Small Businesses, Self-Employed Receive Total of €16.5m Emergency Assistance

Luxembourg's General Directorate for Small and Medium-Sized Enterprises has announced the payment of €16.5 million in emergency funds for very small businesses and the self-employed during the COVID-19 (coronavirus) crisis.

In the context of the current crisis, the General Directorate set up an emergency fund for very small businesses and the self-employed who can thus benefit from immediate non-repayable financial assistance of €5,000. To date, around 14,600 requests have been recorded. 4,800 such requests have been processed and more than 400 questions were answered electronically. In just eight days, around 3,300 applicants have already received financial assistance, equivalent to a payment of €16.5 million.

In this context, Luxembourg's Minister for Small and Medium-Sized Enterprises, Lex Delles, stressed that “we provide immediate financial support to very small businesses as well as to the self-employed. They are generally the most vulnerable to unpredictable events such as COVID-19, which is why it is essential to react quickly and effectively. The General Directorate of Small and Medium-Sized Enterprises thus processed around 4,800 files in eight days and was able to pay €16.5 million to very small businesses and the self-employed. We will continue to analyse each file quickly and carefully to ensure efficient support. However, we would like to point out that approximately 1,900 incomplete files had to be returned. It goes without saying that only complete applications can be processed quickly and efficiently”.

It is recalled that all applicants must simultaneously meet three criteria. This measure is therefore intended only for respectively independent companies with a valid establishment authorisation issued by the General Directorate and whose total workforce does not exceed nine employees. This assistance is intended only for businesses and the self-employed who have had to interrupt their activity following the introduction of governmental measures in response to COVID-19 on 18 March 2020. The applicant company or self-employed person must also have achieved an annual turnover of minimum €15,000.

The General Directorate also announced that it has accelerated the payment of requests for investment aid for small and medium-sized enterprises (SMEs) in order to alleviate potential liquidity problems. About €4 million were paid to SMEs in this context. Any SME wishing to carry out an investment project which aims to promote the creation, extension, diversification and fundamental change of the production process can benefit from investment assistance.