COVID-19 aid measures

The government has decided to support people and businesses in the sectors affected by the limitations of COVID-19. In order to receive the aid, an application must be submitted to the relevant authority.

Unemployment Insurance Fund Wage subsidy

www.tootukassa.ee

March and April 2021, all of Estonia

Employees of a company, non-profit association, foundation or a self-employed person which has suffered significantly from the restrictions, and for whom their employer cannot guarantee work in the agreed amount or whose salary has been reduced.

The employee had to be registered for employment no later than 1.01.2021 and the employment relationship must be ongoing. An employee who has been on sick leave or unpaid leave for the entire calendar month for which the subsidy is claimed shall not receive the subsidy.

The Unemployment Insurance Fund pays the employee a compensation of 60% of the employee's average monthly wage in a month, but not more than 1,000 euros (gross). Before applying for the subsidy, the employer is obliged to pay the employee a wage of at least 200 euros (gross) per month for which they are asking the subsidy for.

The compensation paid by the Unemployment Insurance Fund and the wage paid by the employer guarantee the full-time employee at least the minimum wage, i.e. 584 euros.

Self-employed persons whose business income in 2020 was at least 50% lower than in 2019 can also apply for the subsidy.

In the case of the self-employed person, the amount of the subsidy is 584 euros.

Receiving other types of support does not exclude from receiving this subsidy.

An employer can apply for a wage subsidy for their employees if: in the calendar month for which the wage subsidy is being applied for their turnover or income has decreased by at least 50% compared to the average monthly turnover or income for the period from December 2019 to February 2020 or to the average monthly turnover or income for the period from July 2020 to December 2020.


 

An employer is not allowed to make employees redundant if they have received the wage subsidy during the calendar month for which the subsidy is applied for, nor during the two following calendar months. A self-employed person is similarly not allowed to suspend or terminate their business.

Applications for wage subsidy for March can be submitted from 1st April to 30th April 2021 and for April from 1st May to 31st May 2021 only at the e-töötukassa (the Unemployment Insurance Fund online environment).

  • In April (for March)
  • In May (for April)
  • It is paid to the employee’s bank account.

Ministry of Rural Affairs / Rural Development Foundation Surety for a loan 

www.mes.ee/covid-19-kaendus

Relieving the sudden liquidity shortage caused by the COVID-19 outbreak for small and medium business operators (including micro-business operators) and large business operators.

Small and medium business operators (including micro-business operators) and large business operators:

  • primary agricultural producers;
  • processors and/or distributors of agricultural products;
  • business operators in the fishing and aquaculture sectors;
  • business operators in the food industry;
  • business operators in rural economy (incl. accommodation, catering etc.);
  • savings and loan associations that are in the Union of Estonian Savings and Loan Associations;
  • foundations;
  • non-profit associations.

The maximum surety amount for a business operator is 5 million euros. But not more than:

  • 90% in proportion of the basic amount of the loan that the surety is for; or
  • 35% of the fixed basic amount of the loan that the surety is for.

The amount of the surety decreases in proportion to the decrease in the basic amount of the loan.

The loan will not be granted to a business operator in the following economic sectors / fields of activities:

  • tobacco and distilled alcoholic beverages (excluding spirits produced for industrial purposes) and the production and trade of products related to them;
  • production and trade of arms and ammunition;
  • casinos and equivalent establishments;
  • research and development or technical applications in certain fields (see more at https://rex.rk.ee/proxy/40b6de77/https/www.mes.ee/covid-19-laen
  • to finance research and development or technical applications in the life sciences sector relating to human cloning for research or medical purposes or to genetically modified organisms (GMOs).

The loan applicant is registered on the basis of the legislation of the Republic of Estonia.

As of 31.12.2019, the loan applicant was not a business in difficulty (within the meaning of the General Block Exemption Regulation); a business operator who is not in difficulty and/or a business operator who was not in difficulty on 31st December 2019 but which became in difficulty as a result of the COVID-19 outbreak or after the outbreak.

None of the owners of the loan applicant are business operators registered in a low tax rate territory within the meaning of the Income Tax Act.

There are no other circumstances that limit or exclude the recipient of the loan from the surety.

Until 30.06.2021

According to the application. The surety lasts for a maximum of 6 years.

Ministry of Rural Affairs / Rural Development Foundation Loan 

www.mes.ee/covid-19-laen

Relieving the sudden liquidity shortage caused by the COVID-19 outbreak for small and medium business operators (including micro-business operators). In the case of bio-economy business operators, entire Estonia.


 

The target region is identified by the place of business of the business operator.

