HCA assists in the quality assuring and testing the cash support scheme. This means that we have in-depth knowledge of the compensation scheme for crisis-hit companies in connection with Covid-19.
We want to clarify the scheme that is being established. The scheme assumes that the company must have a loss of revenue. It is reported per month and first time for March 2020. It is initially measured against the same period last year. For newly established companies, the average of January and February can form the basis for turnover. This may also apply to other companies where the comparison with 2019 is not relevant. Loss of revenue must be greater than 20% for March and 30% for April and May.
The application portal opens on April 17 and must be applied for every month.
A distinction is made between companies that are closed by the state and other companies that are not. Companies that are required to be closed can get up to 90% of the costs covered, while others can get up to 80% covered with deducted deductible of NOK. 10,000. Compensation amount below NOK 5,000 is not paid. The maximum compensation amounts to NOK 30 million.
Compensation is given on the basis of the percentage of lost revenue (%) against “inevitable” fixed costs. These costs are specified based on the business assignment’s account breakdown:
6300 Ren local
6340 Light, heat
6395 Renovation, water, drainage, cleaning, etc.
6400 Hire machines, fixtures and fittings, etc.
6700 Foreign service (accounting, auditing fees, consulting, etc.)
6995 Electronic communication, postage, etc.
7040 Insurance and taxes on means of transport
7500 Insurance premium
Net interest expense
There is a requirement that there should be activity and employees in the business. There are exceptions for individual companies where the business is the owner’s main source of income. Businesses under bankruptcy or petition for this fall outside of the scheme.
In addition to automatic checks and cross checks in the application process, checks will be performed afterwards to detect cheating and fraud. The applicant must also be able to document the figures at a later date and have confirmation from the auditor or accountant that the amounts stated are correct. The details of these checks are currently unknown.
NB! This is a scheme that has not been fully adopted by the Storting or approved by ESA. There may also be adjustments along the way, so here we have to follow and adapt to any changes.
Contact us to see if your company can receive cash support!
+47 926 96 541
+47 909 35 972
+47 911 49 284