Turnover-based support to sole traders
In light of the severe financial impact the COVID-19 pandemic has had on many sole traders, the Government is now proposing SEK 3.5 billion to support these companies in 2020. The Budget Bill for 2021 proposes that an additional SEK 1.5 billion be set aside for 2021. It is proposed that the Government’s proposals, which build on an agreement between the government parties, the Centre Party and the Liberal Party, enter into force as soon as possible.
Many sole traders have been severely affected financially as a consequence of the ongoing pandemic, not least those in the cultural sector and the tourism and hospitality industry. Some of these companies have not been able to benefit from the measures presented so far, such as support for short-term lay-offs and reorientation support. The Government is therefore proposing support to sole traders.
The proposed support bears great similarity with the reorientation support, but it specifically targets sole traders who have suffered a large fall in turnover as a consequence of the ongoing pandemic. These companies can receive compensation for 75 per cent of their fall in turnover. One condition is that the sole trader must have had a turnover of at least SEK 200 000 during the previous year. Like the reorientation support, it is divided into three support periods: March to April 2020, May 2020, and June to July 2020. The corresponding month or months in the previous year constitute each support period’s reference period.
For support to be granted, net turnover for:
- March to April 2020 must have been less than 70 per cent of net turnover for the reference period in 2019;
- May 2020 must have been less than 60 per cent of net turnover for the reference period in 2019; and
- June to July 2020 must have been less than 50 per cent of net turnover for the reference period in 2019.
A sole trader may receive support totalling SEK 120 000, distributed across the three support periods: March to April (SEK 48 000); May (SEK 24 000); and June to July SEK 48 000).
A memorandum containing a proposal on turnover-based support to sole traders will be circulated for comments shortly.