The Norwegian government passes a new compensation proposal

Alongside central participants in trade and industry such as NHO, Virke, FinansNorge and LO, the government passed the frames for an arrangement of compensation for enterprises affected by the corona crisis. This is an arrangement that a great number of service and tourism/travel businesses will have the opportunity to benefit from.

The arrangement aims to contribute with cash to enterprises which suffers from lack of liquidity, aiding their ability to pay their expenses such as rent and insurance.

Who can apply for this?

The main principal for this arrangement is that it will be a swift and effective way in contributing to perpetuate and protect workplaces, and in this way contribute to help as many businesses as possible will survive the crisis we are in the midst of.

Businesses wanting this support will have to apply for it. It is emphasised that the time from applying to the money transfer to the establishment, will be as short as possible.
Companies allowed to apply for financial support within this arrangement, are those who are totally or partially affected by loss of income due to the Corona crisis.

The arrangement is meant to be temporary and is preliminary set for two months. If necessary, it will be prolonged.

The economic framework for this arrangement is calculated to a monthly cost somewhere between 10 and 20 billion NOK.

When is it possible to apply?

As this is written there is an intensive work going on regarding how to get the practical details related to the wording and the frames of the application. According to the minister og finance, it is scheduled to be in place during a week, Friday the 3 of April. By then it should be possible to apply electronically. More information will come in the following week, and smakmagasinet.no will keep up with information.

Necessary arrangement

All actors in the private sector participating in the design of the compensation schemes point to the importance of provide liquidity to keep and rescue workplaces in these difficult times. It will contribute to avoid bankruptcies and, in this way, see to it that there will be workplaces as the crisis passes.

The government thanked NHO, Virke, FinansNorge and LO for contributing with knowledge and competence in the work with designing the arrangement.
Furthermore, the aim is that the arrangement will contribute with liquidity fast. The goal is that the economic support will be in place within three weeks.