European Commission gives State aid boost to SMEs adversely impacted by COVID-19

Jul 06, 2020

The European Commission has made its third amendment to the State aid Temporary Framework in order to further support the micro, small and start-up companies adversely impacted by the COVID-19 outbreak. This amendment extends the Temporary Framework to enable Member States to provide public support to all micro and small companies, even if they were already in financial difficulty on 31 December 2019. 

The main purpose of the Temporary Framework is to provide targeted support to otherwise viable companies that have entered into financial difficulty as a result of the pandemic. The framework does this by:  

  • Providing support to support micro and small companies including start-ups

  • Creating incentives for private investors to participate in coronavirus-related recapitalisation aid measures

  • Ensuring the protection of the Single Market and ensuring a level playing field