How much can your enterprise claim in grants?

The following information explains how the scheme works and how much in grants your enterprise can claim.

In order for enterprises to be entitled to receive grants, they must fulfil certain criteria. For example, enterprises must have recorded a decrease in turnover of at least 30% mainly as a result of the coronavirus pandemic. The grant amount is determined based on the enterprise’s fixed, unavoidable costs.

The amount of grant that an enterprise can receive depends on the decrease in turnover that it has experienced due to the coronavirus pandemic.

For the period for which the enterprise is seeking a grant, you must provide details of income from sales of goods delivered and services provided, even if these have not yet been invoiced. Sales of goods and services must be within sectors/industries which are covered by the scheme in Norway.

Turnover also includes income from government subsidy schemes as compensation for lost income, and income safeguards provided in connection with the coronavirus pandemic.

You must also declare gifts/donations from private individuals which collectively amount to NOK 3,000 or more during the grant period.

For periods other than the grant period, you need only declare turnover from sales of goods delivered and services provided.

Income or return on capital, property and other financial assets must not be included. However, rental income from property must still be included.

NB – in the event of a low calculated grant

Calculated grants amounting to less than NOK 5,000 for the period will not be awarded, and no reimbursement will be paid for costs for an accountant/auditor according to the rules stipulated in the Regulation.

The compensation scheme stipulates that you can be reimbursed for 80% of the cost for an auditor/accountant, limited to a maximum of NOK 10,000 per period for enterprises which are awarded a grant.

If the calculated grant is low, you should consider whether it would be better for the enterprise to hire an accountant/auditor to submit an application. This will mean you will have to spend some time documenting what the accountant/auditor asks for in order to verify the application. This is particularly true if you have not already hired an accountancy firm to prepare your accounts in the first place.

Example:

Example

The decrease in turnover expressed as a percentage is calculated as follows: (decrease in turnover in NOK/turnover during the comparative period) x100

Enterprise A recorded the following turnover in September/October

Comparative period                     Grant period

September 2019:  40,000          September 2020:  35,000

October 2019:        50,000          October 2020:      40,000

Total Sep/Oct:       90,000                                          75,000

  • Decrease in turnover in September/October (90,000 – 75,000) = 15,000
  • Decrease in turnover in percent September/October: (15,000/90,000) x 100 = 16.67%

The decrease in turnover for September/October 2020 is too small to be eligible for a grant.

 

Enterprise A recorded the following turnover in November/December

Comparative period                     Grant period

November 2019:  60,000          November 2020:  35,000

December 2019:   55,000          December 2020:  30,000

Total Nov/Dec:   115,000                                           65,000

Decrease in turnover November/December: (115,000 – 65,000) = 50,000

Decrease in turnover in percent November/December: (50,000 / 115,000) x 100 = 43.48%

The enterprise can apply for support for November/December 2020.

To calculate the grant amount for an application period, you must know:

  • Decrease in turnover in % for the period converted to a decimal number
  • The enterprise’s fixed and unavoidable costs during the application period
  • The adjustment factor.

From example 1, we can see that the enterprise experienced a decrease in turnover of 43.48% in November/December 2020.

  • Let’s assume that the fixed, unavoidable costs for the period covered by the application are NOK 70,000.
  • The adjustment factor is stipulated in the Regulation on the support scheme and amounts to 0.85 for the period covered by the application.

Here you will find a list of what is included in fixed, unavoidable costs.

Calculating the grant:

  • (Fixed unavoidable costs * Decrease in percent (decimal number) * adjustment factor for the grant period
  • I.e.: 70,000×0.4348×0.85 = NOK 25,870 in support for November/December 2020.
  • The grant cannot amount to more than the decrease in turnover measured in NOK for the period.
  • Grants calculated as amounting to less than NOK 5,000 per grant period will not be paid out.
  • If an enterprise has recorded a deficit, the grant may be reduced depending on the magnitude of the deficit, determined according to a special method.
  • Grants calculated as amounting to up to NOK 60 million per period will be paid out in full. In the case of calculated grants exceeding this amount, the amount above NOK 60 million will be reduced by a factor of 0.5
  • The maximum grant per period is NOK 160 million.

Do you have any questions?