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Amendments to the Act on Loan Redemption for Micro-Enterprises

Amendments to the Act on Loan Redemption for Micro-Enterprises

In the latest draft Anti-Crisis Act 4.0, the government proposes to introduce, among others, changes regarding the settlement of loans granted to micro-enterprises.

Pursuant to the act currently in force, a micro-enterprise may submit to the poviat labor authority an application for a one-time loan of up to PLN 5,000 to cover the current costs of doing business. This loan may be redeemed, but for this to happen, the following conditions must be met:

  1. the micro-enterprise must conduct its business activity for a period of 3 months from the date of granting the loan;
  2. the micro-entrepreneur who has fulfilled the above condition must submit a loan redemption application within 14 days of its fulfillment; is obliged to submit with the application a statement on having run the business for 3 months from the date of being granted the loan.

However, the proposed provisions move away from the need to submit a loan redemption application. It will be redeemed as if “automatically” at the time when the micro-enterprise will have been running its business for a period of 3 months from the date of being granted the loan, without the need to submit an appropriate application.

Since now, the Parliament is still working on this Act, time will show in what shape it will be finally adopted.

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Barbara Śmiałkowska
Trainee Advocate