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Enhanced turnover-based support for sole traders and turnover-based support for trading partnerships

Published

As the Government previously announced, turnover-based support for sole traders – which currently applies for the period March to July 2020 – will be extended to include the period August 2020 to February 2021. The Government also previously announced the introduction of a specific turnover-based support targeting trading partnerships, including limited partnerships in which at least one partner is a natural person. This support will cover the same period, that is March 2020 to February 2021. Today, the Government can announce that the level of support for November 2020–February 2021 will be raised from 75 to 90 per cent. The Government’s proposal is based on an agreement between the government parties, the Centre Party and the Liberal Party.

To help sole traders bridge the financial impact of the COVID-19 pandemic, a specific turnover-based support for sole traders was introduced in November 2020. Under the current regulations, this turnover-based support for sole traders covers March–July 2020.

Turnover-based support for sole traders for March–July 2020

This support targets sole traders affected by a major drop in turnover as a result of the ongoing pandemic. The support covers three different support periods. For the March to April 2020 support period, sole traders must have lost at least 30 per cent of their turnover compared with the corresponding reference period in 2019. The corresponding level is 40 per cent for the May support period and 50 per cent for the June to July support period.

Turnover-based support is conditional on the sole trader conducting their business operations in Sweden, being approved for F-tax, and having a net turnover in 2019 of at least SEK 200 000. Support may amount to 75 per cent of the actual turnover loss. For the period March to July, support may amount to a maximum of SEK 120 000 per business.

County administrative boards process and take decisions on the support. Applications for support are made via the website of the National Board of Housing, Building and Planning, which also disburses the support. The application period for turnover-based support for March–July is open until 31 January 2021.

Turnover-based support for sole traders for August 2020– February 2021

The Government previously announced that turnover-based support for sole traders will be extended to include the period August 2020 to February 2021. For the August to October 2020 support period, sole traders must have lost at least 40 per cent of their turnover compared with the corresponding reference period in 2019. For the November to December support period, the corresponding level is 30 per cent. This level also applies for the January to February 2021 support period.

On extension of the turnover-based support, the turnover requirement for 2019 will continue to be SEK 200 000 for the August to October support period. As of November, the turnover requirement will be reduced to SEK 180 000, so that more sole traders will be able to access the support. For the August to October support period, the maximum support per business amounts to SEK 72 000. For the November to December 2020 support period, the maximum support per business may amount to SEK 48 000. This level also applies for the January to February 2021 support period.

Turnover-based support targeting trading partnerships

The Government also previously announced the introduction of a specific turnover-based support targeting trading partnerships, including limited partnerships in which at least one partner is a natural person. This design of this support will be similar to that of turnover-based support for sole traders.

Extension of the turnover-based support for sole traders and the new support for trading partnership, including limited partnerships in which at least one partner is a natural person, requires preparation such as new ordinances regulating the conditions for extension and for the new support. This means that there will be new application rounds for the extended turnover-based support for sole traders and a new application for support for trading partnerships.

Processing the support

The county administrative boards will also process and take decisions on the extended turn-over based support for sole traders and the specific support for trading partnership, including limited partnerships in which at least one partner is a natural person. Applications for support are made via the website of the National Board of Housing, Building and Planning, which also disburses the support. When the new ordinances have entered into force, the agencies will provide information about how to apply.

New support level

The Government can now also announce that the support level will be raised as of the November–December 2020 support period. The support level will be 90 per cent of the turnover loss instead of 75 per cent. This is to respond to the tighter restrictions that were introduced in November 2020 to limit the spread of the virus and that can have a negative financial impact on small businesses. This applies to both the turnover-based support for sole traders and the specific turnover-based support for trading partnerships, including limited partnerships in which at least one partner is a natural person.

 

Questions

Media representatives and journalists should contact the press secretary. Others with questions should call the Government Offices switchboard or email the Ministry of Enterprise and Innovation’s senior registry clerk.

Press contact

Sara Khatemi
Press Secretary to the Minister for Enterprise and Innovation Ibrahim Baylan
Phone (switchboard) +46 8 405 10 00