The application for each period must be verified by an authorised accountant or auditor before it submitted. You must therefore contact an accountant or auditor as soon as possible if you do not already have one.
The person signing the application must be registered with a key role in the Central Register of Legal Entities. Make any necessary changes as soon as possible if this has not been updated.
In the case of sole proprietorships (ENK), the following may submit an application on behalf of the enterprise:
- owner/proprietor
In the case of other organisational forms, one of the following may submit an application on behalf of the enterprise:
- general manager
- chair of the board
- controlling shipowner in a shipping partnership
- partner with joint liability
- partner with full liability
- partner with unlimited liability in a limited partnership
- Norwegian representative of a foreign entity
The same rules apply when a group of companies submitsa joint application.
When you fill in the application form, you will be asked to state the enterprise’s turnover and costs. You will also be asked to state the calculated deficit for the grant period for which you are applying, as well as whether the enterprise is covered by the definition of small, medium or large enterprise.
If you apply for compensation for lost stock (applies to the period December 2021 and January 2022), you will be asked to state the deficit in NOK. To apply for compensation for lost stock, you must have been closed or ordered to stop serving by the authorities.
If the enterprise is medium or large, you will also be asked whether the enterprise was experiencing financial difficulties before the COVID-19 pandemic.
Repayment if a profit is made
If the profit made during the financial year exceeds NOK 50,000, you will receive a repayment demand from the grant authority. Separate rules have been issued concerning the calculation of profits in connection with repayment demands.
Before applying for a grant, you should consider whether your enterprise will make a profit of more than NOK 50,000 during the financial year.
Before you start filling in the application form, you should find the following:
- Figures for the period for which you are applying for a grant:
- Fixed, unavoidable costs for the period for which you are seeking a grant
- Turnover for the period for which you are seeking a grant
- Calculated deficit for the period
- If you apply for compensation for lost stock, you must calculate the deficit
- Figures for the comparative period:
- Turnover for the corresponding period two years previously.
If the enterprise was established less than two years before the period for which a grant is being sought, you must use the average of the turnover for January and February 2020 as a basis for comparison. For the application periods January and February 2022, this applies to enterprises established less than three years before the period for which a grant is being sought. The same applies to enterprises that were established, but had no turnover during the relevant comparison period.
You must also prepare accrued accounts for the grant period which show how the calculated deficit for the period was determined. The calculated deficit must be included in the application.
Why do I need to state whether the enterprise is defined as small, medium or large?
Compensation for reimbursement of fixed costs is regarded as state aid. The state aid rules that currently form the basis for the scheme distinguish between small, medium and large enterprises. The support rate is highest for small enterprises. It is therefore important to be aware of the criteria which determine when an enterprise can be considered to be a small enterprise. A number of additional requirements have also been introduced according to which applicants which are considered to be medium or large enterprises must not have been experiencing financial difficulties before the coronavirus pandemic.
In order to determine whether the enterprise is defined as small, medium or large, you must have figures from the last approved annual accounts showing the sales revenue or balance sheet total, as well as the average number of employees in the enterprise. You must also be able to document the same for companies that have an ownership share in your enterprise above a certain size, or in which your enterprise has ownership interests. If the enterprise is part of a group, all the enterprises in the group must be included.
The figures for fixed unavoidable costs that we will ask for are as follows:
- rental of commercial premises
- lighting and heating
- refuse collection, water, sewerage, cleaning, etc.
- rental of equipment, fixtures and fittings, vehicles, etc.
- accounting, audit fees, consultancy, etc.
- electronic communication, postage, etc.
- vehicle insurance and taxes
- deductible subscriptions
- insurance premiums
- net interest expenses
- any costs concerning animal husbandry, feed and veterinary expenses
- government-imposed supervision and control
- membership fees to regional tourist boards or destination marketing collaborations
- central fees paid by taxi enterprises to taxi depots
You can read more about fixed, unavoidable costs here and compensation for lost stock here.
You must also decide whether the costs in their entirety would qualify for a grant, or whether they need to be adjusted. For example, you can only enter the component of the cost that is attributable to the period for which you are applying for a grant. You must also exclude variable components of costs, such as the component of rent that is attributable to revenue. Here are a number of examples of the adjustment and treatment of fixed, unavoidable costs.
