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05/26/20

Government assistance in Sweden for fund a company

Lapland Spirits AB is a Startup Company with Growth Focus in Times of Covid-19

The spread of the COVID-19 virus is an international emergency for people's health and lives. At the same time, the outbreak is having a big effects on the economy in Sweden and internationally. To reduce the effects of pandemic outbreak and to decrease the spread of the virus, several economics measures have been taken.

The measures taken so far in response to the COVID-19  for startup financial funding are outlined below.

Crisis package for little and startup enterprises in Sweden

To particularly decrease the impact of little and medium-sized enterprises, a crisis package was presented by the Swedish government on 25 March.

The package contain a central government loan promise to make it simpler for firms to access financing. The proposal means that the central government will promise seventy percent of new credits bank offer to firms that are experiencing instant capital funds due to the COVID-19 but that are otherwise robust.

To decrease costs for firms with great difficulties as an outcome of the COVID-19 - in sectors such as robust consumer goods, restaurants, hotels and certain other activities. The government proposes offering support that aims to facilitate and speed up renegotiation of rents. The idea is that central government will cover fifty percent of the rental reduction up to fifty percent of the fixed rent.

Additional, the rules for tax allocation servers will be temporarily replaced so that sole proprietors extremely affected by the virus outbreak will get tax cuts. The latest rules mean that hundred percent of the taxable profits for 2019, up to SEK one million, can be set aside in tax allocation reserve, which can then be set off against likely future losses. This means that many filers get back the preliminary tax they paid in 2019. Additional, the previously presented proposal on fresh opportunities to defer tax payment will be expanded.

Increase credit facilities and loan guarantees for Swedish startup businesses

On 20 March, a range of measures were offered to make it simpler for Swedish startup businesses, mainly little and medium-sized businesses, to access finance at the hard time. Almi Företagspartner AB will get a capital contribution of SEK three billion to increase its lending to little and medium-sized businesses all through the country. The Swedish Export Credit Corporation credit framework will be raised from SEK 125 billion to SEK 200 billion and can be used to offer both state-supported and business credit to Swedish export firms. Additional, the Swedish Export Credit Agency will plan on credit promises that entail new and better credit opportunities for businesses. Here is a link to the Tillväxtverket.

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