POLITICS & INSTITUTIONS - ECONOMY

Parliament passes small business aid bill



Paperjam.lu

Franz Fayot, the economy minister, is seen at the Chamber of Deputies during a debate which ended with passage of his SME virus recovery bill, 31 March 2020. Photo credit: Chambre des Députés 

€300m will be available as part of the government’s €8.8bn plan to keep Luxembourg’s economy afloat.

Fernand Etgen, the speaker of parliament (DP), said during the session on Tuesday:

“This crisis calls for rapidity, to slow the spread of the virus and safeguard the operational capacity of the health sector, but also to put in place measures that will help our businesses survive this crisis.”

Bill 7532 allows SMEs facing a liquidity crunch to borrow up to €500,000. Reimbursement is meant to begin after 12 months, but actual payment plans will be devised on a “case by case basis”.

The Chamber of Deputies passed a motion by Marc Spautz (CSV) that would allow the government to increase loan amounts to €800,000. Franz Fayot, the economy minister (LSAP), subsequently said startups would qualify for the higher figure for research and development expenses. He tweeted after the parliamentary session:

“I decided to adjust the financial aid for young innovative companies by providing up to €800,000 to co-finance at least 70% (before the crisis it were up to 50%) of all costs borne by a startup for the duration of its project”.

Information for SMEs is available on the government’s Guichet website.