Background information

The aim of the measure is to provide financial support to businesses that have suspended their operations in accordance with the decrees of the Ministry of Health against the spread of COVID-19 in the community. The financial support provides cover for running or operational costs of businesses such as rentals of business units, debts instalments or other business operational costs. The scheme is approved by the Cabinet in April 2021 and covers the closing periods of March to May 2021.

Content of measure

Beneficiaries of the measure are businesses and self-employed persons that have participated in the special supporting schemes of the government CY-2020-12/330 & CY-2020-11/327 , CY-2020-24/895 during the reference period (1-15 March 2021) performing one of the following economic activities:

• catering industry (restaurants, cafes, bars, pubs and similar activities)
• dance schools and gyms
• conference and trade fairs organisers
• recreational and thematic parks and playgrounds
• performing arts and their supporting activities
• other entertainment and leisure activities
• theatres and cinemas
• photographers
• tax drivers

The amount of the lump sum grants is calculated in accordance of the number of employees of the beneficiaries as follows:

• self-employed without employees €700
• employers with 1 employee €1,200
• employers with 2 employees €2,000
• employers with 3-5 employees €3,500
• employers with 6-9 employees €5,000
• employers with 10-20 employees €7,500
• employers with 21-50 employees €10,000
• employers with 51+ employees €15,000

In addition, self-employed persons that participated in the above governmental schemes at least three periods in the past with an annual turnover below €15,600 are granted with a lump sum of €1,000.

For April and May 2021, the criteria for participation are the same as above plus the list of beneficiaries includes businesses and self-employed persons performing the following four economic activities:

• retail trade businesses
• hairdressing salons, beauty centres and tattoo centres
• private tutoring centres
• gambling and betting businesses.

Similarly, the amount of the lump sum grants is according to the number of employees of the beneficiaries as follows:

• self-employed without employees €900
• employers with 1 employee €1,700
• employers with 2 employees €2,500
• employers with 3-5 employees €4,000
• employers with 6-9 employees €6,000
• employers with 10-20 employees €8,500
• employers with 21-50 employees €10,000
• employers with 51+ employees €15,000

Use of measure

The number of beneficiaries of the measure is currently unavailable as the measure is still running.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	European Funds National funds National Recovery and Resilience Facility

Social partners

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

	Trade unions	Employers' organisations
Role	Informed	Consulted
Form	Not applicable	Direct consultation outside a formal body

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

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

The sponsorship scheme emerged after the reactions of social partners – trade unions, employers’ organization, SMEs – and political parties at a national level to earlier measures of the government directed to businesses, which were considered inadequate. The covering of operational costs of businesses was a demand of social partners since the first wave of the pandemic in 2020, which influenced a public debate among them and the government. Social partners at the peak level participated in the designing phase of the scheme thought the implementation and monitoring is regulated by the Ministry of Finance.

Views and reactions

Social partners appeared satisfied upon the announcement of the scheme by the Ministry of Finance. Some reactions have been also observed mainly by the leading opposition party suggesting that the rental of businesses units, particularly for SMEs that have negatively affected by the pandemic, which represents a large percentage of the operational costs of businesses should be subsidised separately and directly by the government.

Sources

• 09 July 2021: Εφάπαξ χορηγία για τις επιχειρήσεις που ανέστειλαν τη λειτουργία τους (www.pio.gov.cy)
• 14 July 2021: Κρατικές εγγυήσεις και βοήθεια με τα ενοίκια για ΜμΕ (www.alphanews.live)
• 14 July 2021: Στη βουλή το θέμα των ενοικίων για ΜμΕ (dialogos.com.cy)