Applications for aids are on the decline: Lex Delles

So far €531 million have been awarded to small and medium-sized companies. 57,000 such demands have been filed since their introduction. Two options remain active at the moment: relaunch aids and support for uncovered costs, explained the politician from the Democratic Party (DP).

Due to the ongoing pandemic, many businesses are still not able to function properly, which may be caused by delivery shortages, positive infections, or government restrictions at the workplace. The financial aids have therefore been designed to help out those directly affected by a Covid measures, Minister Delles noted.

Mostly affected are enterprises active in the hospitality sector: restaurants, cafés, hotels, and event companies. This means that a wide range of professions, ranging from chefs to sound technicians, may be affected, which is why the support has now been extended until the end of February 2022. The application deadline for the new request is 15 May.

Compared to the same time last year, Luxembourgish businesses are in a more favourable position, the DP politician further explained. Demands for support have continuously decreased in numbers over the past couple of months. 76 applications were made in November this year, while 500 were registered in October 2020. 350 of those were relaunch aids, which means that the concerned businesses lost at least 25% of their revenue.

Minister Delles conveyed that some months even saw up to 2,000 demands. When it comes to bankruptcies, he explained that the rate recorded since the beginning of the pandemic is actually lower than the regular one, which proves the efficiency of the government support. Similarly, partial unemployment played a significant role in keeping businesses afloat during that time.

The politician was unable to determine how long the support will remain on offer. Attention has to be paid as to not create a situation of disloyal competition with other businesses, he noted. The amount of aids is therefore continuously adjusted to the current situation.

The next challenge of the hospitality sector will be the introduction of the 2G+ rule. The government will make 1.5 million rapid tests available as of 29 December. Once they run out, business will have to find their own solution to implement the new rule. However, those eligible for aids for uncovered costs will have their tests reimbursed through the aid.

Companies will similarly be challenged by the introduction of the 3G rule for all employees as of 15 January 2022. Minister Delles expressed his belief that only few problems should arise however. After all the same rule is already in place in the hospitality sector which worked perfectly fine, he concluded.