Danish Government Lands Agreement to Expand and Extend Economic Relief Packages
On October 27, the Danish government and a majority of the Danish Parliament agreed to expand and extend economic relief packages for the Danish business, culture and sports industries.
The second wave of the corona virus is sweeping across Danmark and the high infection rate has caused the government to enforce further restrictions in the hopes of avoiding a complete lockdown of Denmark similar to the one in the Spring. Following these sharpened restrictions, the government and a majority of the Parliament have agreed to expand and extent the current economic relief packages. This includes that small businesses and self-employers can close down temporarily with full compensation for their fixed expenditures and salary expenses if they are encompassed by the restrictions. However, should the restrictions be lifted before the relief packages terminate, the economic compensation will be terminated as well.
In order to seek economic compensation, a company or self-employer must be encompassed by the following restrictions:
- Prohibition on opening hours, alcohol restrictions etc.
- Ban on gatherings
- Closed border
- Ministry of Foreign Affairs’ travel guidelines
A number of compensation and guarantee schemes are extended to January 31, 2021. These includes:
- Economic compensation for fixed expenditures incl. suppliers for private events with min. 50 people or companies affected by limited opening hours
- Event organizers, self-employed, free-lancers and artists
- Guarantee for ‘Rejsegarantifonden’ for providers of travel packages
- Economic compensation for businesses that are forcibly closed
- Economic compensation for extraordinarily suffering cultural institutions
A number of compensation and guarantee schemes are expanded. These includes:
- Economic compensation for businesses that are affected by the sharpened restrictions of gatherings. This now includes suppliers to private events with at least 10 participants that are cancelled (suppliers of sound or lights as well as taxis)
- Businesses that sell alcohol after 22:00 can seek economic compensation for fixed expenditures if they experience a significant downturn in profits following the sharpened restrictions
- Economic compensation for forcibly closed businesses (night clubs, conference organizers) will now be able to seek compensation for salary expenses if employees are sent home due to a temporary standstill in activities. In medio November, the government will investigate if more business-related activities should be included as well
- Economic compensation for suppliers to mink farms where the herd has been destroyed
- The loan scheme for VAT loans is reopened for small and medium-sized businesses that did not apply for a loan in the Spring. In addition, the payment deadline is postponed until November 1, 2021.
- The guarantee scheme from Vækstfonden and the Export Credit Fund for SMVs is expanded, making it easier for the companies to take a loan at the bank.
- DKK 500 mio. are allocated to support a match facilitation scheme, where entrepreneurs support newly-established businesses
- DKK 450 mio. are allocated to the cultural and associational life. In addition, DKK 50 mio. are allocated to a new kickstart team that will provide recommendations to the Danish government on how cultural, associational and sports life should develop during covid-19.