turnover (total or reduced) the date of their re-operation (first revenue day) in 2020 after the completion of the construction stage is taken into account.

Basic Conditions of Participation in the Food Restart

Businesses should, among other things, satisfy the following conditions:

• Have started work by 31.12.2020,
• Have as their main activity code or activity code with the highest revenue one of the eligible SMRs of Chapter 6: "ELIGIBLE AREAS OF ACTIVITY". For businesses that commenced operations before 01.01.2020, the audit is based on the CAR with the highest revenues, as indicated in the relevant Field of Form E3 (Statement of financial data from business activity) of the tax year 2019 submitted in the year 2020. For businesses that start operations in 2020, the audit is based on the main CAR of activity,
• Keep haplographic or duplicative books of n. 4308/2014,
• Be liable to submit VAT returns,
• Show a decrease of 30% in the turnover of the year 2020, at least in relation to the turnover of 2019,
• The potential recipient of the aid submits one Application for Funding per VAT number, for all its catering facilities.

Undertakings which have entered into franchise agreements, in their capacity as licensor or franchisee, shall declare this fact in the application for funding. They are then checked at the verification stage as to whether they are linked undertakings. This is in order to determine the aid to be counted towards the control of cumulation.

You can see more information about the action here.