State aid: Commission approves €120 million Austrian scheme to support companies in Lower Austria affected by coronavirus outbreak

The Commission has approved a €120 million Austrian scheme to support companies in Lower Austria affected by the coronavirus outbreak. The scheme was approved under the Temporary Framework. Under the scheme, public support will be provided in  the form of direct grants, guarantees and subordinated loans with subsidised interest rates. The measure is open to companies of all sizes active in all sectors, except the financial, agriculture, fishery and aquaculture sectors. The aim of the measure is to facilitate access to external financing by the beneficiaries and to mitigate the sudden liquidity shortages they are facing as a result of the coronavirus outbreak. The Commission found that the scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) with respect to the direct grants, aid will not exceed €800 000 per company as provided by the Temporary Framework; and (ii) guarantees and subordinated loans under the measure fulfil the minimum levels for guarantee premiums and credit risk margins. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State and to fight the health crisis, in line with Article 107(3)(b) TFEU and with the conditions set out in the Temporary Framework. On this basis, the Commission has approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58360 in the State Aid public case register on the Commission’s competition website once any confidentiality issues have been resolved.