Finnish Government proposes the new compensation for companies
The Government proposes that compensation be paid to companies whose premises must be kept closed due to the coronavirus situation. The new form of compensation would apply to companies with up to 49 employees. It is also planned to prepare separate support for larger companies.
This compensation would apply to those restaurants and other food and beverage service businesses that are closed from 9 to 28 March 2021. Nevertheless, meals may be sold for takeaway and in this case such sales would be taken into account when calculating the amount of compensation.
Compensation could also be paid to companies that the municipality or the Regional State Administrative Agency (in Finnish, aluehallintovirasto) have the power to close under the Communicable Diseases Act. Such companies would be, for example, sports facilities, gyms, public saunas, swimming pools, spas and indoor playgrounds.
The compensation is aimed for the companies that are closed for more than fifteen (15) days. If a company has not closed completely (but just restricted the number of customers), it would not be entitled to compensation. Such companies can apply for business cost support.
The amount of compensation would be based on the company's expenses in February 2021 and on how much of the business is affected by the closure. Payroll costs would be reimbursed fully and, for example, 70% other costs, such as rent. Previously granted support would be taken into account and the maximum amount of aid should not exceed EUR 1.8 million.
The total amount of compensation that will be paid to companies for closure is estimated at EUR 70 million.
The government proposal, that supplements the proposal on the third application round for business cost support, is currently under consideration by Parliament. The Act is due to enter into force on 12 April 2020. Companies could apply for the compensation at the State Treasury. Applications for the compensation could be accepted at the beginning of May.