New non-repayable allowance for the self-employed

The Luxembourg government has decided to strengthen the support mechanism for the self-employed affected by the financial consequences of the COVID-19 pandemic. On 6 May 2020, on the proposal of the Minister for Small and Medium-Sized Enterprises, Lex Delles, the Government Council thus approved a draft Grand Ducal Regulation aimed at setting up new, single flat-rate, non-repayable financial aid in their favour. The amount of the new aid varies depending on the income bracket of the person concerned, these amounts being set at 3.000, 3.500 and 4.000 euros.

This aid is in addition to the certified emergency fund which was created by Grand-Ducal Regulation of 8 April 2020 in favour of self-employed workers. It will also benefit insurance brokers and agents who were excluded from the scope of the first aid. In addition, the aid may be granted irrespective of the number of staff employed by the self-employed person. The condition of not receiving a professional income exceeding the threshold of 2.5 times the social minimum wage is maintained.

The Minister for Small and Medium-sized Businesses stated that "we are prepared to take all necessary measures to support companies and self-employed persons in difficulty. The new non-refundable allowance is an important tool to overcome this period of crisis. This aid takes into account the income bracket of the self-employed person, thus ensuring targeted and equitable support".

Detailed information will be available tomorrow on the website. The form for submitting requests will be available on on Tuesday 12 May 2020. The request can be submitted through an online assistant available through the business space of MyGuichet.Lu using a Luxtrust product (e.g. Token, Smartcard or Signing stick) or an electronic identity card. This online form was developed by the Ministry of the Economy with the support of the Government IT Centre (CTIE).

It should also be noted that the General Directorate for Small and Medium-Sized Businesses has already paid 31.87 million euros to very small businesses and the self-employed as part of the aid for businesses affected by the financial consequences of the coronavirus COVID-19. Within the framework of the immediate non-repayable grant of EUR 5,000 for very small enterprises, approximately 5,770 applicants received financial assistance equivalent to a payment of EUR 28.8 million. Within the framework of the 2,500 euro emergency fund for the self-employed, 1,230 dossiers received a favourable opinion, which is equivalent to a payment of 3.07 million euros. 395 files were processed within the framework of the capital grant advances under the law of 3 April 2020, thus enabling more than 25 million euros to be paid out.

Press release by the General Directorate for Small and Medium-Sized Businesses

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