Government measures in key jurisdictions 5th edition - Flipbook - Page 6
Austria
Contributor: Wolf Theiss
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
What financial
support is
the government
providing to
businesses and
to individuals on
employment
issues?
6
Sarah Wared | sarah.wared@wolftheiss.com | +43 1 51510 5200
Roland Marko | roland.marko@wolftheiss.com | +43 1 51510 5880
•
The main wage subsidy program implemented due to the Coronavirus crisis is the
Short Time Work model (STW) as a temporary reduction of normal working hours
due to economic difficulties. This scheme provides for state financial aid to
compensate for the loss of work performance on working days. The goal is to
bridge the current difficult economic situation by way of a subsidy without having
to reduce the workforce. The normal working hours are reduced (shortened
normal working time). Employees receive STW aid (Kurzarbeitsunterstützung)
from the employer for the non-worked hours to bring their income closer to their
normal salary level. In order to do so, the employer receives a STW subsidy
(Kurzarbeitsbeihilfe) from the state. Under the STW model a reduction in working
hours down to an average of 30-80% is possible (in some cases to 10% or even
less). Even a reduction to 0% for a period of time is possible under certain
circumstances if the applicable average for working time loss for the STW period
is met. The STW subsidy paid from the Austrian Employment Market Authority
(AMS) to the employer in general do not have to be paid back, unless the
employer violates the applicable rules and restrictions of the STW scheme
Government measures in key jurisdictions
