Supporting SMEs to reduce the economic damage caused by Brexit

The government has sent a bill to the Swedish Parliament to implement the Brexit Amendment Reserve nationwide. Funds from the reserve will be used to support businesses that have suffered from the negative consequences of the UK’s exit from the European Union. The law is necessary so that the funding allocated to Finland can be used.

According to the bill, the law should include provisions on the responsible national authorities and on the system of support that will be applied to the support granted by the reserve. The Brexit Amendment Reserve must be usable to support the development of businesses in mainland Finland and therefore temporary changes must be made to the State Support Act for Business Development 2021-2028 as well as changes to the technical nature of certain other laws.

Funds must be transferred from the Brexit adjustment reserve to SMEs via NTMs in the form of support for developing companies

The implementation of the new TFI should be based on the existing national system of management and oversight of regional and structural policies. In the bill, it is proposed that the reserve in Finland be implemented with the help of the established support system. The grant should be directed to support the development of companies awarded by NTM Centers, which is defined in the State Support Act for the Development of Business Activities 2021-2028.

Corporate development support is a state support in accordance with the examination that can be given to small and medium-sized companies for innovative development measures related to growth or internationalization as well as for investments.

Project financing procedures remain essentially unchanged. Since EU funds are used for funding, the purpose of the hold must be taken into account when granting support. More detailed provisions will be made on the additional terms that follow from the EU Regulation in the Regulation on State Assistance for the Development of Business Activities. Support is provided by NTM centers in Northern Ostrobothnia, Southern Savolax, Central Finland and Tavastland. The subsidy should be flexibly usable from the national framework without county quotas.

A maximum of €23.2 million has been provisionally reserved for Finland, of which €9 million is a grant permission that is proposed to be included in the state budget for 2023. However, according to a preliminary assessment, most of the funds reserved for Finland will not be used for the purpose, because the exit of the United Kingdom of Great Britain and Northern Ireland from The European Union has not had any significant negative economic consequences for Finnish SMEs.

The proposed laws are scheduled to enter into force at the beginning of 2023

The bill relates to the 2023 Budget Bill and is to be dealt with in connection with it. The proposed laws are due to enter into force on January 1, 2023. Subsidies funded with funds from the reserve must be granted and paid during 2023.

more information:
Petri Habalinen, Consulting Officer, Ministry of Labor and Enterprise, Tel: 029 4922506
Eliisa Hujala, Special Expert, Ministry of Labor and Enterprise, Tel: 029 4949506