Govt to support Brexit affected businesses

The government will support companies that have been negatively affected between 1 January 2020 and 31 August 2023 by the UK’s withdrawal from the EU, said the Ministry of Economic Affairs and Employment in a press release.

The President on Thursday approved the Act on the National Implementation of the Brexit Adjustment Reserve.

Funds from the Reserve will be used to support the companies and the support is channelled as business development aid from the Centres for Economic Development, Transport and the Environment (ELY Centres).

The Decree on Discretionary Government Grants for the Development of Business Operations in 2021–2028 lays down further provisions on the national implementation of the Reserve.

The amendments also concern a new lump sum payment and the maximum amount of support for improving companies’ operating environment.

The amendments to the Decree will enter into force at the beginning of 2023.

Business development aid is a discretionary government grant that the ELY Centres can award to SMEs for innovative development measures and investments promoting growth and international projects.

A grant may also be awarded to a large company for investment in a new unit, business area, product or service.

Applications for a grant payable from the Reserve must be submitted by 31 August 2023. The grant from the Reserve must be paid no later than 31 December 2023, unless there are special reasons for deciding otherwise.

Adverse impacts on a company’s business operations include a decrease in turnover, dismissals, shutdown of operations and a reduction in exports or imports.

The impacts may also include situations in which a subcontractor in the supply chain has lost orders even though it does not have direct exports to the UK. Grants may be awarded to projects that reduce such adverse impacts on the company’s business operations. The projects may involve exploring replacement markets, launching new markets, participating in international trade fairs or adapting products or services to the UK or other markets.

EUR 9 million from the Brexit Adjustment Reserve is available for business development aid in mainland Finland. The grants will be awarded by the ELY Centres of North Ostrobothnia, South Savo, Central Finland and Häme.