Turnover-based support to be introduced for sole traders
In light of the severe financial impact of COVID-19 on many sole traders, the Government today decided on turnover-based support for sole traders. The support enters into force on 9 November and builds on an agreement between the government parties, the Centre Party and the Liberal Party.
Many sole traders have been hit hard financially by the ongoing pandemic, not least those in the arts and cultural sector and the tourism and hospitality industry. Some of these sole traders 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 has therefore decided to introduce turnover-based support for sole traders.
This support will be introduced through a new ordinance on turnover-based support. The new ordinance on support to sole traders is modelled on the provisions that apply to reorientation support.
Support may be provided for three support periods: March and April 2020, May 2020, and June and July 2020. The corresponding month or months in 2019 function as the reference period for each support period in 2020.
To qualify for support for March and April 2020, the sole trader’s net turnover for this period must be less than 70 per cent of net turnover in the reference period. To qualify for support for May 2020, the sole trader’s net turnover for this period must be less than 60 per cent of net turnover in the reference period. To qualify for support for June and July 2020, the sole trader’s net turnover for this period must be less than 50 per cent of net turnover in the reference period. The turnover reduction must be almost exclusively due to the spread of COVID-19.
Support may amount to 75 per cent of the actual loss of turnover. For March–July combined, a total maximum of SEK 120 000 may be provided per eligible recipient.
The ordinance enters into force on 9 November. Decisions on turnover-based support are made by the county administrative board and the support is disbursed by the Swedish National Board of Housing, Building and Planning. The closing date for applications for turnover-based support is 31 January 2021.
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