Government measures in key jurisdictions 3rd edition final - Flipbook - Page 6
Sarah Wared | sarah.wared@wolftheiss.com | +43 1 51510 5200
Roland Marko | roland.marko@wolftheiss.com | +43 1 51510 5880
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
Has the
government put in
place any new
bank funding
schemes?
Employment
•
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.
What financial
support is
the government
providing to
businesses and to
individuals on
employment
issues?
6
Government measures in key jurisdictions