Finland

Government Measure

In order to support the economy of Finland, the Finnish Government has unveiled financial measures the overall scale of which will amount to €15b. The financial aid package includes, among other things (some of which have not yet been implemented):

• the supplementary increase of the Government's budget including;
  • allocating €700m to Business Finland for additional business support measures (please see further information regarding these measures below);
  • increasing centers for economic development, transport and the environment's (ELY-keskukset) granting mandate for business development projects by €300m;
  • strengthening business advisory services by €500k to the Talousapu financial assistance service;
  • supporting Finnair with an €600m state aid guarantee.
• the State Pension Fund buying bonds of Finnish enterprises in the amount of up to €1b;

Eligibility

As the financial aid package is very extensive, the different measures included in the package are available for different types of companies. For some of the measures, Finnish based SMEs are eligible and for other measures public sector employers are eligible. Hence, we are not able to provide a general answer to this question.

Supervising Authority

The Finnish Government.

Availability

No set time period other than during 2020.

Government Measure

Sole entrepreneurs will be able to apply for funding of €2k from municipalities to cover business expenses.

 The funding can be applied for by a full-time entrepreneur conducting an economic activity alone, regardless of the company form and the way in which the business is financed.

Eligibility

The criteria for the funding are a substantially weakened financial situation and decline in turnover due to the COVID-19 pandemic after year-end 2019. Companies with financial difficulties already before the COVID-19 pandemic and companies with tax debts are ineligible for funding.

Supervising Authority

Finnish municipalities.

Availability

Not yet in force.

Government Measure

In order to alleviate the cash crisis of SMEs, particularly micro enterprises, and to prevent bankruptcies, the Finnish Government has prepared a proposal to extend the powers of the Export Credit Agency Finnvera from the current maximum of €4.2b to €12b with the primary operations model being a state guarantee on loans granted by the banks.

Eligibility

The applicant company must have a minimum Rating Alfa classification of A (Suomen Asiakastieto Rating Alfa classification).

Supervising Authority

The Finnish Government

Availability

No set time period other than during 2020.

Companies must first contact their own bank, which can then grant the financing guaranteed by Finnvera.

Government Measure

The Board of the Financial Supervisory Authority (“FIN-FSA”) has decided to lower Finnish credit institutions’ capital requirements. The decision will increase the lending capacity of the Finnish banks by around €52b.

Eligibility

Credit institutions

Supervising Authority

The Financial Supervisory Authority.

Availability

No set time period other than during 2020.

Government Measure

Business Finland has launched two new financial services (the minimis funding) aimed at mitigating the economic impact of the COVID-19 pandemic.

The financing services are intended to cover nearly all industries with operations that currently are suffering due to market and production chain disruptions caused by the COVID-19 pandemic. The financing is intended for companies to explore and tap into new business opportunities in emergency conditions.

It is also possible for the companies to apply for changes (including in project times, implementation, and project plan contents) in relation to the already ongoing projects to which Business Finland has provided funding.

Eligibility

The financial services are aimed at SMEs that employ 6–250 people and for midcaps that may employ more than 250 people but have an annual turnover of less than €300m.

A company may receive the funding only once, with the exception of special cases.

Funding is aimed at companies that had prerequisites for profitable business operations before the COVID-19 crisis.

Companies may submit their application here.

Supervising Authority

Business Finland.

Availability

Available from 26 March 2020.

Government Measure

The Bank of Finland has taken decisions on measures aimed at alleviating payment difficulties and liquidity shortages caused by the COVID-19 pandemic and ensuring access to funding for households and businesses, particularly SMEs. 

The Bank of Finland has decided to restart its activities in the domestic commercial paper markets. The size of the programme was initially €500m but was increased to €1b on 20 March 2020.

In this way, the supply of funding to Finnish businesses increase. Even though commercial paper is used for funding purposes mainly by larger companies, the purchases will also indirectly ease the funding conditions for smaller companies. This is because they will free up banks’ credit lines for smaller businesses.

On 1 April 2020 the Bank of Finland lowered the applied minimum size threshold on credit claims for domestic usage to €25k.

Supervising Authority

The Bank of Finland.

Availability

No set time period other than during 2020.

The lower minimum size threshold on credit claims will take effect immediately.