Factsheet for case
AT-2020-16/474
β
Updated
β measures in Austria
Company subsidy for fixed costs including entrepreneur's wage
Fixkostenzuschuss
Background information
For companies affected by business closures, a β¬15 billion COVID-19 crisis fund ('Nothilfefonds') is available, which consists of several measures (see other cases in Austria on bank guarantees, state support for tourism), among them the subsidy for fixed costs. To cover fixed costs, non-repayable subsidies are granted to companies that suffer substantial sales losses of at least 40% due to the consequences of the corona crisis.
Eligible are those companies that fully meet the following conditions:
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Companies that have their management or a permanent establishment in Austria;
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Companies that have to bear fixed costs from their operating activities in Austria;
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Companies that were healthy before the Corona crisis;
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Companies which, in the course of the Corona crisis, have suffered a loss of turnover of at least 40%;
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Enterprises which take all reasonable measures to achieve sales which help to reduce fixed costs and maintain jobs in Austria.
Content of measure
The following fixed costs of the company are eligible:
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Rent of business premises
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Insurance premiums
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Interest expenses
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Licence costs
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Payments for electricity, gas and telecommunications
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Other contractual payment obligations
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Entrepreneur's salary up to a maximum of β¬2,000 per month (analogous to the regulations from the hardship fund)
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Loss of value of perishable/seasonal goods, provided that these lose at least 50% of their value during the corona measures
The fixed cost subsidy is staggered and depends on the company's loss of sales:
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loss of 40 to 60%: 25% compensation of fixed costs
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loss of 60 to 80%: 50% compensation of fixed costs
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loss of 80 to 100%: 75% compensation of fixed costs
The fixed-cost subsidy does not have to be reimbursed - provided that all the provisions of the guidelines are complied with. The subsidy is limited to a maximum of β¬90 million per company.
Updates
The following updates to this measure have been made after it came into effect.
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13 May 2020
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On May 13, the new Corona Aid Fund guidelines for fixed-cost grants were published in the form of a regulation by the Austrian Ministry of Finance. Further improvements were announced on May 21, 2020. The novelties include:
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Payment of an advance (first tranche) of up to 50%
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Fixed-cost subsidy is granted from an amount of β¬500 upwards
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Payments from the Hardship Fund are no longer counted.
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Assertion of reasonable tax consultant, auditor and accountant costs up to β¬500 for applications with a grant amount below β¬12,000
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Companies that were 'companies in difficulty' under EU state aid law on December 31, 2019 can apply for a grant of up to β¬200,000 under the de minimis state aid scheme, provided that no insolvency proceedings have been opened or the conditions for this have been met
The observation period stated in the 1st application cannot be changed afterwards (2nd and 3rd installment).
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Use of measure
Measure has not yet been implemented at the time of writing (start: 15 April 2020).
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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Consulted
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Form
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Not applicable
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Only employers' organisations
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Main level of involvement: Peak or cross-sectoral level
Involvement
Employer organisation was consulted and is involved in the implementation.
Views and reactions
The Austrian Chamber of Economics section 'Young economy' highlighted that the reduction of the minimum threshold of the grant from β¬2,000 to β¬500, together with the fact that it can be obtained in addition to any payments from the hardship fund, are an important improvement in supporting solo-self-employed, micro and small enterprises.
Sources
