Financial support measures for small businesses in Luxembourg

Micro and small commercial and artisanal companies will be able to benefit from additional financial support measures after the adoption last Wednesday of the regulation of the Governing Council of the Grand Duchy.

Companies with between 10 and 20 workers may benefit from a compensation that amounts to a lump sum of 12,500 euros.

In addition, companies with fewer than 10 workers will also benefit from new measures. An additional compensation of 5,000 euros will be awarded to those who, forced to close or stop their activities, suffered a loss of at least 50% of their turnover during the period between April 15th and May 15th.

“We are strengthening immediate financial support for micro and small businesses because they are generally the most vulnerable to unpredictable events like Covid-19. Effective and prompt support is essential in times of crisis,” said the Minister for the Middle Classes, Lex Delles.

Detailed information is available since April 24th on the Guichet.lu website. The form to send applications, which will be processed by the General Directorate of the Middle Classes, is also available on that same website.

 

Source: Paperjam.lu

Extension of the measures taken by the National Security Council in Luxembourg due to Covid-19

On 15th April 2020, the Government Council fixed the guidelines for a deconfinement strategy balanced between public health imperatives and the psycho-social and economic aspects of the current confinement.

As a reminder, the amended Grand Ducal Regulation of 18th March introducing a series of measures in the context of the fight against COVID-19 introduced restrictions or even prohibitions on commerce and artisanal activitiesincluding the closure of construction sites, to contain the spread of the coronavirus. Beyond these regulatory prohibitions, educational activities and the activity of the recycling centres have been suspended.

In the Grand Duchy, the rate of new infections shows a downward trend and thus reflects the effect sought by the confinement measures put in place on 16th March 2020. However, the government has decided to proceed only with a cautious lifting of the confinement measures.

Thus, the deconfinement strategy consists of:

  • Protecting in particular vulnerable groups.
  • Implementing a gradual exit from confinement in phases sufficiently separated from each other.
  • Ensuring, at all times, sufficient hospital capacities in normal and intensive care to be able to handle serious cases in health care institutions.
  • Making the population aware of its responsibilities and to reduce as far as possible the risk of uncontrolled spread by maintaining, or even strengthening, the barrier measures to be observed in any place where people congregate.
  • Implementing preventive measures at work.
  • Ensuring the isolation and close follow-up of new cases of infection.
  • Developing testing capacities and support research in particular with regard to serological tests to measure the acquired immunity of the population.

The resumption of activities can therefore only take place in successive phases that are well thought out in terms of impact. The decision to launch a phase is taken by the Government on the recommendation of the Prime Minister and the Minister of Health, and it is based on close monitoring of the evolution of the number of newly infected people in the population and an estimate of available hospital capacity in the short and medium term.

It is also clear that the Prime Minister and the Minister of Health may submit to the Government Council at any time a proposal to reintroduce stricter confinement measures when, on the basis of the monitoring of the evolution of the situation, it appears that hospital capacities are likely to reach a critical level which could jeopardise the proper care of patients.

It is important to note that any resumption of activities will be accompanied by very strict barrier gestures and complemented by the mandatory wearing of a mask or any other device that covers the nose and mouth for interpersonal contact situations if the safety distance of 2 metres cannot be guaranteed.

 

Deconfinement strategy in phases:

Phase 1 – Reopening of construction sites (tentative date 20th April 2020).

The first phase thus covers the following activities:

  • Reopening of construction sites.
  • Educational aid and assistance activities (Services in child and family aid, Competence centres in special psycho-pedagogical care and measures to benefit children who are on the verge of dropping out of school).
  • Activities of gardeners and landscapers.
  • Businesses whose main activity is do-it-yourself.
  • Reopening of recycling centres.

This list will be completed on 4th May by the resumption of senior classes, as well as internships and practical work at BTS and university level.

Phase 2 – resumption of secondary education (tentative date 11th May 2020).

Phase 3 – resumption of fundamental education as well as the reopening of crèches and childcare facilities (tentative date 25th May 2020).

This will be followed, in later phases, by the resumption of commercial activities and the reopening of the HORECA sector. At this stage, however, it is premature to give a detailed assessment of the lifting of restrictions in this sector. A final decision will be taken in due course by the Government Council on the basis of an analysis of the situation.

Companies, businesses and administrations are generally encouraged to continue to promote teleworking throughout the transition period out of confinement.

