€40.5m Paid Out in COVID-19 State Aid to SMEs and the Self-Employed

In the context of the COVID-19 crisis, Luxembourg's Ministry of Middle Classes has announced that it has paid around €40.5 million to small businesses and the self-employed as part of non-repayable financial aid.

Around 6,000 applications were received for direct, non-repayable aid of up to €5,000 for very small businesses (<10 staff) that had been forced to close have received a favourable opinion, equivalent to a payment of €30 million. Regarding the additional non-repayable aid of €5,000 intended to support all micro-enterprises which have suffered a significant loss of their turnover due to the pandemic, it is clear that approximately 1,050 applicants have received financial aid which is equivalent to a payment of €5.25 million.

The Ministry also focused its attention on companies employing between 10 and 20 people by introducing an emergency allowance of €12,500 in their favour. So far, around 90 applicants have received financial assistance, equivalent to a payment of €1.125 million.

The self-employed, essential players in the Luxembourg economy who are equally affected by the financial consequences of COVID-19, can benefit from non-repayable financial assistance of €2,500. Around 1,670 files received a positive opinion, which amounts to a payment of €4,175 million. In order to strengthen the support system for the self-employed, an additional non-reimbursable allowance varying between €3,000 and €4,000 has been put in place. Approximately 897 requests have been registered and are being processed.

In addition to this non-repayable aid, there are other measures intended to support small and medium-sized enterprises, in particular a repayable advance of a maximum amount of €500,000 intended to remedy the temporary financial difficulties linked to COVID-19. Around 520 requests received a positive opinion and around €31.5 million has been paid.