Small business owners, self-employed people, and medium-sized businesses that have been affected by the government's COVID-19 quarantine measures can apply for a loss compensation of at least 6 million won and up to 10 million won from the afternoon of the 30th.
The Ministry of SMEs and Startups has started the process of compensating for losses as a total of 62 trillion won in the supplementary budget (additional budget) was approved at the Cabinet meeting today.
Applications will be accepted from noon today and payments will start at 3pm.
However, for the first two days from today to the 31st, the 'odd-even system' is applied based on the last digit of the business registration number, and from June 1st, you can apply without distinction.
The following is a question-and-answer format for loss compensation payment target, application method, application/payment schedule, etc.
-- Who is eligible for loss compensation?
▲ A small business, small business, or medium-sized business with annual sales exceeding KRW 1 billion and less than KRW 5 billion, which was opened before December 15 last year and has been operating as of the 31st of the same month, but has decreased in sales.
There is no need for companies to submit separate data because the sales decline rate was determined in advance by the government using the National Tax Service database (DB).
-- What are the main industries of medium-sized enterprises added to the support target?
▲ Arts, sports and leisure-related services, professional, scientific and technical services, business facility management, business support, and rental services were included.
Accordingly, restaurants, cafes, academies, and indoor sports facilities with annual sales of more than 3 billion won and less than 5 billion won will also receive compensation for losses that have not been covered by the disaster subsidy so far.
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-- What are the application criteria?
▲ Considering the size of sales and the rate of decline, we pay a minimum of 6 million won to a maximum of 10 million won for each company.
Whether or not sales decrease is judged based on the annual or semiannual VAT reported sales in 2020 or 2021 compared to 2019 and 2021 compared to 2020.
If it is not possible to determine whether annual or semi-annual sales decrease or the size of the sales volume reported for VAT, the semi-annual or monthly average sales are compared using taxation infrastructure data.
-- Can closures receive compensation for losses?
▲ As of December 31 of last year, businesses that are in business are eligible for support even if they have closed after January 1 of this year.
However, companies that are difficult to be considered as operating businesses because they do not have both VAT reported sales and taxable infrastructure sales in 2020 and 2021 may be excluded from payment.
At this time, if it is confirmed that you have actually been in business, you can apply for support.
Detailed standards will be announced at a later time when payment is confirmed.
-- Can all companies that received quarantine subsidies receive compensation for losses?
▲ Even if you receive the 1st and 2nd quarantine subsidies, if you do not meet the sales reduction criteria for loss compensation, you are not eligible for payment.
However, among the recipients of the quarantine subsidy, the basic amount of 6 million won will be paid to businesses that have implemented quarantine measures such as business hours restrictions after August 16, 2020 in consideration of the business restrictions.
-- How much does one person get if he runs multiple businesses?
▲ If one person manages multiple businesses, up to four businesses are supported.
The amount is differentiated by 100%, 50%, 30%, and 20% for each company, up to a maximum of double payment.
-- When can I apply for loss compensation?
▲ The application period is about two months from 12 noon today (30th) to July 29th.
To 3.48 million companies pre-selected based on the disaster aid database, starting today, 'expedited payment', which provides subsidies as soon as they apply, starts.
'Confirmation payment' will start on the 13th of next month for 230,000 companies, including businesses that require separate verification, such as joint representative operation, and medium-sized enterprises with annual sales of 5 billion won or less.
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-- When will the payment start?
▲ In principle, compensation for loss is paid on the day of application and paid 6 times a day.
If you apply by 7pm, the funds will be deposited on the same day.
Specifically, if you apply from midnight to 10 a.m., payment is made at 12 noon, if you apply from 10 a.m. to 1 p.m., you will be paid at 3 p.m., if you apply from 1 to 3 p.m. at 5 p.m., and if you apply from 3 to 5 p.m. at 7 p.m. Payment is made at the time of payment, if you apply from 5 to 7 pm, you will be paid at 9 pm, and if you apply from 7 pm to midnight, you will be paid at 3 am the next day.
On the first day of payment, the payment will start at 3pm.
-- What is the specific application schedule?
▲ 3.48 million places subject to expedited payment will receive a text message from 12 noon today.
Today, based on the last digit of the business registration number, we will send out to 1.61 million even numbers, and on the 31st, one day later, to 1.62 million odd numbers.
For the first two days, the odd-even application system is implemented, and from June 1st, applications can be made regardless of odd-even.
250,000 businesses that run multiple businesses can apply by following the guidance message sent from the 2nd of next month.
-- How to apply?
▲ As long as you can apply on the day you can apply, you can do so 24 hours a day on the Loss Compensation website (Small Business Loss Compensation.kr) regardless of weekends or holidays.
You can access the loss compensation website by searching for 'small business loss compensation' or 'loss compensation' on portal sites such as Naver or Daum.
If you do not receive the notice, you can access the loss compensation website and check whether you are eligible for support according to the application schedule.
(Photo = Yonhap News)