Gatherings will remain prohibited until 31st July, except for funerals and civil weddings, which will be allowed for a maximum of 20 people and provided that an interpersonal distance of 2 metres is respected. The prohibitions laid down in Article 2 of the amended Grand Ducal Regulation of 18th March introducing a series of measures in the context of the fight against COVID-19 will be maintained.

The confinement measures currently in place for vulnerable persons and persons over 65 years of age will continue to be in force at least until the end of the first phase. The gradual lifting of the current restrictions also entails the need to develop, in consultation with the Ministry of Family Affairs, Integration and the Greater Region a strategy for the protection of vulnerable persons in care centres and persons over 65 years of age.

Workers belonging to the vulnerable category may consult their doctor to determine whether the severity of the illness prevents them from going to work. This assessment must be done on a case-by-case basis, taking into account the recommendations of the Health Directorate and the working environment of the person concerned.

 

Source: Gouvernement.lu

 

The Chamber of Commerce of Luxembourg informs that the distribution of protective masks to businesses, announced on Friday 17 April 2020, will take place on the following dates and according to the following procedures:

  • companies with 50 or more employees will receive the masks by direct distribution on Monday 20 or Tuesday 21 April. For these two days, companies are requested to organize a presence at their offices to receive the packages distributed by Post Luxembourg.
  • companies with fewer than 50 employees will receive a letter from the Joint Social Security Centre (CCSS) on Monday 20 or Tuesday 21 April informing them of the number of masks made available to them. The masks will be given to the companies after showing the original letter from the CCSS to a post office.

Each company will receive 5 protective masks per employee.

The provision of masks free of charge, organised jointly by the Government, the CCSS, Post Luxembourg and the Chamber of Commerce, will make it possible to equip some 60,000 companies in all sectors of activity (except the craft sector). Representing three quarters of the national workforce, these 60,000 companies will receive some 2 million masks.

Companies can contact the helpline (+352) 42 39 39 – 445 of the Chamber of Commerce or by e-mail at covid19@houseofentrepreneurship.lu for any questions. Further information on the aid measures can be found on the website www.cc.lu/covid19/.

 

Source: www.cc.lu

 

Update on support measures for employers

50% bank guarantee

A maximum amount of 250,000 euros from the Mutualité de Cautionnement.

 

Partial employment in case of force majeure

Advance payments based on the expected number of employees

Application through the MyGuichet.lu online tool

Applications by mail, email or fax will no longer be accepted

2 cases of application processing:

1) Mandatory closing: fast-track process or directly suitable

2) Open but with reduced activity: agreement of the Secretariat of the Committee on Trade Conditions of the Ministry of Economy

 

Fiscal measures

Requesting a delay on the payment and the cancellation of the VAT advance payments

Reimbursement of the credit balance < 10.000 EUR and administrative flexibility

Social security contributions: measures for temporary suspension of the CCSS

 

Aid scheme for companies in temporary financial difficulties

Capital subsidy in form of reimbursable advances of up to 500.000 euros

Application through the MyGuichet.lu online tool

Calculation basis: employee expenses and rental expenses

 

Emergency financial assistance for small businesses and self-employed workers

2 cases of application processing:

1) Mandatory closing

Immediate and non-refundable financial compensation of

Admission requirements and form

2) Open but with reduced activity

Immediate non-refundable financial subsidy of 2.500 euros

Admission requirements and form

 

In the context of the Covid-19 crisis, the Directorate General for the Middle Classes has established an emergency fund for very small enterprises (0-9 full time employees) and self-employed workers.

Thanks to this measure, enterprises with a maximum of 9 employees and self-employed workers who have a valid establishment permit issued before 18th March 2020 (with a minimum annual turnover of 15,000 euros and whose activity has been interrupted after the entry into force of the Grand Ducal regulation of 18th March 2020, which introduces a series of measures in the context of the fight against Covid-19) can submit an application for an immediate and non-refundable financial assistance of up to 5,000 euros.

The aim of this measure is to provide immediate financial support to the numerous very small businesses as well as to the self-employed workers who, although they constitute an essential part of our economic structure, are generally also the most vulnerable to contingencies such as the Covid-19 crisis.

In this regard, it is important to clarify that the granting of this aid is independent of the law proposal that will complement the existing aid instruments.

 

 

SOURCES: www.cc.lu , guichet.public.lu