State aid to business continues after the end of quarantine and with the continuation of the emergency. Concerned about the opportunities for members of the LATIA Export Development cluster to export, the Lithuanian Association of Clothing and Textile Companies (LATIA) and other business organizations emphasized in their appeals to the authorities that it is very important to ensure post-quarantine financing of jobs.
As long as the emergency persists, it is still possible to declare downtime for employees and receive subsidies for their wages, and with employees working to apply for subsidies for a period of 6 months. The amount of subsidies during downtime remains the same as during quarantine - 70 and 90%, for employees over 60 years of age - 70 and 100 percent. Grants with working employees can be granted for up to 6 months, but not longer than until the end of the year, their amounts months 1-2 are 100%, in months 3-4 are 50%, in months 5-6 months - 30 percent from the calculated salary, but not more than 607 euros gross.
LATIA proposes to increase the intensity of loan financing
We are constantly proposing to reduce restrictions and increase the intensity of loan financing for corporate working capital. Since mid-June, companies that on 31 December 2019 had already been encountering difficulties but have demonstrated that they are no longer considered to be in difficulty at the time of application, can already respectively contact INVEGA or the financial intermediaries implementing the measures, and to use INVEGA's measures for the mitigation of COVID-19 effects: rent compensation, overdraft loans ASAP (for loans up to EUR 500,000 for businesses that were not paid for the goods and services provided and those unable to operate), loans to businesses most affected by COVID-19 and loans with a portfolio guarantee under the Portfolio Loan Guarantee Facility 2 (for SMEs and large companies in all sectors of the economy that experienced difficulties due to COVID-19, guarantees for loans and related leasing transactions of 80%).
More opportunities to compensate rent
Also from June 12 amendments to the measure "Partial rent compensation" came into force: the description of the measure is extended and compensation is provided to the companies and entrepreneurs most affected by COVID-19 not only when their activities were or are banned during the quarantine period, but also if they were limited. The rent is reimbursed during the quarantine period and for two months after its end. Applications can be submitted until 1 December 2020.
Prolonged deferral of tax liabilities
As suggested by LATIA and other business organizations, the deferral of tax liabilities to state institutions of the Republic of Lithuania has been extended. Businesses affected by COVID-19 may apply to SODRA asking not to pay their contributions not paid due to quarantine and emergency situation since the start of the quarantine and two months after its end (until 17 August 2020) and the debt can be paid without interest within a period not exceeding 5 years.
We seek government support for large companies as well
We continue to work actively to ensure that large companies receive government support in the same way as SMEs. Amendments are currently being prepared, including the exclusion of the ASAP and loan compensation instruments from the staffing criterion. From the beginning of July, the Business Support Fund should be launched to help medium-sized and large Lithuanian companies.