From 11 May 2020 enterprises negatively affected by COVID-19 outbreak can apply for compensation of damage, as Law Firm ALTERNA’s attorney-at-law and partner Annika Vait and lawyer Kristena Paalmäe wrote in their recent legal blog post.
Enterprise Estonia offers two kind of crisis subsidies to enterprises: (1) partial compensation of damages for small enterprises and (2) partial compensation of damages specifically targeted at tourism sector. The offered measure is established by the Government of the Republic of Estonia in order to overcome economic difficulties caused by the emergency situation.
It is important to note that at least currently each enterprise applying for subsidy can only choose one subsidy from Enterprise Estonia’s crisis subsidies – receiving one subsidy excludes granting another subsidy. In other words, if the enterprise receives one subsidy from Enterprise Estonia, then it can not apply for other crisis subsidies in Enterprise Estonia. This does not affect applying for other subsidies (e.g. temporary wage subsidy from Estonian Unemployment Insurance Fund).
Applications will be processed in chronological order of their submission until the budget resources for funding the measure end.
As written, it is possible to apply for the following crisis subsidies from Enterprise Estonia:
1. Partial compensation of damages for small enterprises negatively affected by COVID-19 outbreak.
Small enterprises whose turnover in 2019 financial year was more than 20 000 euros and less than 40 000 euros can apply for subsidy of 3000 euros.
Small enterprises whose turnover in 2019 financial year was more than or equal to 40 000 euros and less than 100 000 euros and whose turnover in March or April 2020 fell more than 30 percent compared to the turnover in the same month in 2019 can apply for subsidy of 5000 euros.
Additional conditions of applying for subsidy are available here: https://www.eas.ee/teenus/covid-ettevotlus/
2. Partial compensation of damages caused by COVID-19 outbreak specifically targeted at tourism sector.
Enterprise Estonia offers subsidies for tourism enterprises, incl. accommodation-, catering- and travel enterprises and tourist attractions. In addition to that, tourism service providers can also apply for subsidy.
The amount of subsidy is 2000-60 000 euros depending on the field of activity, size of enterprise, loss of income and labour taxes paid to the state.
Additional information and conditions of applying for subsidy are available here: https://www.eas.ee/teenused/?eas=821
We wish everyone good health and strength to overcome difficult times!
Law Firm ALTERNA