Luxembourg's General Directorate for Small and Medium-Sized Enterprises has announced the extension of state aid schemes linked to COVID-19 until the end of October 2021.
On 2 June 2021, Luxembourg's Government Council approved a bill aimed at extending two state aid schemes linked to COVID-19 for a period of four months. Consequently, the new stimulus aid and the aid scheme to support the uncovered fixed costs of companies in the hospitality, entertainment, events and cultural sectors, whose activities remain directly affected by COVID-19-related health measures, have been extended until October 2021 inclusive.
However, the intensity of these aid schemes will be adapted.
The amount of the stimulus aid subsidy, which is linked to the condition that the company has suffered a loss of at least 25% in monthly turnover, will remain unchanged for the months of July and August 2021: €1,250 per self-employed person and per employee working during the month for which the aid is requested and €250 per employee in full short-time work during the month in question. For the months of September and October 2021, the subsidy amount will decrease to €1,000 euros per self-employed person and per employee, whilst the amount for employees in short-time work will remain unchanged.
Regarding the aid scheme to support uncovered fixed costs, which is linked to the condition of a loss of monthly turnover of at least 40%, the maximum amount of the subsidy will be adapted: this amount cannot exceed €20,000 per month for microenterprises, €100,000 per month for small businesses and €200,000 per month for medium and large businesses. In addition, the subsidy rate of the eligible amount will return for all companies to the level initially provided for by the law of 19 December 2020 aimed at setting up a temporary state contribution to the uncovered costs of certain companies, i.e. the subsidy rate will be 90% of the eligible amount for micro and small enterprises and 70% for medium and large enterprises.
Luxembourg's Minister for Small and Medium-Sized Enterprises, Lex Delles, explained: “The Luxembourg government regularly analyses its various aid measures in order to guarantee effective support. Anxious to provide businesses heavily affected by the economic consequences of the current crisis with the necessary assistance, it was decided to extend certain aid schemes. However, this extension goes hand in hand with a gradual withdrawal from temporary exceptional aid. Although the situation in certain sectors remains fragile, the economic recovery is continuing and calls for a cautious and gradual withdrawal of exceptional state aid”.
Details of all aid schemes are available on guichet.lu. Requests must be made using an online assistant available through the professional area of MyGuichet.lu.
