Factsheet for case DK-2020-12/599 – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Temporary, 19 March 2020 – 01 October 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound|
|Case created||14 April 2020 (updated 18 December 2020)|
|Related ERM support instrument|
Together with all parties of the Danish parliament, the government has passed a new guarantee scheme via Vækstfonden (the Danish state's investment fund).The new scheme has opened for small and medium-sized enterprises (SMEs) affected by the effects of COVID-19.
The guarantee scheme is part of the government's aid package for business. The government and all the parliamentary parties announced the total relief package on 19 March 2020.
With the scheme, the State will provide a guarantee of 70 per cent via Vækstfonden (the Danish state's investment fund) for new bank loans to companies which have suffered or expect to suffer a revenue loss of at least 30 per cent as a result of COVID-19. The scheme can support lending to small and medium-sized enterprises (less than 250 people and having an annual turnover of no more than DKK 50 million and/or a total annual balance sheet of a maximum of DKK 43 million).
The schemes are valid until 1 October 2020 and also apply to Faroese and Greenlandic companies. Companies who want to apply for a guarantee through Vækstfonden must contact their bank as the new loan is provided by their financial institution.
The guarantee has a maturity of up to 7 years, which is written down annually on a straight-line basis. The prize consists of a foundation commission of DKK 2,500 and an annual commission of 1 per cent. of the amount guaranteed.
The scheme can support SME's for up to DKK 25 billion.
The number of companies that are eligible for the scheme is unknown.
|Does not apply to workers||
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Information about partners possible involvement is not available.
Eurofound (2020), Guarantee scheme for small companies (under 250 employees), case DK-2020-12/599 (measures in Denmark), 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.