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Closure compensation

The processing of applications is busy at the moment. The processing time of applications varies considerably, but typically it is 21-45 days. Thank you for your patience!

Compensation must be applied for
within 4 months
of the end of the month in which the obligation to keep the premises closed ended
  • APPLY FOR CLOSURE COMPENSATION

    The processing of applications is busy at the moment. You can check the status of your application on the statistics page. The processing time of applications varies considerably, but typically it is 21-45 days. Thank you for your patience!

    To speed up the processing of your application, check our web page for closure orders for your region:

    Closure orders

    The round of applications for closure compensation started on 12 May at 9:00. Companies can apply for the compensation on the State Treasury’s website via electronic application form. The closure compensation must be applied for within four months of the closure of the customer premises.

    The closure compensation is for small and micro companies with a maximum of 49 employees. The company can apply for the compensation, if it’s temporarily forced to close its customer premises due to an Act or an official order. Companies eligible for the compensation are restaurants and other food and beverage service businesses, sports facilities, gyms, spas and indoor playgrounds.

  • What is it about?

    The closure compensation is a subsidy to companies that have had to close their premises completely by law or because of a decision of the authority. Eligible companies include restaurants, gyms, swimming pools and indoor playgrounds. The closure compensation is intended for micro or small companies with less than 50 employees. Compensation for large companies is in preparation, the timetable and details will be specified later.

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

  • Who is the closure compensation intended for?

    The closure compensation applies to restaurants and other food and beverage serving companies, that had to be temporarily closed to customers based on the Act on Accommodation and Catering Operations. However, food take away sales are allowed. The compensation is calculated for the activity to which the closure relates.

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

    Who can apply for closure compensation

     

  • When to apply for support?

    The application period for the closure compensation began on Wednesday 12 May 2021. Compensation must be applied for within four months of the end of the month in which the obligation to keep the premises closed ended.

  • How to apply for closure compensation?

    You can apply for closure compensation in the State Treasury’s e-service. The e-service guides you in completing the application. The application can also be saved as a draft and continue later.

    If necessary, you can order a printable application in PDF format from paperihakemus.sulkemiskorvaus(at)valtiokonttori.fi. The application form arrives as a return message.
  • What are the conditions for receiving compensation?

    You can apply closure compensation if:

    • the company’s premises have been completely closed by government decree, or by decision of the Regional State Administrative Agency on the basis of Section 58 g of the Communicable Diseases Act
    • the company has a Business ID
    • the company is a micro or small company with less than 50 employees

    The form of the company is not relevant to obtaining compensation.

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

  • Obstacles to receiving closure compensation

    Voluntary closure is not sufficient to justify 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.

    According to the bill, support will not be granted in the following situations

    1. The company is not registered in the prepayment register
    2. The company has failed to file a tax return
    3. The company has tax debt information in the tax debt register
    4. Recovery proceedings has collected unpaid taxes from the company
    5. The company has been declared bankrupt or is the subject of bankruptcy proceedings.
    6. The company was in difficulty before the coronavirus pandemic (31 December 2019). See the definition of a company in difficulty. Exception: This does not apply to small and micro enterprises that have been in difficulty before 1.1.2020. They may be granted support if the company is not in bankruptcy or reorganization proceedings at the time the support is granted and has not received rescue or restructuring aid.

    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,

    a. if more than half of its share capital has disappeared as a result of accumulated losses (limited liability companies),
    b. 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),
    c. the company is subject to collective insolvency proceedings,
    d. 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,
    e. 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 you get?

    The amount of the closure compensation is based on the amount of the company’s expenses in February 2021, and how much of the business has been closed.

    For example, the calculation of compensation for restaurants considers only the sale of closed business, i.e. a restaurant hall. On the other hand, the takeaway share is not reimbursed.

    The compensation is paid to the company for the period during which it has been closed. The company is reimbursed 100% of wage costs and 70% of other inflexible expenses.

    Inflexible expenses for the closure compensation are the same as in business cost support.

    Closing compensation does not compensate for business losses

  • How do other granted supports affect?

