Thursday 28.05.2020

Sole entrepreneurs can apply to municipalities for financing to overcome Covid-19 crisis

The support would consist of a fixed sum which could be used for any business expenses, including fixed costs such as rents.
Sole entrepreneurs can apply to municipalities for financing to overcome Covid-19 crisis

The Ministry of Economic Affairs and Employment and the Association of Finnish Local and Regional Authorities have prepared a financing model for sole entrepreneurs to help them cope in the conditions caused by the coronavirus (koronavirus, in Finnish).

According to the Ministry of Economic Affairs and Employment, sole entrepreneurs will be able to apply for financing from municipalities to address difficulties caused by the coronavirus. Financing will be made available as soon as details regarding the model and its implementation have been resolved.

“The objective of the financial support to sole entrepreneurs is to make sure business activities can continue after the interruption caused by the coronavirus. Municipalities are familiar with the situation of their local sole entrepreneurs, and have a good contact network with the business service providers,” says Minister of Economic Affairs Mika Lintilä.

The support criteria are the same in all municipalities. The state will provide this support in full by allocating 100 million euros reserved for the ELY Centres’ business subsidy granting authorisations in the supplementary budget for 2020.

Businesses that were profitable before the coronavirus-induced interruption will be eligible for support. The support would consist of a fixed sum, which could be used for any business expenses, particularly fixed costs such as rents. The support scheme would run for a fixed term and be in effect for 6 months.

Extended unemployment security

“Helping profitable businesses get over this difficult period not only supports entrepreneurs, but helps us to maintain the vitality of municipalities. Municipal business services make support available quickly and efficiently to those who need it,” says Minna Karhunen, CEO of the Association of Finnish Local and Regional Authorities.

Entrepreneurs may be entitled to this support as well as extended unemployment security. The municipality granting the financing will ensure that the support is not excessive given the scope of the business activities in question.

Municipalities have a sufficient mandate to provide the financing and no new legislation is required to implement the model. Municipalities will make all the necessary arrangements to perform this duty with the Ministry of Economic Affairs and Employment. Municipalities can also perform the duties jointly.

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