The restructuring support for companies in crisis due to the corona crisis will be extended through March and April. It will cost approximately SEK 5 billion and is the result of completed negotiations between the government and the collaborating parties.
If the pandemic has reduced turnover by at least 30 percent, the existing support allows smaller companies (fewer than 50 employees) to have 90 percent of their fixed costs covered. For larger companies, the rate is 70 percent.
”"The rules will be the same during this extension," says Rickard Nordin, economic policy spokesperson for the Center Party, to TT.
The state's cost of the support was estimated before the new announcement at around 16 billion kronor, according to the government.
The decision to extend restructuring support for limited liability companies, partnerships and sole proprietors will be made in an extra amending budget in the Riksdag at the beginning of March.
”"It is extremely important to be able to save jobs, since several of the restrictions that the government has introduced, for example in the transport sector, for long-distance buses and long-distance trains, apply until May," says Mats Persson, economic policy spokesperson for the Liberals, to TT.
Other entrepreneurs, such as restaurateurs, taxi owners and hairdressers, are also under great pressure right now, he points out:
”"We must save companies in this situation when some industries are having a brutally tough time and are fighting every day to survive."”
The country may be facing a third wave of infections and the government has admitted that stricter restrictions may be necessary, such as completely closing stores and malls.
”Then there is another support, the shutdown support, in a separate pot that covers all the companies' fixed costs,” points out Rickard Nordin.
”"Should that pot be exceeded, we will contribute more money."”
He is dissatisfied with the pace of payments to companies that have applied for restructuring support.
”"It takes far too long to get the money out, especially from the Swedish Agency for Economic and Regional Development, but also from the Swedish Tax Agency. Now the money has to be out and if the authorities need more resources to speed this up, then we are prepared to extend it further if necessary," says Rickard Nordin.
Entrepreneurs, mainly in the restaurant industry, have protested loudly that the money has been delayed. But last week the EU approved the temporary support rules and the handling is expected to be quicker.
The government has repeatedly extended the transition support, which, according to EU regulations, constitutes state aid.
