New action, with a total budget of EUR 330 million, the Ministry of Development and Investment, to provide working capital to small and medium-sized enterprises, which have main KAD or KAD with the highest revenues in the catering industry.
Franchise companies are included, provided that certain regulatory criteria of the NSRF are met.
Based on the budget of the new Action, it is estimated that 34,000 out of 80,000 catering companies will be subsidized with a non-repayable, unsecured and tax-free grant, in the form of Working Capital for the purchase of materials and raw materials.
The Action aims to support the reopening of all catering establishments affected by the effects of the COVID-19 outbreak.
Conditions for participation
- Activity in the catering industry (main KAD or KAD with the highest revenues)
- Turnover drop in 2020 compared to 2019 over 30%, for existing businesses.
- For start-ups (starting from 1/1/2019 to 31/12/2019) the turnover drop is calculated with an equal number of operating days, while the companies established after 1/1/2020 will automatically enter into action without calculating this criterion.
- The companies that were under construction in 2019 and started to have activity - income in 2020, will be considered for the program as established within 2020 and they will also enter automatically.
- Obliged companies to submit periodic VAT returns.
Catering Restart Action Budget
The 7% of turnover from activity in Catering (from the main KAD or from the KAD with the highest revenues) for 2019.
For start-ups (starting after 1/1/2019) Working Capital will be calculated as follows:
[(turnover 2019 or 2020) / number of operating days] * 365 * 7%
The maximum amount of aid is set at 100,000 euros per VAT.
Purchase of materials and raw materials for the first 2-3 months of restarting the operation of the company
Duration of Action Implementation
The Working Capital for the purchase of raw materials must have been consumed by 31/12/2021. Businesses must submit by December 31, 2021 the purchase invoices of the relevant products
The evaluation will be immediate and the disbursement of the grant will take place immediately after the application and approval of the application
Business applications will be accepted until July 31, 2021, in order to integrate the seasonal companies in the sector and are evaluated as follows:
- For existing businesses: reduction of the turnover of the year 2020 compared to 2019 from 30% based on the periodic VAT declarations and the declared expenses
- For start-ups (starting from 1/1/2019 to 31/12/2019) the drop in turnover is calculated with an equal number of operating days.
- For companies established after 1/1/2020, the criterion is not calculated and they enter into action automatically. Similarly, the companies that were under construction in 2019 and started to have activity - revenue in 2020.