European Covid-19 support for startups
The coronavirus has a firm grip on our social life and the economy all over the world. Hardly any company is spared: No matter whether it is a micro-enterprise or a large corporation, they all suffer from the economic consequences of the pandemic. However, startups are often hit particularly hard. They mostly don’t have any financial reserves they can rely on and they might have trouble applying for loans due to a lack of security and stability. To resolve the challenges faced by startups, some European governments have already unveiled measures that will address the concerns of small and medium-sized businesses that are not being able to pay their debt and are running out of cash. To help entrepreneurs get the support from their government, we put together a list of addresses that might be helpful.
Support programmes in Germany, the UK, Ireland and Italy
Germany was one of the first European countries to put comprehensive rescue packages in place for companies as well as startups. Businesses can apply for a loan with the German KfW bank. Another useful address is the website of the German Federal Ministry of Economics and Technology that gives an overview of different support programmes.
The UK government has taken measures which offers small companies that cannot afford to pay their taxes to ask HM Revenue and Customs for an agreement to suspend debt collection. On top, the government decided to waive the interest of 3.5% on deferred tax payments for startups. Entrepreneurs can also approach the British Business Bank which offers loans to startups and small businesses.
Irish startups can turn to the independent non-profit organization Scale Ireland. The organization has put together a comprehensive document with addresses of banks and support institutions for startups and small businesses.
In Italy, the association Italia Startup has published SOS guidelines for startups, giving advice on how to handle the situation.
Help offered in the Netherlands, France, Sweden and Denmark
The Dutch Chamber of Commerce has come up with a set of FAQs for entrepreneurs in the Netherlands and answers questions such as “How can I prevent bankruptcy?” and “Who qualifies for the reimbursement?”.
La French Tech’s coronavirus guide gives an overview of French measures for startups. These include a comprehensive support plan targeted at startups by the French Ministry of State for Digital Affairs and Bpifrance, a public investment bank.
The Swedish government has introduced different types of alleviations for startups and small businesses. Employers do not need to pay their contributions immediately and can ask for tax and VAT deductions. In order to apply for a temporary respite, entrepreneurs can visit the website of Skatteverket.
Danish startups and small companies get to apply for loans and tax reductions, too. Find here the overview of relief programmes for startups and small companies offered by Copenhagen Capacity, the official organization for investment, promotion and economic development in Denmark.
While these programmes are restricted to startups based in the respective countries, the European Investment bank also offers support to all businesses in Europe.