Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 6
Austria
Contributor: Wolf Theiss
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Loans and
financial
support
Financial assistance is available under several schemes that have been introduced in
Austria, such as:
•
EUR 15 billion emergency fund which is primarily intended for companies in sectors
particularly affected by the crisis. A combination of governmental guarantees for new
loans and grants for the coverage of fixed costs provided to companies which suffered
a loss of turnover of at least 40% in 2020 caused by the crisis will be made available
to ensure the liquidity of the companies. The companies must be located in Austria
and the fixed costs must have arisen from operating activities in Austria. Grants do
not have to be repaid. However, the companies are required to take all reasonable
measures to reduce fixed costs and maintain jobs, in particular, the distribution of
dividends is not permitted. It can be applied for the grants from 20 May 2020.
•
AWS State guarantee in the amount of 80% in order to secure credit facilities of up
to EUR 2.5 million granted to the SME by its house bank. Not eligible are associations
and SMEs (i) with an annual turnover of more than EUR 50 million, (ii) in need of
reorganisation, (iii) meet the statutory requirements for the opening of insolvency
proceedings at the request of creditors, (iv) in the tourism and leisure industry, (v) in
the banking and insurance sector, (vi) in the real estate sector, and (vii) in the fishing
and aquaculture industry or in the primary agricultural sector.
•
ÖHT State guarantee to be granted only to SMEs in the tourism and leisure industry (SMEs
with mixed business operations are also eligible). Guarantee in the amount of 80% in order
to secure bridging loans (overdraft facilities) granted to the SME by its house bank.
•
OeKB credit line granted to export companies is based on a bill guarantee. Conditions
of the assumption of liability are determined individually. The amount of the loan is
limited to 10% (large companies) or 15% (SMEs) of the company’s last year export
turnover. The individual loan is subject to a maximum upper limit of EUR 60 million per
company group.
•
Corona Relief Fund – Guidelines for the issuance of guarantees and direct loans from
the EUR 15 billion Corona-Relief Fund
•
Restricted working hours scheme (Kurzarbeit): Compensation available for
employers at the flat rate for each hour of work that is no longer required by an
employee due to COVID-19 for a maximum of 3 months (extension of a further 3
months is possible). During such period and for at least one month thereafter, the
employer may not terminate the employment. Part-time employees, self-employed
managing directors and board members are not eligible for such compensation
scheme. Irrespective of reduced working hours, the following salaries must be
paid to the employees: (i) for a monthly gross salary (before COVID-19) of less than
EUR 1,700, 90% of the net salary; (ii) for a monthly gross salary (before COVID-19)
between EUR 1,700 and EUR 2,685, 85% of the net salary; (iii) for a monthly gross
salary (before COVID-19) of more than EUR 2,685, 80% of the net salary; and (iv)
apprentices should receive 100% of their previous net salary. Companies are
required to report to the Public Employment Service (Arbeitsmarktservice, AMS)
the number of hours lost (via a payroll list) on a monthly basis. No reimbursement
will be due for any income above EUR 5,370 gross.
•
Social Security Deferral: There is an automatic deferral of social security contributions
for February, March and April 2020 for companies which had to close down due to
government regulations or are subject to a ban on entry relating to COVID-19.
Has the
government put
in place any new
bank funding
schemes?
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Employment
Sarah Wared | sarah.wared@wolftheiss.com | +43 1 51510 5200
Roland Marko | roland.marko@wolftheiss.com | +43 1 51510 5880
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
Government measures in key jurisdictions
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