Factsheet for case LU-2020-13/308 – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 25 March 2020 – 25 June 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Patrick Thill (LISER) and Eurofound|
|Case created||06 April 2020 (updated 06 January 2021)|
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 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
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
One person or microenterprises
|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:
no information available
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.