Qualifying businesses can benefit from new monthly capital grants of between €20,000 and €200,000 under a draft law in Luxembourg
New financial aid for costs not yet covered within the catering, tourism, events, cultural and entertainment sectors may be introduced if a new law is passed.
Bill 7703 provides for monthly capital grants of between €20,000 and €200,000, depending on the company size.
It would cover the costs of companies that were active in 2019, which suffered an economic loss of at least 40% (compared to the same time in 2019) from 1 November 2020 to 30 March 2021. Presented on Wednesday by middle classes minister Lex Delles (DP), the subsidy would be issued in the form of monthly capital grants.
Delles first presented the programme last month but the scheme required the approval of the European Commission before it could be signed into law. MPs must now analyse the bill and vote on it.
Companies which do not qualify for the new subsidy, should be able to apply for recovery assistance from the working ventures and solidarity fund, which will be extedned under bill 7704. This funding is issued to firms which lost at least 25% of their monthly turnover. The bill also expands the list of eligible companies to include in-store retail businesses, training centers, and fitness centres, among others. The grant is for a four-month period from December 2020 to March 2021.
A third aid will compensate companies for the increase in the minimum social wage scheduled for 1 January 2021. Bill 7718 sets out the terms and conditions for the capital grant to companies of up to €500. This aid can only be paid once to the sectors that are hardest hit by the health crisis.
The amount is calculated on the basis of the number of full-time employees, hired before 31 December 2020 and remunerated by an amount ranging from the minimum social wage to the qualified minimum social wage.