Business support: loans and grants are promised first, but new instruments are being developed

Additions throughout the text.

The economy and innovation minister said at a press conference on Monday that the main objective is to coordinate planned support measures – loans and subsidies – with the European Commission (EC).

“Decisions on 150 million. Subsidies of EUR and 30 million. Loans in EUR will be accepted as soon as possible. To put these measures in place, we have to coordinate them with the EC, which has not been done. I came to this press conference After a phone conversation with EC Vice President Margrethe Vestager, I asked the highest political level to help coordinate business support measures as soon as possible so that we don’t delay, said A. Armonaitė.

New measures are also being considered, including rent compensation.

The minister pointed out that 180 million are expected. The amount of aid in euros for businesses is not final, it is planned that around 230 million euros will be allocated for grants and loans, as well as for new aid measures, which will be provided in the near future. EUR.

“We would like to be there as soon as possible, but we find the situation as we find it, we have to coordinate with the European Commission.” Now our main job is this, we hope that subordinate ministries and institutions will give priority to this and that companies can submit applications as soon as possible. I hope that we coordinate before the holidays, as soon as possible and then immediately we will be able to announce the possibility of companies requesting support ”, asked A. Armonaitė when the support could reach the company.

Vertical support measures

According to A. Armonaitė, other measures are being coordinated with Monika Navickienė, Minister of Social Security and Labor.

“They will run stable and we will save jobs,” said A. Armonaitė.

According to her, the government understands the possible economic consequences of its decision on tougher restrictions and is therefore developing a wide arsenal of aid measures for companies.

“We also understand that we must be prepared not only to help the business now, but also to come out of quarantine,” the minister said.

According to her, in addition to horizontal support measures, such as subsidies to companies, whose turnover was reduced by 30% or more, vertical measures will be introduced for the sectors of the economy particularly affected.

“But because of them, we still have to work separately and coordinate with the EC. Now the most important thing is to launch what was promised, that’s why companies and people have expectations,” said A. Armonaitė.

Rental compensation is not canceled

Journalists are asked about popular means of compensation for the rental of premises in the spring, A. Armonaitė noted that this possibility is being considered, but there is still no solution.

“It just came to our attention then. I have heard several stories in which companies have been helped, especially small ones. But there are some nuances, there are other stories that must be taken into account,” he said.

When asked if the state could provide assistance to hotels and other accommodation establishments by requesting them for people who need self-isolation, A. Armonaitė said that this is the competence of the Minister of Health.

Soft loans and subsidies

VŽ recalls that the graduated government had approved the support criteria and the subsidy measure for small and medium-sized companies, according to the 2019 personal income tax (PIT) paid.

Companies whose turnover has decreased by 30% or more due to COVID-19 could receive a free one-time grant ranging from € 500,000 to € 800,000.

However, the grant money could reach companies from 2021. They could submit applications after the new ones, as this measure still requires the scheme to be agreed with the European Commission.

The previous government had confirmed that the subsidy would be available to micro, small and medium-sized enterprises, whose turnover in March-October of this year fell by 30% or more compared to the same period in 2019. period.

Whether a company complies with the business volume reduction indicators will be determined on the basis of the value added tax (VAT) returns submitted to the State Tax Inspection (STI). For companies that are not registered for VAT purposes, this information will be required in the application.

For a new business, March 1. – October 31, income will be subject to another activity restriction criterion. If your activities are included in the list of activities restricted by quarantine, you can receive a grant of 500 EUR on request.

The amount of the subsidy will be 25% of the amount of GPM paid or credited to the company’s employees last year. Applications will be submitted through the STI electronic system, 150 million must be assigned to them. EUR.

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