Finnish Government announced a new form of support to businesses in all industries to cover their costs. This new instrument was decided in negotiations held on 13 May 2020.
The support is intended for companies that have experienced a marked decrease in turnover due to the coronavirus epidemic, and have fixed costs and salary costs that are difficult to adjust.
Support is allocated to companies and sectors most severely affected by the coronavirus.
According to government information, the eligibility criteria include a decrease in turnover. But the exact turnover decrease required to be eligible for support, as well as the amounts of support and levels of compensation, will be determined during further preparations.
What is known so far is that support may be granted for a period of two months. The act on support for business costs is to enter into force as soon as possible.
Companies will be required to submit an electronic support request to the State Treasury, which will provide more details of the application process "as soon as possible," the government said.
Companies that have been granted other coronavirus-related financial support are entitled to apply, but amounts will be deducted from the support for business costs.
Other forms of support deducted
Restaurants and sole entrepreneurs in general are those who get the worst of this.
According to the Government, support for the food and beverage service sector and Covid-19 support for sole entrepreneurs and self-employed people will be deducted in full.
In the case of the grants for business development given by Business Finland and the ELY Centres, 70% will be taken into account.
“With this new support for business costs we aim to prevent a wave of bankruptcies and job losses. We want to help companies get back on their feet after the coronavirus crisis and avoid layoffs turning into redundancies. So far, direct support has mainly consisted of support for business development. What we need now is support for covering business costs that would be available to businesses in all sectors. This short-term arrangement helps to keep businesses going,” says Minister of Economic Affairs Mika Lintilä.
“An act on support for business costs is being prepared by the Ministry of Economic Affairs and Employment and the Minister of Finance as a matter of urgency. State Treasury is the organisation granting this support, which makes the application process faster,” explains Minister of Finance Katri Kulmuni.
Business Finland support discontinued
The Government decided that applications for support from Business Finland and ELY centers would no longer be accepted.
Business Finland and ELY Centres will process all applications submitted during the application period for coronavirus-related support. After the application period closes, the standard financial instruments offered by Business Finland and ELY Centres will continue to be available.
Support for sole entrepreneurs and self-employed people during coronavirus is available from municipalities. No changes will be made to this support, Government said.