The turnover figures we will ask for are as follows:
- Actual turnover for the period for which you are applying for a grant
- Turnover for the corresponding period two years previously (does not apply to enterprises established later)
- The average turnover for January and February 2020 (applies to enterprises registered less than a year before the period for which a grant is sought. For the grant periods January and February 2022, this applies to enterprises registered less than three years before the period for which a grant is being sought)
By ‘turnover’, we mean income from sales of goods delivered and services provided by the enterprise during the period concerned, even if they have not been invoiced.
Turnover also includes income from government subsidy schemes as compensation for lost income, and income safeguards provided in connection with the coronavirus pandemic. However, this does not apply to grants from the compensation schemes for enterprises with a large decrease in turnover, or unspecified aid from the municipalities that has been granted in accordance with the regulations concerning de minimis aid.
You must only enter income that is taxable in Norway. Income or return on capital, property and other financial assets must not be included. Rental income from property must however be included. VAT and excise duties attributable to sales income are not considered to be income.
It is the turnover for the period for which you are seeking a grant, i.e. the value of goods delivered and services provided (including profit), which must be declared. This applies regardless of how the sales are treated in terms of accounting. For construction contracts, this means that the turnover must be accrued according to the ongoing settlement method with profit.
What figures must be included in the deficit calculation for the grant period
To calculate the deficit for the grant period, the turnover must be deducted from the accrued costs stated below.
- salary and other personnel costs
- cost of goods
- change in inventory of semi-finished and finished goods
- depreciation of fixed assets and intangible assets
- other operating costs
- net interest expenses in accordance with Section 3-2 third paragraph, but such that the negative net interest cost must also be included
Costs must be reduced by public subsidies, compensation payments from insurance companies and other reimbursements for costs incurred during the grant period.
However, the cost of goods should not be reduced by compensation for lost stock in accordance with Section 3-6 of the Regulation. When you submit the application, compensation for lost stock will automatically be deducted from the calculated deficit when the grant is determined.
The turnover which is to be deducted from costs includes:
- the turnover in accordance with the provision of Section 2-2 of the Regulation (the same figure that was used as a basis for calculating the decrease in turnover))
- other financial compensation
- other public subsidies, such as unspecified aid from municipalities that is provided in accordance with the regulations concerning de minimis aid.
- compensation payments from insurance policies.
Grants under this scheme should not be included.
You can find out more about deficits during the grant period here.
Financial difficulties
If an enterprise is defined as medium or large, it must not have been experiencing financial difficulties before the coronavirus pandemic. To make this assessment for a medium enterprise, you will need the annual accounts from the last financial year with a balance sheet date which falls before 1 March 2020. If the accounts show that total equity accounts for less than half of the enterprise’s premium, the enterprise will not be eligible to apply for grants.
In the case of large enterprises, you will need figures from the annual accounts for the more recent two financial years with a balance sheet date falling before 1 March 2020. If the accounts show that total debt amounts to more than 7.5 times total equity and that the ratio between EBITDA (gross operating profit, i.e. earnings before interest, tax, depreciation and amortisation) and net interest expenses is greater than 1, the enterprise will not be eligible to apply for grants.
How the application process works
- Check whether the enterprise is eligible to apply for grants
In the application portal, we will help you to determine whether the enterprise is eligible to apply for grants by asking you a few questions. - Find the necessary information
Amongst other things, you will need to find the enterprise’s turnover figures and fixed, unavoidable costs. - Send us the application
You fill in and sign the application form. If your accountant or auditor fills in the application form on your behalf, you will receive the application for signing. - Verification of the application
An authorised accountant or auditor verifies the application.
After the application has been submitted: - We will respond as soon as we can
You will normally receive a response to the application immediately, but it may take a little longer in some cases. You will receive the response in the enterprise’s inbox in Altinn. If the application is approved, the funds will be deposited in the specified account within 2-3 working days. - For groups: If you are applying collectively as a group
Prior to payment, we will contact you to request an overview of the enterprises that are part of the group and the allocation of the grant between the enterprises in the group. - Repayment of grants
An enterprise will receive a demand for repayment of the grant for grant periods from November 2021 onwards if it makes a profit of at least NOK 50,000 during the financial year to which the grant period belongs, or if it carries out distributions in the form of dividends, etc. after the grant has been paid.