Support available to sole entrepreneurs from municipalities for coronavirus-related reasons
The Ministry of Economic Affairs and Employment and the Association of Finnish Local and Regional Authorities have prepared a financing model for sole entrepreneurs to help them cope in the conditions caused by the coronavirus. Sole entrepreneurs will be able to apply for financing from municipalities to address difficulties caused by the coronavirus. Financing will be made available as soon as details regarding the model and its implementation have been resolved.
“Sole entrepreneurs are important for Finnish society. I am extremely pleased that a solution has been identified to support them. The objective of the financial support to sole entrepreneurs is to make sure business activities can continue after the interruption caused by the coronavirus. Municipalities are familiar with the situation of their local sole entrepreneurs, and have a good contact network with the business service providers,” says Minister of Economic Affairs Mika Lintilä.
The support criteria are the same in all municipalities. The state will provide this support in full by allocating EUR 100 million reserved for the ELY Centres’ business subsidy granting authorisations in the supplementary budget for 2020.
Businesses that were profitable before the coronavirus-induced interruption will be eligible for support. The support would consist of a fixed sum, which could be used for any business expenses, particularly fixed costs such as rents. The support scheme would run for a fixed term and be in effect for 6 months.
“Helping profitable businesses get over this difficult period not only supports entrepreneurs, but helps us to maintain the vitality of municipalities. Municipal business services make support available quickly and efficiently to those who need it,” says Minna Karhunen, CEO of the Association of Finnish Local and Regional Authorities.
Entrepreneurs may be entitled to this support as well as extended unemployment security. The municipality granting the financing will ensure that the support is not excessive given the scope of the business activities in question.
Municipalities have a sufficient mandate to provide the financing and no new legislation is required to implement the model. Municipalities will make all the necessary arrangements to perform this duty with the Ministry of Economic Affairs and Employment. Municipalities can also perform the duties jointly.
Inquiries:
Jenny Hasu, Special Adviser to the Minister of Economic Affairs, Ministry of Economic Affairs and Employment, tel. +358 29 504 7213
Ilona Lundström, Director General, Ministry of Economic Affairs and Employment, tel. +358 29 504 7186
Marja-Riitta Pihlman, Director-General, Ministry of Economic Affairs and Employment, tel. +358 29 504 920Minna Karhunen, Chief Executive Officer, Association of Finnish Local and Regional Authorities, tel. +358 9 771 2000
Timo Reina, Deputy Managing Director, Association of Finnish Local and Regional Authorities, tel. +358 9 771 2700
Jarkko Huovinen, Director of the Regions and Urban Development, Association of Finnish Local and Regional Authorities, tel. +358 9 771 2550
Juha Myllymäki, Legal Director, Association of Finnish Local and Regional Authorities, tel. +358 9 771 2193