Factsheet for measure
LU-2020-14/1941
–
Updated
– measures in Luxembourg
Aid to compensate for temporary financial difficulties
Aides remboursables destinées à remédier aux difficultés financières temporaires liées au COVID-19
Background information
Subject to certain conditions, the Luxembourg State grants aid in the form of repayable advances to support businesses, including natural persons carrying out their activities as their main activity and in self-employment, experiencing temporary financial difficulties as a result of the COVID-19 crisis.
They are based on the amended law of 3 April 2020 on an aid scheme for businesses in temporary difficulty and amending the amended law of 19 December 2014 on 1) social measures for the benefit of independent professional artists and intermittent workers in the entertainment industry, and 2) the promotion of artistic creation.
Content of measure
This reimbursable financing can be used by:
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commercial, craft or industrial enterprises that hold a business license and are not active in an excluded sector (for example, fishery, agriculture). The employer must not have been convicted at least twice for illegal employment or employment of third-country nationals in an irregular situation (exclusion for three years from the date of the judgment) and
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by natural or legal persons established in Luxembourg and carrying out one of the following activities on a principal and independent basis. The aid will be granted if the business is active in an eligible sector, has temporary difficulties (for example, having a negative cumulative amount exciding the subscribed share capital or has been subjected to collective insolvency proceedings or has received rescue aid and has not reimbursed the loan). Eligible costs are staff costs or, if the business is independent, 2.5 times the social minimum wage and rental costs (€10,000 per month). The application must be submitted before 1 November 2021.
Updates
The following updates to this measure have been made after it came into effect.
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04 January 2022
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The period of validity of certain aid measures for companies experiencing temporary financial difficulties has been extended. This extension applies to:
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Investment aid to stimulate business investment in the area of COVID-19.
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Reimbursable aid to remedy temporary financial difficulties linked to COVID-19.
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Use of measure
Until 20 May 2021, 2,117 applications were eligible and processed with an total amount of €162,189,501.
Until 22 September 2021, 2,217 applications were eligible and processed with an total amount of €171,040,056.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
Social partners where not involved.
Views and reactions
Not available.
Sources
