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New Fund to support businesses affected by floods

30.10.2024

In response to the September flooding that affected regions in south-western Poland, the government is launching a special Support Fund. It will support entrepreneurs in rebuilding and securing business in areas affected by floods who have suffered, for example, due to the reduced inflow of tourists. With the total value of up to PLN 350 million, the fund is co-created by the Ministry of Development Funds and Regional Policy (MDFRP) and Bank Gospodarstwa Krajowego (BGK). This is in response to the urgent needs of local businesses in the Dolnośląskie, Lubuskie, Opolskie and Śląskie Voivodeships.

New Fund to support businesses affected by floods

The Minister for Development Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, signed an agreement with BGK today under which the first tranche of support for entrepreneurs, worth PLN 100 million, will be released. This will be a new and additional financial instrument, significantly broadening the spectrum of support for companies, compared to that already offered under the Special Purpose Flood Act.

Financial support to rebuild operations and strengthen the resilience of businesses

The Fund will enable entrepreneurs to cover current costs, settle liabilities, pay salaries and rebuild or modernise damaged infrastructure. Where warranted, companies will be allowed to relocate to areas less prone to flooding.

The Support Fund provides for preferential, long-term financing (repayment period of up to 10 years, 12-month grace period for the principal and interest) with the possibility to cancel up to 90% of the debt.
The fund will cover both investment aid for companies and the coverage of their running costs. Further tranches of support worth up to PLN 250 million are to be released as needed, bringing the total budget of the Fund to PLN 350 million.

Support will be available for businesses affected directly or indirectly, for example due to a reduced inflow of tourists. Among other things, the funds can be spent to settle current liabilities, pay employees' salaries and rebuild or upgrade flood-damaged facilities, which will help increase resilience to future crises. In justified cases, businesses will also be able to relocate the workplace to a location not at risk of being flooded, to renovate and rebuild facilities, repair or purchase equipment.

Support Fund: financial security and rapid implementation

The Fund is complementary to the support under the Special Purpose Flood Act, and entrepreneurs can expect to receive the first funds in about a month. Regional intermediaries selected by BGK in all four voivodeships affected by floods will be involved in providing assistance. The support will allow businesses to start back up quickly, securing local jobs and fostering the stabilisation of the regional economy.

The Fund is financed from the 'reuse' funds, i.e. repayments of previous loans granted during the COVID-19 pandemic. Regional funding programmes may also be used in 2025 to extend the support if necessary.
Thanks to the government's comprehensive and rapid response to the aftermath of the September floods, the new support for entrepreneurs will rebuild the region's economic potential and strengthen it for the future, representing an important step in the long-term support of businesses affected by natural disasters.
 

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