Situation of entrepreneurs on initial funding “starttiraha” to get easier – initial funding to cover income in state of emergency; preparations being made for lengthening duration
There are plans for easements to the financial situation of entrepreneurs who receive initial funding (starttiraha). Preparations are also being made to extend the duration of the funding.
From 17 April 2020, entrepreneurs who receive initial funding may also receive the funding for the days when they cannot work in their businesses because of the coronavirus epidemic.
The Finnish government approved a temporary amendment to the Decree on Public Labour and Business Services on 16 April.
Unlike other entrepreneurs affected by coronavirus, entrepreneurs on initial funding are not entitled to unemployment benefit. Now, their livelihood is being secured through initial funding, even if they temporarily cannot run their businesses or there is less work to do in their companies.
If initial funding recipients can run their businesses some days a week, even if coronavirus means there is not enough work to do every day, then they will receive initial funding for the days on which they cannot work in their businesses.
The Decree makes it possible to secure the livelihoods of entrepreneurs on initial funding in a situation with broad impacts for society, businesses and individuals which business owners could not have predicted when they started out.
Harri Hellstén, Labour Market Affairs Manager at Suomen Yrittäjät, says, “This is extremely important and will help entrepreneurs on initial funding.”
The amended Decree entered into force on 17 April 2020 and is in force until 30 June 2020. It will be applied to initial funding paid between 16 March and 30 June 2020. The KEHA Centre will inform entrepreneurs on initial funding about the change.
In addition, the Ministry of Employment and the Economy is preparing a bill on extending the maximum duration of initial funding.
The intention is to extend it from 12 months to 18 because of coronavirus. The amendment would guarantee entrepreneurs on initial funding the opportunity to start up and establish their business operations, regardless of the temporary weakening of operating conditions caused by the coronavirus epidemic.
The bill on extending the duration of initial funding is intended to be enacted as soon as possible and would be in force until 30 June 2021.
Editorial staff
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