Strengthening of support for companies affected by the Coronavirus COVID-19

The Luxembourg Government has decided to strengthen support for companies affected by the financial consequences associated with the COVID-19 coronavirus pandemic. Today, the Government approved amendments which extend the scope of the draft law, presented last week by the Minister for Small and Medium-Sized Enterprises, Minister for Tourism, Lex Delles and the Minister of the Economy, Franz Fayot, on the establishment of an aid scheme to large companies and liberal professions. In addition, the maximum amount of aid, which is a repayable advance in favour of companies in temporary financial difficulty, has been raised from 200,000 to 500,000 euros per single company (group).

In the interest of administrative simplification, the method calculating eligible costs has also been revised. The amended text states as eligible costs the firm's staff costs and rental charges, the latter being capped at EUR 10,000 per month per single firm. The text assimilates to personnel costs, income from the exercise of a professional activity carried out as a self-employed person on condition that the person is affiliated as such with the provisions of the Social security code, these costs being capped at an amount equivalent to 2.5 times the minimum social wage. Finally, it was specified that the repayment of the aid must not begin until 12 months at the earliest after the first payment of the reimbursable advance.

This draft law complements existing aid schemes such as short-time work.

Press release by the Ministry of the Economy