Micro-business operators or small and medium business operators, whose area of activity is primary production of agricultural products and/or processing agricultural and/or fishery and/or aquacultural products, whose sales have been directly affected due to the restrictions set by the Government of the Republic, which have constrained the normal activities of the tourism sector, accommodation sector and catering sector within Estonia and outside of Estonia.

Micro-business operators: 5000 - 25 000.

Small and medium business operators: 5000 - 200 000. 


 

Together with a credit institution or a financial institution, the maximum loan amount issued by Rural Development Foundation is 2,000,000 euros.

The loan will not be granted to a business operator in the following economic sectors / fields of activities:

  • tobacco and distilled alcoholic beverages (excluding spirits produced for industrial purposes) and the production and trade of products related to them;
  • production and trade of arms and ammunition;
  • casinos and equivalent establishments;
  • research and development or technical applications in certain fields (see more at https://rex.rk.ee/proxy/40b6de77/https/www.mes.ee/covid-19-laen
  • to finance research and development or technical applications in the life sciences sector relating to human cloning for research or medical purposes or to genetically modified organisms (GMOs).
  • The loan applicant is registered on the basis of the legislation of the Republic of Estonia.
  • As of 31.12.2019, the loan applicant was not a business in difficulty.
  • It is not possible for the applicant to involve additional financial funds from other sources or it would be unreasonably expensive.
  • As of 12.03.2020, the applicant has no state tax debts or they have been paid or staggered by the date of submission of the application and the applicant has fulfilled the obligation to submit tax returns and annual reports by the time of submission of the application.
  • The members and owners of the loan applicant's management body (or bodies) are reliable and competent.
  • None of the owners of the loan applicant are business operators registered in a low tax rate territory within the meaning of the Income Tax Act.
  • There are no other circumstances that limit or exclude the loan applicant from getting the loan.

Until 30.06.2021

Within 35 working days from receiving the standard format loan application and all required additional documents. 

Ministry of Rural Affairs / Rural Development Foundation Financial leasing of agricultural land

www.mes.ee/pollumaa-ja-kapitalirent

Improving access to capital for small and medium business operators (including micro-business operators) across Estonia.

  • Business operators whose area of activity is primary production of agricultural products. 
  • Business operators who supply, market and reprocess everything that is under the control of primary agricultural producers.
  • Business operators in rural economy (rural tourism, etc.).

5,000 – 1,000,000 euros.

  • A financial lease cannot be granted to a business operator who is considered to be in difficulty according to the meaning stated in Point 20 of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty.  
  • If a financial lease involves the granting of de minimis aid, then granting the financial lease and the amount of the lease depend on the de minimis aid thresholds and rules (including cumulation rules). 
  • The supervisory board of the foundation may establish restrictions on granting a financial lease based on territory, field of activity or some other factor.

The guarantee must be immovable property containing predominantly agricultural land, not less than 100% of the main part of the financial lease.

Until the funds run out.

According to the application. The lease lasts for a maximum of 6 years.

Ministry of Economic Affairs and Communications / Enterprise Estonia 

https://www.eas.ee/covid-19-toetused/ 

eas.ee

March–April 2021, all over Estonia.

  • Accommodation business operators, spas and water parks
  • Catering business operators
  • Travel business operators
  • Organizers of conferences and fairs
  • Tourism service providers
  • Business operators offering other ground transport for passengers
  • Retail business operators
  • Regular services operators

Accommodation business operators, spas and water parks, catering business operators, travel business operators, organizers of conferences and fairs, business operators offering ground transport, retail business operators: the amount of support for a legal person is up to 600,000 euros depending on the amount of loss in the turnover and on the labour costs they paid for February 2021, support for a self-employed person is 1168 euros. 

Support for a tourism service provider: The amount of support for a legal person is 5,000 euros.
The amount of support for a self-employed person is 1,168 euros.

The amount of support for the regular services operator is up to 1,800,000 euros.

Receiving support previously is not a restriction for applying for support.

  • Accommodation business operators, spas and water parks 18.05.2021-27.05.2021
  • Catering business operators 18.05.2021-27.05.2021
  • Travel business operators 18.05.2021-27.05.2021
  • Organizers of conferences and fairs 18.05.2021-27.05.2021
  • Tourism service providers 18.05.2021- 27.05.2021
  • Business operators offering other ground transport for passengers 18.05.2021- 27.05.2021
  • Retail business operators 17.05.2021-26.05.2021
  • Regular services operators: the application is presumed to open in the second half of May after receiving the state aid permit. 18.05.2021-27.05.2021

Will be specified.

Last updated: 13.05.2021