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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 LU-2020-13/308 – measures in Luxembourg

Emergency fund for very small businesses and self-employed persons

Notfallfong fir ganz kleng Betrieber an Indépendanten

Country Luxembourg , applies nationwide
Time period Temporary, 25 March 2020 – 25 June 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Patrick Thill (LISER) and Eurofound
Case created 06 April 2020 (updated 20 July 2021)

Background information

The aim of the measure is to provide an immediate financial support to the high number of very small businesses and self-employed persons regarding their importance for the Luxembourgish economy and who are a very vulnerable to unforeseen crises.

The legal backgrounds are:

  • The declaration of a state of crisis by the law of 24 March 2020 extending the state of emergency (Loi du 24 mars 2020 portant prorogation de l’état de crise déclaré par le règlement grand-ducal du 18 mars 2020 portant introduction d’une série de mesures dans le cadre de la lutte contre le COVID-19. Mémorial A 178 du 24 mars 2020).
  • The implementation of the measure by the Grand-Ducal regulation of 25 March 2020 on the establishment of a certified emergency allowance in favour of certain micro-enterprises in the context of the COVIDpandemic-19 (Règlement grand-ducal du 25 mars 2020 ayant pour objet la mise en place d’une indemnité d’urgence certifiée en faveur de certaines micro-entreprises dans le cadre de la pandémie COVID-19). Mémorial A 187 du 25 mars 2020.

Content of measure

The General Directorate for Small and Medium-Sized Enterprises (GDSMSE) set up an emergency found for very small business and self-employed persons. This emergency fund provides immediate, non-repayable financial assistance in the form of a grant of €5,000.

Applicants must meet the following criteria simultaneously:

  • Size criteria: enterprises or self-employed persons both with a valid business permit issued by the GDSMSE and at maximum 9 fulltime employees.
  • Prohibition of closure criterion: both types of businesses must have interrupted their activity following the entry into force of the Grand-Ducal regulation of 18 March 2020 introducing a series of measures to combat COVID-19.
  • Turnover criterion: Applicant companies must have an annual turnover of at least €15,000.

Also, if the applicant own’s more than one business, he only can apply for aid for one business.

Use of measure

Until 19 October 2020, 6,204 eligible applications were processed for a non-refundable grant of €5,000. The total amount of support granted to micro-enterprises was €31,002,000.

The government updated the available data on the use of this measure: until 20 May 2021- 6,220 enterprises received a total of €31,100,000.

Target groups

Workers Businesses Citizens
Self-employed
Solo-self-employed
SMEs
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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:

  • No involvement
  • Main level of involvement: Unknown

Involvement

No involvement.

Views and reactions

No information available.

Sources

Citation

Eurofound (2020), Emergency fund for very small businesses and self-employed persons, case LU-2020-13/308 (measures in Luxembourg), 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.