Paperjam.lu

€265m in business aid has been paid out (Photo: Shutterstock) 

“From the moment the request for help is made and complete, there is a two-week delay to receive the money in your account,” minister for small and medium-sized enterprises Lex Delles told Delano's sister publication Paperjam.

But complaints from businesses are numerous. Over the weekend, Luxembourg restaurant owners staged a protest march in the capital to vent their anger at prolonged business closures and a lack of support.

Out of 2,300 hospitality industry players, only 1,800 have filed for financial support, Delles said. “We see companies who don’t make a request.”

On social media, entrepreneurs however are voicing their anger over red tape. Produce supplier Letzgrow on Facebook, for example, said its application had been refused numerous times over missing documentation, such as pictures of their shop which were not initially required.

“Our government promises of aid ended up being an endless administrative game that resulted in zero help so far,” the business said.

Delles in a statement published on 19 January said that the ministry was processing “each case quickly and carefully,” inviting companies and self-employed people to apply for the support available.

“However, I would like to point out that it goes without saying that only complete requests can be dealt with in a quick and efficient time. It is therefore important to fill out requests carefully and submit them as soon as possible,” Delles said.

What has been paid out

The same press release does not reveal how many requests have so far been denied but listed the different types of financial aid paid out.

A first emergency grant of €5,000 was given to 6,215 companies who lost business because of lockdown, amounting to €31,075,000. A second round of €5,000 grants for small and micro businesses was awarded to 7,346 companies after the government expanded eligibility criteria, resulting in a total of €36,730,500.

In April last year, the government added a support scheme for companies with between 10 and 20 employees, with 672 businesses receiving €12,500 in non-repayable financial aid, a total of €8.4m. And €13,344,500 was transferred to self-employed workers between April and May 2020.

In June 2020, the government launched the recovery and solidarity fund, to support businesses in tourism, events, hospitality, culture and entertainment paying €41.8m to 5,140 businesses. Added to this, €9,075,428 went to retailers who suffered losses because of the pandemic.

A scheme to contribute to costs not covered introduced in December 2020 has so far paid out €1,281,610 to 106 companies. In addition to grants, the government has paid €136,004,494 in repayable financial aid.

A full overview of the aid available to companies, eligibility criteria and how to apply is available on guichet.lu.