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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case BE-2020-13/422 – measures in Belgium

Wallonia: Financial support for SMEs

Wallonië: financiële ondersteuning via het noodfonds

Country Belgium , applies regionally

    • – BE3 RÉGION WALLONNE
Time period Open ended, started on 25 March 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Dries Van Herreweghe (Katholieke Universiteit Leuven) and Eurofound
Case created 09 April 2020 (updated 07 May 2020)

Background information

The Walloon regional government provides financial support for small companies (less than 50 employees) in certain sectors that are facing cashflow problems due to the Corona virus. The measure provides a direct financial contribution to companies that are forced to close due to the Corona virus or the associated measures. The financial support is also provided to companies that experience a significant decrease in revenue due to the Corona virus or related measures.

Content of measure

The region has set up an emergency fund of approximately €233 million to aid the sectors and companies that have been directly impacted by the Corona virus and/or associated measures.

Eligible companies that are forced to close due to the crisis can avail of a single tax-free payment of €5,000 to support them.

In addition, a lower amount, €2,500, is available for companies that notice a significant reduction in revenue because of the situation.

In addition there are also guarantees available through the regional government and loans of up to €200,000.

The following sectors are eligible : Washing and polishing of motor vehicles Retail Other passenger land transport Accommodation Eating and drinking establishments Other activities of specialised designers Rental and leasing of tents Rental and leasing of crockery, glassware, kitchen utensils, tableware, electric household appliances and other household utensils Travel agencies, tour operators, reservation service and related activities Organisation of congresses and fairs Driving schools Specialised image, lighting and sound techniques Other personal services (laundry, hairdresser, beauty care, ...) Fairground attractions Tourist attractions

Use of measure

Approximately 48,890 small businesses are eligible (small and in the designated sector) for the single payment of €5,000 due to closure.

In addition approximately 6015 companies are able to apply for the lower compensation of €2,500 because of a significant reduction activity/revenue.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
SMEs
Does not apply to citizens

Actors and funding

Actors Funding
Local / regional government
Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

N/A

Views and reactions

It is to be expected that social partners were at least informed of the measures, their concrete involvement is unclear.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G47 Retail trade, except of motor vehicles and motorcycles
      H - Transportation And Storage H49 Land transport and transport via pipelines
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R93 Sports activities and amusement and recreation activities
      S - Other Service Activities S96 Other personal service activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2020), Wallonia: Financial support for SMEs, case BE-2020-13/422 (measures in Belgium), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.