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Factsheet for measure SE-2020-46/1409 Updated – measures in Sweden

Turnover-based support for sole traders

Omsättningsstöd till enskilda näringsidkare Omsättningsstöd till enskilda näringsidkare

Country Sweden , applies nationwide
Time period Temporary, 09 November 2020 – 31 December 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Amanda Kinnunen (Oxford Research)
Measure added 06 November 2020 (updated 07 February 2022)

Background information

Many sole traders have been negatively affected by the COVID-19 pandemic and the restrictions followed by the outbreak. Some of them have not been eligible for the forms of financial support implemented earlier by the Swedish Government. For instance, some of them have not been able to benefit from the state support for short-time work.

To support sole traders during the COVID-19 crisis, the Government has introduced turnover support, a new form of direct subsidy that specifically targets sole traders.

Turnover support is implemented through Förordning om omsättningsstöd (2020:893) till enskilda näringsidkare (unofficial translation: Decree on turnover support for sole traders 2020:893).

Content of measure

Turnover support is available for sole traders whose turnover in March and April 2020 was less than 70% of their turnover in the same time the year before. In order to get support for May 2020, turnover must have been less than 60% in comparison to May 2019. For June and July 2020, this figure is 50%.

The decreased turnover must have been caused by the COVID-19.

Turnover support covers up to 75% of the loss of turnover. Eligible sole traders can receive up to 120,000 SEK (€12,000) in support. There is no information available regarding the total budget of this measure.

The application period is between 9 November 2020 and 31 January 2021. Turnover support is administrated by the County Administrative Boards and paid out by The Swedish National Board of Housing, Building and Planning.

Updates

The following updates to this measure have been made after it came into effect.

11 January 2022

Due to a new wave of COVID-19, the Government plans to reopen turnover-based support for sole traders and trading companies that have at least one physical person as owner.

The support period is December 2021 but it is likely that the measure will be extended even further.

18 March 2021

Due to the continued spread of the virus and the measures taken to reduce the spread of infection, the sales support to sole traders and the support to trading companies will be extended to include March and April 2021. The government further proposes the support be prolonged to also include May and June 2021, but the decision is pending.

22 December 2020

In order to support companies affected by the COVID-19 pandemic and in particular the further restrictions set by the Government in order to curb the spread of the virus, the turnover-based support for sole traders has been extended to cover January and February 2021. Sole traders whose turnover has decreased by at least 30% in comparison to 2019 (and who meet the other criteria) are eligible.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Other businesses
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 Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

No information available.

Views and reactions

The Swedish Federation of Business Owners (Företagarna) has criticised the lengthy planning process of the turnover support. They argue that many sole traders are have waited for this form of support to be implemented since the beginning of the COVID-19 crisis.

Sources

  • 05 November 2020: Turnovers support for sole traders (Omsättningsstöd till enskilda näringsidkare införs) (www.regeringen.se)
  • 05 November 2020: Turnover support for sole traders soon available (Enskilda näringsidkare: datum spikat för stödansökan) (www.foretagarna.se)
  • 21 December 2020: Omsättningsstödet till enskilda näringsidkare och omsättningsstödet till handelsbolag förlängs för perioden januari och februari 2021 (www.regeringen.se)
  • 24 March 2021: Turnover support to be prolonged to include May and June (www.regeringen.se)
  • 11 January 2022: Regeringen förlänger krisstöd till företag [Government extends crisis support for companies] (www.regeringen.se)

Citation

Eurofound (2020), Turnover-based support for sole traders, measure SE-2020-46/1409 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2020-46_1409.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.