    The closure compensation can be applied for even if the company has already received other direct supports to mitigate the consequences of the coronavirus pandemic. However, the maximum compensation per company provided for by the EU, EUR 1.8 million, must not be exceeded. The maximum amount of support is calculated considering all support granted under the EU framework support programme, and received by an individual company or corporate group.

    You can read more about the EU framework support programme on the cost support webpage.

  • Do the following before applying

    • The application can be made by a person with the right to sign that the company entered in the trade register/register of associations, or another person who has received a Suomi.fi authorization. Check that your authorization to represent your company appears in the Suomi.fi authorization register. If not, check that the signatories are correct in the Patent and Registration Office’s register. Closure compensation is applied for with the authorization “Yritysrahoituksen hakeminen”. Suomi.fi authorizations >
    • To apply for compensation, the applicant must have a business ID. For more information, see: Business Information System >
    • The closure compensation can only be paid to the bank account that the company has reported to the Tax Administration. Check the account number you have entered and, if necessary, enter a new number on your My Tax page >
  • The authority to sign and Suomi.fi e-Authorizations

    Filling in the application as an authorized signatory

    Applications for closure compensation may be submitted by a person who has the right to sign on behalf of the company. In addition, the application can be filled in by a person who has a role entered in the Trade Register, the Business Information System or the Register of Associations that entitles the person to represent the company. The roles entered in the Trade Register that entitle a person to represent a company are:
    • Managing Director
    • Substitute Managing Director
    • Self-employed person
    • Property Manager
    • Head Property Manager
    The roles marked in the Register of Associations that entitle a person to represent an association are:
    • Other authorized signatory who is marked on the register as having the right to represent the association alone

    Granting a mandate for a company representative

    A company may also authorize another individual to represent the company via the Suomi.fi e-Authorizations service. Select the mandate ‘Application for corporate financing’.

    You can authorize the following people to represent a company:
    • a private entrepreneur, on behalf for their own business
    • the company’s managing director or substitute managing director
    • an authorized signatory who is marked in the Trade Register as having the right to represent the company alone
    • all the members of the company board marked in the Trade Register, acting together
    • either the chairperson and a board member or two board members who have been entered into the Trade Register in accordance with the rules of representation
    • an individual who the company has given either the right to grant a mandate or the representative’s right to grant a mandate.
    The following persons may authorize on behalf of a registered association:
    • the association’s chairman, board member or other authorized signatory who is marked in the Register of Associations as having the right to represent the association alone
    • an individual which the association has given either the right to grant a mandate or the representative’s right to grant a mandate.

    The customer service of the Digital and Population Data Services Agency is available to assist companies in the use of Suomi.fi mandates.
    You can contact us on: +358 295 53 5115

    Note. Representative of the association or foundation: if you have any problems with Suomi.fi authorization, please contact the closure compensation customer service sulkemiskorvaus@valtiokonttori.fi

  • Associations and foundations

    The chairman of the association, who is entered as a chairman in the Finnish Register of Associations, may fill in the application for closure compensation on behalf of the association in e-service. In addition to the application, an association must send evidence via a supplementary information notice that the chairman has the right to sign for association alone or is authorized by the signatories to send the application (association register / rules / minutes / power of attorney).

    In the case of foundations, the application should be sent as a paper application if the authorization rights are not already defined.

    If necessary, you can order a printable application in PDF format from paperihakemus.sulkemiskorvaus(at)valtiokonttori.fi. The application form arrives as a return message.
  • What information do you need to apply for compensation?

    You must fill in the application the company’s basic information, the sales data for February 2021 per site, the total turnover in February 2021 and the business name entrepreneur’s annual YEL income and YEL payments. In addition, information on EU framework programme support related to the coronavirus pandemic must be provided.

    The State Treasury receives some of the necessary information from the Tax Administration, the Incomes Register, Statistics Finland and other authorities that have granted state aid.

    The State Treasury strives to make applying as effortless as possible. The application has been tested with the customer panel and has received positive feedback.

  • Video instructions