Coronavirus COVID-19

International guide | Navigating government COVID-19 support measures

Published on 18th May 2020

Although governments are beginning tentatively to ease lockdown restrictions, for many, it will take some time before trading returns to anything approaching normal levels and employees temporarily not needed can be brought back into the workforce. In the meantime, there remains a need for finance to provide working capital.


In this international guide, our experts provide an overview of the government support measures that are available to businesses, across a number of jurisdictions, in relation to: finance and funding; and people and workforces.

Finance and funding

Recognising that for many businesses, the most pressing issue in the short term is the availability of working capital, a common response by governments is to establish schemes to unlock finance that can be repaid when trading resumes. Typically, the state will guarantee a large proportion of loans – in France, for example, the government guarantees 90% of the loan for smaller businesses and 80% for larger businesses; the Spanish scheme guarantees up to 80% of loans to SMEs and the self-employed, while for other businesses this is 70% for new loans and 60% for the renewal of existing facilities.

The UK scheme takes the distinction between different sizes of business a step further with five different schemes, each aimed at a different segment of the market and coming with different terms and conditions. The points of difference include the size of the loan that can be applied for, the level of government guarantee (up to 100% for the smallest businesses), and whether the loan attracts any fees or interest during the first 12 months.

As well as support with financing, businesses can benefit from tax concessions. In some countries, such as the Netherlands, rules have been relaxed around the deferral of taxes (including income tax, corporation tax, VAT and wage taxes), and the interest accruing on payment defaults has been lowered (from 4% to 0.01%). Similarly, Germany has focussed its tax relief on the short-term deferral of tax payments and pre-payments, and temporary forbearance by tax authorities.

With the availability, eligibility and terms varying not just by country but in some cases (such as Belgium, Germany and Spain) between different regions within the country, those with operations spanning multiple territories will need to consider which schemes they can, and should, take advantage of.

Read more on finance and funding.

Interested in hearing more from Osborne Clarke?

* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

Connect with one of our experts

Interested in hearing more from Osborne Clarke?

Related articles