Wednesday May 05, 2021

Application for corona-hit firms´ 3rd round support in April-May

Published : 09 Apr 2021, 22:32

Updated : 10 Apr 2021, 10:12

  DF Report

Photo: State Treasury.

The third application round for business cost support will begin on 27 April 2021 and the application round for closure compensation will begin on 12 May 2021.

Companies can apply for both forms of support at the State Treasury, said the Ministry of Economic Affairs and Employment in a press release on Friday.

The Act on Support for Business Costs has been amended for making grants to sole entrepreneurs and small companies more flexible and to create a new form of aid, closure compensation, to companies closed down due to the coronavirus epidemic.

The president approved the amendments to the Act on Friday and the Act will enter into force on Monday.

The support for business costs is intended for companies whose turnover has decreased by at least 30% due to the coronavirus pandemic.

Meanwhile, closure compensation is meant for small- and micro-sized companies where customer premises have been closed by law or order of an authority.

“We have updated business cost support to meet the current needs of both small and large companies. In addition, small companies shut down by the authorities due to the epidemic will benefit from a new form of aid. We are also preparing closure compensation for large companies and an event guarantee,” said Minister of Economic Affairs Mika Lintilä.

“Due to the two previous rounds of business cost support, the State Treasury already has experience in granting the aid. Based on the customer feedback, we have succeeded well in the task. That is why we are happy to take the responsibility of organising the third round of business cost support and the new closure compensation,” said State Treasury Insurance Director Jyri Tapper.

The third round of business cost support is intended for companies whose turnover has fallen by at least 30% due to the coronavirus pandemic between 1 November 2020 and 28 February 2021, compared with the turnover in the corresponding period of 2019-2020, as a rule.

All companies can apply for business cost support. In April, the government will issue a decree on the sectors that can apply for support without providing further justification. These include /sectors where turnover has decreased by at least 10% during the period. If a company does not operate in one of the sectors defined in the decree, it must explain how the epidemic has caused a fall in turnover.

A minimum of EUR 2,000 in business cost support will be paid to companies, if they meet the conditions for it. This will help sole entrepreneurs in particular. The amount of support will be based on the decrease in the company’s turnover and actual costs.

To be eligible for business cost support, the company must have a Business ID. The company must also have eligible expenses of at least EUR 2,000 during the support period.

The maximum amount of aid will increase, which in turn will meet the needs of large companies in particular. The maximum amount of aid a company can receive will rise from EUR 500,000 to EUR 1 million.

The government proposes that companies be paid compensation, if they, due to an Act or an official order, have to keep their premises closed in order to stop the spread of the coronavirus. This new form of compensation applies to small- and micro-sized enterprises that employ a maximum of 49 employees. Companies that have been closed down can also apply for business cost support.