Polish NGO`s during the pandemic
What kind of support they can count on?
The pandemic that has accompanied us for many months is a difficult time for everyone. The anti-crisis shield is a series of tools supporting entrepreneurs, employees, but also social economy entities, including non-governmental organizations. For many of them, this support means to be or not to be.
The long months of fighting a pandemic are a difficult time for everyone - including social economy entities. Many of them faced problems with maintaining financial liquidity or paying wages.
Social economy entities can count on support under the anti-crisis shield instruments. Thanks to this, important and valuable jobs are protected, which are often a rescue and a chance to get straight for people at risk of social exclusion.
In the event of a decrease in revenues from statutory activities by at least 30 percent. non-governmental organizations and other public benefit entities may apply for co-financing of employees' salaries from the Labor Fund.
Similar support is also available for those employed in church entities.
So far, these instruments have supported nearly 22.5 thousand. jobs in these entities. The total amount of support is nearly PLN 99.5 million. An application for funding can be submitted via the Praca.gov.pl platform or directly at the poviat labor office.
Social economy entities that conduct business activity may also benefit from similar support provided for entrepreneurs.
Social economy entities conducting economic activity may also count on support in the form of co-financing of remuneration costs from the funds of the Guaranteed Employee Benefits Fund. This applies to a situation where the employer introduces economic downtime or reduces the working time. The support from FGŚP may be used by social economy entities that have recorded a decline in economic turnover (i.e. a decline in sales of goods or services, in terms of quantity or value).
As part of the support from the FGŚP, applications can be submitted in electronic form via the Praca.gov.pl platform or in paper form to the voivodeship labor office.
Voivodship labor offices also accept applications from those social economy entities that intend to use benefits for co-financing from the FGŚP the remuneration of employees not covered by economic downtime or reduced working time (Praca.gov.pl).
Loans for the third sector
From June, non-governmental organizations and entities referred to in Art. 3 sec. 3 of the Act on Public Benefit and Volunteer Work, they can take advantage of redeemable loans financed from the Labor Fund. This solution was previously available to micro-entrepreneurs, including social economy entities conducting business activity.
The new solution prepared for non-governmental organizations is a response to the demands raised by the third sector. Thanks to loans, organizations, especially those with less financial resources, can now settle their liabilities more easily. The loan may be taken to cover expenses related to both statutory and business activities.
So far, 10.7 thousand loans have been positively considered under loans. applications of non-governmental organizations for the total amount of almost PLN 34 million.
A short loan application can be submitted to the poviat labor office competent for the seat of the organization, also via the Praca.gov.pl portal.
Companies from the social economy sector can count on support from other institutions. Thus, entities conducting business activity or paid statutory activity (micro, small or medium entrepreneurs) may apply for flexible loans under the National Social Entrepreneurship Fund. Preferential loans of Bank Gospodarstwa Krajowego help to maintain financial liquidity and can be used for current economic purposes (e.g. payment of current liabilities, including public and legal liabilities, personnel costs, administrative costs, costs of purchasing small equipment). The maximum loan amount is 25 percent the value of the annual turnover, but not more than 100 thousand PLN.
Loans are granted by Financial Intermediaries selected by BGK throughout the country. More information on this subject can be found on the website of Bank Gospodarstwa Krajowego (National Economy Bank).
Importantly, Financial Intermediaries granting loans for start-ups and loans for development under the National Social Entrepreneurship Fund can now apply numerous amenities to new and granted loans (e.g. credit holidays, lower interest rates, extension of the loan repayment period).
Social economy entities can also use the comprehensive services offered by social economy support centers. There, you can get information on various forms of support under the anti-crisis shield, but also get help in preparing an application, or use the purchasing mechanism to facilitate the sale of goods and services.