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Until June the 19th, tenants of Estonian shopping centres can apply for support for the rent of June from the Enterprise Estonia

On 04, 06 2020 | No Comments | In Uncategorized | By Nadezda Paist

These lessees of shopping centres, who were during the emergency situation obliged to temporarily close their doors as a result of the order of the government, can apply for financial support for the rent of June via the Enterprise Estonia’s e-environment until the 19th of June (4:00 PM). The lessee may request support once for each of its establishments (place of business in any shopping centre, e.g shop or restaurant) by submitting one application for all of them. Those trading or service companies that manage children’s playrooms located outside shopping centres, can apply as well.

The main prerequisite for being eligible for the support is that the lessor offers a decrease in rent for the month of June in comparison with the rent for February. Therefore, the lessees whose negotiations with their lessor as still on-going, should reach a conclusion before the 19th of June. Additionally, other more important prerequisites for the support are that (i) the total turnover for March and April is at least 30% lower than the total turnover for the same time period in 2019, (ii) as of the end of last year, the applicant cannot be an undertaking in difficulty, and (iii) the applicant cannot have national tax arrears as of the 12th of March nor any overdue debts to the Enterprise Estonia as of the moment of submitting the application.

The amount of the financial support from the state is up to 25% of the contractual rent (without the VAT). Should the discount that the lessor offers be less than 25%, then the size of the support from the state is equal to the lessor’s discount. In any case, the lessee must pay for at least 25% of the rent – hence, if the lessor offers a larger discount than 50%, then the support from the state is less than 25% as the lessee is obliged to pay for 25% of the rent in order to be eligible for the support. In any case, support is not given for the establishments for which the amount of the support would be less than 100 euros or if the lessor’s discount for this establishment is so large, that the lessee must pay less than 25% of the contractual rent.

The applications for support can be filed at any time until the deadline – support will be granted to all eligible applicants and not on first come, first serve basis. Should the sum of all eligible application be larger than the budget of the measure (4 million euros), then all applications will be fulfilled proportionally. Nevertheless, the application should not be left to the last moment, because (i) the e-environment of the Enterprise Estonia enables only a certain number of people to simultaneously file their applications, and (ii) problems concerning the content of the application, authorisations or the technical side of the e-environment may arise.

If you intend to apply for support from the Enterprise Estonia, feel free to contact us and we will help you combat any possible problems.

Minni-Triin Park

Gerda Raag