COVID-19 - Further bailout packages on their way to Danish enterprises
Tuesday evening, in the struggle against COVID-19, the Danish Prime Minister presented new drastic measures with temporary effect as from Wednesday 18 March 2020 at 10.00 a.m. until 30 March 2020.
Tighter restrictions on freedom of assembly to the effect that it is now forbidden that more than ten people come together in the public domain in connection with meetings, events and activities - indoor as well as outdoor.
However, this prohibition is not applicable to public transport, private homes or workplaces.
Temporary closure of a large number of shops, stores and shopping centres comprising among others:
- Cafés, restaurants, and eating places - however, it must still be possible to deliver food and drink on a takeaway basis;
- Night clubs, bars/pubs, etc.;
- Shopping centres and the like - the shutdown order does not include convenience stores and pharmacies located in the centre;
- Sport centres and leisure facilities, etc.;
- Certain liberal professions in the service sector with close customer contact - except for healthcare treatments
New industrial initiatives are coming up to help the affected enterprises and secure their liquidity. The Danish government has just presented two temporary compensation schemes to inject direct capital from the State into the enterprises. Later today, the parties of the Danish Parliament will come together for an emergency meeting to discuss the bailout packages further.
1. Temporary compensation scheme for self-employed persons
The new scheme is to provide compensation to self-employed persons or other small businesses experiencing a decrease in turnover of more than 30 per cent as a result of COVID-19.
The State's contribution to the enterprises covered by the scheme will amount to 75 per cent of the loss of turnover (however, capped at DKK 23,000 per month or DKK 34,500 per month if the self-employed person has an assisting spouse). The loss of turnover must be documented in the application by means of a solemn declaration, subsequently to be followed up with the actual decrease in turnover.
So far, the compensation period will run from 9 March 2020 until 9 June 2020. The compensation scheme is applicable to enterprises registered in the Danish Central Business Register with up to ten full-time employees.
2. Temporary compensation scheme for overhead expenses
The State will provide temporary compensation to particularly severely hit enterprises experiencing an extraordinary decrease in their revenue base (more than 40 per cent) as a result of the Danish authorities' measures to reduce the spread of infection in Denmark.
The proposed arrangement will cover up to 80 per cent of the overhead expenses of the enterprise, including, inter alia, rent, expenses for non-terminable contracts, etc.
The compensation will be applicable across trades for a period from 9 March 2020 until 9 June 2020. The aim is that compensations are paid out to the needing enterprises as quickly as possible.
Read more about the schemes here