PFR explanations – definition of “Fixed Costs” and rules of spending a financial subsidy obtained

Companies applying for financial support under the PFR 2.0 Financial Shield for micro-companies and SMEs have doubts relating to the definition of "Fixed costs" referred to in the regulations, the amount of which is used to determine the value of the Financial Subsidy applicable to them. The Polish Development Fund (PFR) published explanations concerning the calculation of "Fixed costs" as well as the rules of spending the Financial Subsidy obtained.

"Fixed costs" within the meaning of the program are calculated as the result of determining the actual gross loss incurred in November and December 2020 and the forecast gross loss in Q1 2021. The result obtained should be adjusted by the costs of updating the value of assets (incurred and forecasted) and expected public aid that the applicant will receive in the first quarter of 2021. In this calculation, the Applicant qualifying as an SME should only include data for the months covered by the Program, i.e. XI-XII 2020 and I-III 2021. The Applicant qualifying as an SME should reduce the gross loss by all:

• public aid, which it received for eligible expenditure, the incurring of which falls in the period from 1 November 2020 to 31 December 2020 or from 1 January 2021 to 31 March 2021 (eligible period) – if it has not yet been included in accounting records;
• operational public aid received, which was not used by the Applicant by the time of applying for the Financial Subsidy under the Program, and
• public aid expected by the Applicant, which would cover the gross loss in the eligible period.

The calculation of "Fixed Costs" should not take into account the financial Subsidy received by the Applicant from the PFR as part of the Financial Shield 1.0 Program for MSME.

Detailed information is available at: https://pfrsa.pl/aktualnosci/tarcza-finansowa-pfr-2.0/wyjasnienie-dotyczace-definicji-kosztow-stalych-oraz-zasad-wydatkowania-uzyskanej-subwencji-finansowej.html

Photo: PFR S.A.