Who can receive a loan from the Labor Fund?
The loan may be used by micro-entrepreneurs referred to in Article 7(1)(1) of the Act of 6 March 2018. Entrepreneurs' Law (i.e. an entrepreneur who in at least one year out of the last two financial years fulfilled jointly the following conditions:
- employed fewer than 10 employees on average per year, and
- achieved annual net turnover from sales of goods, products and services as well as from financial operations not exceeding the PLN equivalent of EUR 2 million, or the sum of assets of its balance sheet drawn up at the end of one of these years did not exceed the PLN equivalent of EUR 2 million),
who were in business before March 1, 2020, to cover the ongoing costs of operating that business.
Micro-entrepreneurs who do not and have never hired employees can also apply for the loan.
Who makes the loan and under what conditions?
A staroste (i.e., the starost of a county or the president of a city with county rights, exercising authority over a county labor office, or the director of an appropriate labor office acting under the authority of a starost or the president of a city) may, on the basis of an agreement, grant a one-time loan from the funds of the Labor Fund to cover the current costs of conducting business activities to a microentrepreneur who conducted business activities before March 1, 2020.
The Governor is authorized to pursue claims for unpaid loans.
What is the maximum loan amount and what is the interest rate?
The loan is granted from the funds of the Labor Fund up to the amount of PLN 5,000, and its interest rate is fixed and amounts to 0.05 of the promissory note rediscount rate adopted by the National Bank of Poland.
How long is the loan repayment period?
The loan repayment period cannot be longer than 12 months, with a grace period for repayment of principal and interest for 3 months from the date of the loan.
Can the loan repayment period be extended?
The Council of Ministers may, in order to counter COVID-19, by regulation, extend the period of repayment of the loan, beyond the stipulated 12 months, taking into account the duration of the epidemic emergency or epidemic state and the effects caused by them.
Can a loan be forgiven?
The loan together with interest, at the micro-entrepreneur's request, may be written off provided the micro-entrepreneur conducts business activity for a period of 3 months from the date the loan was granted. In the application for cancellation, the micro-entrepreneur declares that he/she has conducted business activity for a period of 3 months from the date the loan was granted.
Are there consequences for making a false statement on a loan forgiveness application?
The statement in the application for loan cancellation shall be made by the micro-entrepreneur under penalty of criminal liability for making false statements, as follows: "I am aware of the criminal liability for making a false statement". This clause replaces the authority's instruction on criminal liability for making false statements.
Does the support - a low-interest loan from the Labor Fund for microentrepreneurs - constitute state aid?
The support consisting in granting a low-interest loan from the Labour Fund for micro-entrepreneurs (value of the loan without interest) constitutes state aid aimed at remedying a serious disturbance in the economy, referred to in Section 3.1 of the Communication from the Commission - Temporary framework for state aid measures to support the economy in the context of the ongoing COVID-19 epidemic (2020/C 91 I/01) (OJ EU C 91I of 20.03.2020, p. 1).
The Applicant shall include with the loan application a completed Form of Information Submitted when applying for assistance to offset adverse economic consequences due to COVID-19.
Where should I apply for a loan for microentrepreneurs from the Labor Fund?
A micro-entrepreneur shall submit an application for a loan to the county employment office with jurisdiction over the place of business activity, after a call for applications is announced by the director of the county employment office. Applications should be submitted in electronic form via the platform Praca.gov.pl or in paper form to the office.
Submission of application and contract through the platform Praca.gov.plafter they are equipped with a qualified electronic signature or a trusted signature, will allow to handle the case without the need to visit the county employment office and will significantly accelerate the receipt of the loan.
Downloadable forms can be found at
https://radom.praca.gov.pl/dla-pracodawcow-i-przedsiebiorcow/tarcza/pozyczka