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Closure compensation for medium-sized and large companies

The application period for the closure compensation for medium-sized and large companies ended on August 13th. The auditor’s report required to be attached to the application must be submitted by 1 November 4:15 p.m.

  • The application period for the closure compensation for medium-sized and large companies ended on August 13th.

    The auditor’s report required to be attached to the application may be submitted later, but no later than 1 November by 4:15 p.m.

    The application round for closure compensation for medium-sized and large companies or groups with at least 50 employees is from July 15 to August 13. If the company is part of a group, the closure compensation for medium-sized and large companies is always applied for at group level, not as an individual company.

    A company can apply for closure compensation if its premises were closed to customers temporarily last spring by law or by an official order, and its turnover has decreased by more than 30 % in calendar months of the closing period compared to the corresponding period in 2019. Closure compensation is intended for restaurants and other food and beverage serving companies, and sports facilities, gyms, public saunas, swimming pools and spas, as well as indoor playgrounds.

    There is a separate closure compensation for small and micro-sized companies with less than 50 employees. Read more from our web page:

    CLOSURE COMPENSATION FOR SMALL AND MICRO-SIZED COMPANIES

  • What is closure compensation for large businesses about?

    The closure compensation for medium-sized and large companies applies to companies and groups of companies with at least 50 employees, and whose premises have been ordered to be closed by law or by a decision of the public authority. Such companies include restaurants and other food and beverage serving companies, which were temporarily closed to customers in the spring on the basis of the Act on Accommodation and Food Service Activities. 

    Companies or groups whose premises have been closed by the Municipality or the Regional State Administrative Agency by means of the Communicable Diseases Act may also apply for compensation. These include sports facilities, gyms, public saunas, swimming pools and spas, as well as indoor playgrounds. 

    Check the regional closure orders on our map page before applying for the closure compensation. 

    Closed companies can also apply for cost support if the conditions for the aid are met. 

  • Who is the closure compensation for large companies intended for?

    The closure compensation for medium-sized and large companies is intended for companies or groups employing at least 50 employees. To receive compensation, the turnover of a company or group must have decreased by more than 30% in calendar months of the closing period compared to the corresponding period in 2019.

    The closure compensation applies to restaurants and other food and beverage serving companies that have had to be temporarily closed to customers based on the Act on Accommodation and Food Service Activities. However, food take away sales are allowed. The compensation shall be calculated based on the activity to which the closure relates.

    Compensation may also be paid to companies ordered by the municipality or the Regional State Administrative Agency to close based on Section 58g of the Communicable Diseases Act.

    Information on the terms and conditions of the closure compensation for micro and small companies employing fewer than 50 employees can be found on our service page.

  • When can I claim compensation?

    The application period for the closure compensation for medium-sized and large companies will start on 15 July 9 a.m. The application period ends on 13 August 4:15 p.m.

    The auditor’s report required to be attached to the application may be submitted later, but no later than 31 October by 4:15 p.m.

  • How do I apply for closure compensation for large companies?

    If the company is part of a group, the closure compensation for medium-sized and large companies is always applied for at group level, not as an individual company.

    The group applying for closure compensation must submit the application form to the State Treasury by 13 August 4:15 p.m. The auditor’s report required as an annex, as well as a supplementary information sheet showing information on the turnover during the comparison and closing period, the salary and inflexible business expenses, losses during the closing period and other state aid received for the same costs and insurance claims granted for the same period must be submitted by 4.15 p.m. on 31 October 2021.

    The instructions for the auditor’s report are attached to the application form and can also be found on our website (in Finnish or Swedish).

    You can download the application form and its attachments in PDF format from our website in Finnish or Swedish at the beginning of the application period.

    The PDF file contains the application form, the supplementary information sheet and the auditor’s instructions.

    Submit the application electronically via the Security Message service: https://turvaviesti.valtiokonttori.fi.

    We do not recommend sending personal data via unencrypted email connection.
    The application can also be submitted by post: State Treasury, P.O. Box 14, 00054 STATE TREASURY

  • What are the conditions for obtaining closure compensation for large companies?

    A group or a company may apply for closure compensation for medium-sized and large companies if:

    • the company’s customer premises have been completely closed by government decree, or by decision of the Regional State Administrative Agency based on Section 58 g of the Communicable Diseases Act
    • the company has a Business ID
    • the group employs at least 50 employees
    • net sales have decreased by more than 30% compared to the period corresponding to the closing period in 2019

    The facilities designated for closure could be used for supervised hobbies for children born in 2008 and younger. The decision to close the premises did not concern professional sports or activities covered by private or family life.

  • Obstacles to the granting of closure compensation for large companies

    Voluntary closure of the premises is not enough to justify the closure compensation. Similarly, if a company’s number of customers is limited but its premises are not completely closed, the company cannot receive closure compensation.

    Obstacles to the granting of closure compensation are always examined at company level.

    If any of the obstacles mentioned below are met for one company in the group, no closure compensation shall be granted by law:

    1. The company is not registered in the prepayment register.
    2. The company has failed to comply with the obligation to report taxation.
    3. The company has tax debt information entered in the tax debt register.
    4. Enforcement collects unpaid taxes from the company
    5. The company has been declared bankrupt or has a case pending before the court concerning bankruptcy.
    6. The company was in difficulty before the coronavirus pandemic (31 December 2019).

    Definition of a company in difficulty in the EU Regulation:

    A company in difficulty refers to a company in accordance with Article 2(18) of the General Block Exemption Regulation of the EU. According to the definition, a company is in difficulty,

    1. if more than half of its share capital has disappeared as a result of accumulated losses (limited liability companies),
    2. more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses (companies where at least some members have unlimited liability for the debt of the company),
    3. the company is subject to collective insolvency proceedings,
    4. the company has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan,
    5. the company is not an SME, and for the past two years, its book debt to equity ratio has been greater than 7.5 and its EBITDA interest coverage ratio has been below 1.0.

    Only section c applies to SMEs that were under 3 years of age on 31 December 2019.

  • How much compensation can I get?

    The closure compensation for medium-sized and large companies compensates for 70 % of the difference between revenue and costs during the closure period. The loss for closing time may not exceed the sum of wages and inflexible expenses for the closing time of the closed business.

    The maximum amount of aid per group is EUR 1.8 million. The aid ceiling per group under the framework aid scheme is EUR 10 million.

  • Does the aid already granted have an impact?

    Medium-sized and large companies or groups may apply for closure compensation even if the company has already received other direct supports to mitigate the consequences of the coronavirus pandemic. However, other EU subsidies granted for the same period will be deducted from the closure compensation. The EU’s EUR 10 million aid ceiling per group must not be exceeded.

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