COVID-19 does not discriminate - it is having a significant and unprecedented impact on businesses of all sizes.
Many businesses are having to contemplate not only job losses, but whether they will be able to survive the next few months or, in some cases, the next few weeks.
Compliance with the State aid regime in the current climate will not be high on the list of priorities but, even in these tumultuous times, the UK has to comply with the State aid regime.
The Commission has set out a variety of options that Member States can use to provide vital financial support to businesses without falling foul of the State aid rules.
The UK Government has announced a variety of funding, support measures and loans it will put in place to support UK businesses. It is likely that the most common intervention by the UK Government will be direct grants, repayable advances or tax advantages so we have considered this form of aid specifically.
This form of financial support can be provided to businesses and will be considered an appropriate, necessary and targeted solution during the current circumstances. It will be considered compatible State aid if the following conditions are met:
Please note that there are specific conditions for for agricultural, fisheries and aquacultural sectors.
The Commission has also provided guidance on providing compatible State aid for:
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