The majority of the crowned grants and financing granted to companies ended up in companies operating in the province of Uusimaa, according to the grant statistics of Business Finland, ely centers and the State Treasury.
According to the figures of 22 July, the people of Uusimaa had received less than half of the EUR 1,055 million distributed to the companies, ie EUR 420 million. The second largest, ie 105 million euros, went to Pirkanmaa.
The lowest amount of interest money was allocated to Kainuu and Central Ostrobothnia, where in both companies it received only just over 9 million euros.
Also in relation to the population, Uusimaa and Pirkanmaa received a lot of support: 249 euros per Uusimaa resident and 203 euros per Pirkanmaa resident. However, Lapland surprised the trio of top recipients in proportion to the population, with EUR 38 million equivalent to EUR 217 per inhabitant.
Kymenlaakso’s support pot of just over EUR 20 million is instead divided into Finland’s smallest support amount per inhabitant, ie EUR 119.
Lapland’s tourism companies are supported
In particular, the State Treasury has paid the largest amount of corporate cost support to Lapland in relation to Lapland: of the total EUR 13.5 million granted by 22 July, 1.65 million went to the northernmost Finland, ie EUR 9.33 per inhabitant.
There are about 300,000 more inhabitants in Southwest Finland, but so far EUR 1.37 million has been paid there, leaving EUR 2.86 per inhabitant in the pot.
Most of the State Treasury’s support has been paid to Uusimaa: EUR 5.8 million, or EUR 3.43 per inhabitant.
Director of the Treasury Jyri Tapperin territoriality is not considered in the processing of claims.
– We are looking for those companies that need support to survive the crisis. They are supported regardless of their regional location. Lapland rises pretty naturally to the beak of the pin because the share of tourism companies there is emphasized, and tourism was the first industry to catch up, he says.
Tapper still believes that the differences between the provinces will level off.
– If it is assumed that (at the Treasury) EUR 300 million has been distributed and 13 million have been distributed, 5,000 applications have been submitted and 1,000 decisions have been made and one estimate could be 15,000-20,000 beneficiaries, it is not yet possible at this stage. draw big conclusions about the distribution of subsidies, he says.
Tapper recalls that because the cost subsidy granted by the State Treasury is based on law, any eligible company can receive it and is not affected by geographical location.
Fast-cycling industries at the forefront
Of the industries, the top of subsidies granted by the State Treasury are accommodation (EUR 1.85 million) and sports activities, as well as entertainment and recreation services (EUR 1.71 million). The third is retail with subsidies of EUR 1.54 million and the fourth is land transport and pipeline transport companies with EUR 1.02 million.
Business Finland’s funding has been distributed the most, ie EUR 71.7 million, to software and consulting companies. Wholesale has received EUR 63.7 million and retail EUR 46 million.
Ely centers, on the other hand, have allocated the most funding to restaurants (just over € 15 million), taxis (€ 1.1 million) and software design and manufacturing (€ 1 million). However, the figures are not directly comparable to the amounts distributed by the State Treasury and Business Finland, as the ELY centers record the companies’ industries differently.
Business Finland’s service director Kari Komulainen According to the Commission, it was clear that the first areas in need of subsidies were those, such as the consumer business and the restaurant sector, where the coronavirus disruption was most pronounced.
– At a general level, industry and perhaps also the construction sector are those where the cycles of the industry are quite slow. Products and services are made to order, and once an order is placed, delivery can take several months. In areas like this, the delay in seeing the effects of the corona was longer in places, but largely these are company-specific issues, he says.
Crisis resilience will improve in the future
Komulainen believes that the euros allocated to companies for development activities will significantly promote digitalisation with far-reaching effects. Approximately EUR 820 million has been granted through Business Finland and EUR 224 million through ELY centers.
– For a large number of companies, development measures are related to the fact that the company’s operating model is reformed in a way that does not require a physical encounter. They will adopt practices that will be less sensitive to disruptions like the one we see now, he says.
According to Komulainen, the months ahead are at least as important as those behind us, because the biggest benefit from the funding provided by Business Finland and the ely centers comes as a result of development projects, not just funding decisions.
– All in all, this interest rate crisis will not be overcome by getting an application for financing, but by using the financing and succeeding in creating new useful products and practices for the company.
Several forms of support have been implemented
In March, Business Finland and the ely centers began offering companies corona financing for situation analysis and operational development. Their searches were closed at the beginning of June, and at the beginning of July a cost subsidy through the State Treasury was applied for to cover the fixed costs of companies significantly affected by the interest rate.
In addition, support for sole proprietors has been channeled through municipalities, and the restaurant industry has received its own subsidies through the Keha Center, among other things, as compensation for restricting the operation of restaurants.
State Venture Capital Company Industry has also started to provide stabilization financing to medium-sized companies, but its beneficiaries have not been made public.