Factsheet for case FI-2020-28/1224 – measures in Finland
|Country||Finland , applies nationwide|
|Time period||Temporary, 07 July 2020 – 31 August 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Amanda Kinnunen (Oxford Research) and Eurofound|
|Case created||02 October 2020 (updated 07 October 2020)|
In May 2020, the Government decided to introduce a new form of financial support for companies that had experienced a significant decrease in turnover due to the COVID-19 pandemic. This form of support replaced the two forms of business development aid that companies could previously get either from the public provider for innovation funding, Business Finland, or from the Centres for Economic Development, Transport and the Environment (ELY Centres). Unlike funding from Business Finland and ELY Centres that could be used to develop companies and find ways to adapt to the new market situation, business cost support is a form of funding that is intended to cover fixed costs that are difficult to adjust.
The legal basis for this support is Laki yritysten määräaikaisesta kustannustuesta (508/2020) (unofficial translation: Act on fixed-term business cost support). The application process is administrated by the State Treasury (in Finnish 'Valtionkonttori').
The application period was open between 7 July 2020 and 31 August 2020. The support period is April 2020.
This form of support is available for businesses whose turnover has decreased at least by 30% as a result of the COVID-19 pandemic and that have costs that are difficult to adjust.
This form of support is available for companies whose total turnover for the reference period (March 2019 to June 2019) is at least €20,000. It cannot be granted if the amount of support to be paid is less than €2,000.
Eligibility is tied to sectors that have experienced at least 10% decrease in the overall turnover. Exceptions can be made on serious grounds.
The minimum amount for the support is €2,000 per company. The maximum amount is €500,000. The amount of support is based on the company's turnover, the level of fixed costs as well as payroll costs. The amount is dependent on the company's turnover either in April 2020 or the average turnover of April 2020 and May 2020.
Companies that have applied or received other type of financing may apply for business cost support but this may affect the amount.
The total budget for this measure is €300 million.
As of 31 August 2020 (the day the application closed), approximately 12,800 businesses had applied for this support. The number companies that had been granted this support was approximately 8,500.
The most significant sector ( in terms of number of companies applying) was gambling and betting services, followed by accomodation services and travel agency, tour operator and other reservation service and related activities.
The amount of support that had been paid out to businesses was €107 million.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
The Confederation of Finnish Industries (in Finnish 'Elinkeinoelämän keskusliitto') argues that while there are many positive aspects to the business cost support, there are also some significant flaws.The key points of concern are limiting the maximum amount a company can receive, the low overall budget of the measure and limiting this measure to certain sectors.
Eurofound (2020), Business cost support , case FI-2020-28/1224 (measures in Finland), 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.