Luxembourg's General Directorate for Small and Medium-Sized Enterprises has announced the extension and strengthening of support measures for businesses affected by the COVID-19 pandemic.
Given that the pandemic and its economic consequences persist and that the European Commission has broadened and extended the temporary framework for state aid, the Luxembourg government has decided to strengthen its support measures for companies affected by the COVID-19 crisis. On Friday 12 February 2021, the Government Council thus approved, on a proposal from the Minister for Small and Medium-Sized Enterprises, Lex Delles, an extension of the new stimulus aid and the aid scheme to support uncovered costs put in place by the law of 19 December 2020.
In order to provide companies with the necessary support to get through the current crisis while encouraging them to continue their activities as far as possible, the aid scheme to support uncovered costs will cover up to 25% of monthly turnover for the calculation of revenue for the period from February to June 2021 (provided that a legal closure is imposed). Through this measure, up to a quarter of business turnover will not be taken into account, which is expected to benefit cafetiers and restaurateurs who offer a take-away service or provide home delivery. Added to this is the decision to take into account all uncovered costs for the calculation of the aid for the period from February to June 2021 and for companies subject to a legal closure respectively those which have suffered a loss of turnover of at least 75% due to legal restrictions on gatherings. Aid for uncovered costs is also extended for three months, i.e. until June 2021 inclusive.
In addition. young companies, which were created in an uncertain economic context, can now benefit from the aid scheme for uncovered costs - even if they started their activities after 31 October 2020, as the new deadline for starting activities is now 31 December 2020. It has also been decided that companies whose loss of turnover for the month of January 2021 is less than the 25% required can still benefit from the stimulus aid for the month of January 2021 if they have been the subject during this month of a legal obligation to close (e.g. non-food retail stores, gyms, etc.). The recovery aid is also extended for three months, i.e. until June 2021 inclusive.
Luxembourg's Minister for Small and Medium-Sized Enterprises, Lex Delles, noted that “the European Commission has given us the means to broaden support for our economy, in particular by increasing the aid ceiling, and we will seize this opportunity. The Luxembourg government has therefore decided to strengthen assistance measures in order to provide businesses with the support they need to get through this crisis. It is important for me to stress that we do not limit ourselves to financial aid, however, but encourage companies to continue operating as much as possible. However, it is essential that eligible companies apply for assistance. In order to ensure that each eligible company is aware of the aid from which it can benefit, the General Directorate for Small and Medium-Sized Enterprises, the Chamber of Commerce and the House of Entrepreneurship will launch an information campaign. Finally, it should be noted that the General Directorate for Small and Medium-Sized Enterprises has paid nearly €300 million to companies and the self-employed since the start of the COVID-19 pandemic”.
