regjeringen.no (10.11.2020) The government proposes a new compensation scheme of up to NOK 5 billion, for companies with a large drop in turnover as a result of the corona pandemic.
A new compensation scheme of up to NOK 5 billion, for companies with a large drop in turnover as a result of the corona pandemic, is available as of September 1st, and it will be applicable until February 28th 2021. The aid is calculated on the basis of the company's fixed, unavoidable costs, multiplied by a decrease in turnover as a percentage and multiplied by an adjustment factor. When the fall in turnover is included in the calculation model, support will increase if stricter infection control measures lead to companies having a higher drop turnover.
Introduces new compensation scheme
Press release | Date: 10.11.2020
The government proposes a new compensation scheme of up to NOK 5 billion, for companies with a large drop in turnover as a result of the corona pandemic.
The outbreak of the corona pandemic and the authorities' infection control measures continue to create challenges for large parts of Norwegian business and industry. Therefore, the government proposes to establish a broad, temporary compensation scheme for companies with a large drop in turnover as a result of the crisis.
- The development in the infection situation indicates that there is a need for a more comprehensive support scheme than was previously assumed. That is why we are coming up with new measures. The goal is still to help otherwise profitable and adaptable companies through the corona crisis, says Minister of Trade and Industry Iselin Nybø.
The Government will set aside NOK 5 billion for the scheme, in the period from 1 September 2020 to 28 February 2021. The budget proposal is an estimate allocation, which follows from regulations laid down by the Storting.
Covers more than before
The scheme applies to the same industries as the previous compensation scheme , and is open to enterprises with more than a 30 per cent drop in turnover as a result of the corona pandemic.
The Brønnøysund registers will administer the new scheme, and work is underway to set up an application portal that will be open from January 2021.
To reflect a more challenging situation now than envisaged before the summer, the government proposes to cover up to 60 per cent of the companies' fixed, unavoidable costs for September and October, which is an increase in the support level from 50 per cent in August. As a result of the tightening of the authorities' infection control measures in early November, it is proposed to raise the level to 70 per cent from November.
Facts about the scheme
- The new compensation scheme for the business community is based on the previous scheme managed by the Tax Administration.
- The scheme applies to the period from 1 September 2020 to 28 February 2021, and support will be calculated for two months at a time. Applications for the first two periods, ie September / October and November / December, must be sent together in January 2021. Applications for January and February must be sent in March 2021.
- The aid is calculated on the basis of the company's fixed, unavoidable costs, multiplied by a decrease in turnover as a percentage and multiplied by an adjustment factor. When the fall in turnover is included in the calculation model, support will increase if stricter infection control measures lead to companies having a higher fall in turnover.
- When the adjustment factor is 0.7, this means that the scheme can cover up to 70 per cent of the enterprises' fixed, unavoidable costs, depending on the size of the fall in turnover. A company with a 50 per cent drop in turnover will have 35 per cent of the costs covered, while a company with a 100 per cent drop in turnover will have 70 per cent of the costs covered.