The government extends conversion support to corona-crisis companies

The purpose of the adjustment support is to help companies that have run into financial difficulties due to the crisis that has followed in the footsteps of the pandemic.

The idea is that companies should be able to cope with the acute part of the crisis and at the same time be able to adjust and adapt their operations.

Previously, the adjustment support applied for March and April 2020. Now they want to extend the support to also apply to May, June and July this year.

The proposal is an agreement between the government, the Center Party and the Liberals.

- We see a continued need to support companies, not least those affected by government restrictions due to the continued pandemic.

We need to save jobs and we must do what we can so that unemployment does not go away more than it already does, says Liberal party leader Nyamko Sabuni.

Will help the hardest hit

The extension is intended to help not least the companies that are normally dependent on the hospitality industry.

- It is primarily about companies that have seasonal activities, the hospitality industry.

It is these who have lost the most and will benefit most from this support, says Nyamko Sabuni.

The proposal is expected to be tabled in the Riksdag in an extra amending budget next week.

However, it must be approved by the European Commission before it can be applied.

The cost is estimated at a total of SEK 9 billion.

- We do not know in advance if more is needed or if it will be less in the end, the important thing is that companies that have lost a large part of their turnover know that there is support to apply for, says Nyamko Sabuni.

Must have lost more than 40 percent

In order for support to be granted for May 2020, it is required that the company has lost more than 40 percent of its sales compared with the previous year.

In June and July, it is required that 50 percent of sales from 2019 have been lost.

Companies can receive adjustment support with 75 percent of the percentage loss in sales, calculated on the company's fixed costs for May – July 2020. In May, the maximum amount is SEK 75 million per company, in June and July a maximum of SEK 150 million.