State aid: Commission approves €25 million Slovak scheme to support innovative companies with limited access to credit facilities in the context of coronavirus outbreak

The European Commission has approved a €25 million Slovak scheme to support innovative companies with limited access to credit facilities in the context of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The public support, which will take the form of convertible loans with maturities between 18 to 36 months, will be open to companies with a scalable innovative product or service with potential for significant growth in international markets. The purpose of the scheme is to help innovative companies access external financing at a time when the normal functioning of credit markets has been severely disrupted by the coronavirus outbreak. The Commission found that the Slovakian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the amount of aid will not exceed €800,000 per company as provided by the Temporary Framework, and (ii) the aid can be granted until the end of the year. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission 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.58054 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.