Finance

Affected entrepreneurs receive more corona support due to hard lockdown

The extension applies to the wage costs (NOW) and fixed costs (TVL) of companies, as well as to the repayment of loans from self-employed entrepreneurs (Tozo), who are granted a postponement for this.

Wider compensation

For example, the maximum allowance for wage costs for employers will be increased from 80 to 90 percent. At the same time, the threshold for receiving compensation for fixed costs will be lowered from 30 to 20 percent.

“With this, the cabinet also meets companies that are affected by this acute lockdown in these last weeks of the quarter,” the caretaker cabinet writes in the announcement.

There will not be a stock allowance for the catering industry and retail trade, which, for example, suddenly have to throw away food or donate to the Food Bank. The caretaker cabinet considers such a scheme difficult to implement and would take longer.

5.6 million euros and 10 million euros respectively will be made available for closed companies in the cultural sector and zoos.

Less NOW seems utopia

At the end of October, it was announced that the cabinet will once again open the treasury for extra support to the business community, including extras for the badly hit catering and event industry.

The main support measure, the NOW scheme, would be cut back from January 2021. It is questionable whether that plan will continue in view of the uncertain situation regarding the omikron variant of the corona virus, and the fact that expenditure on corona support is skyrocketing.

In the meantime, the cabinet is also working on compensation for parents who now incur costs for the out-of-school care (BSO) for their children, while it is closed due to the lockdown until at least 9 January.

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