Hardship fund topped up by CHF 80 million

The canton of Zug is topping up the funds for companies that are particularly affected by the corona pandemic. The cantonal council approved the updated loan on Thursday, and gave the government a free hand for more non-repayable contributions.

The canton of Zug is thereby participating in the hardship programme of the Confederation. There was no resistance in the Council debate. The Zug government council (Regierungsrat) originally estimated that CHF 44 million should be made available as A-fonds-perdu (non-repayable loan) contributions and loans for companies in need.

With the increase of the Federal contribution to CHF 1.5 billion, the framework loan for aid in the canton of Zug also increased to CHF 66.1 million, of which CHF 16.3 million comes from the federal government. This total amount was discussed by the Cantonal Council (Kantonsrat) in a first reading.

At the second reading, the government requested an additional CHF 15 million for those companies hit by recent measures taken to combat the pandemic. This includes the gastronomy branch, for example, which are losing their evening business due to the prescribed closure at 7 p.m., said Finance Director Heinz Tännler (SVP).

He rejected applications from the FDP and SP/ALG calling for an extension of the cantonal contribution and a lower threshold for the drop in sales, said Heinz Tännler. The requests were well-intentioned, but went a step too far. In view of the recent increase in the cantonal contribution, the two groups withdrew their requests.

Confidence expressed
As a change from the first reading, the government wanted to set the proportion of repayable and non-repayable contributions itself, in order to be able to react quickly. This required trust, said Tännler, and the council showed this with regard to the government, also in relation to another motion.

If the Confederation increases its contribution, the Governing Council, in consultation with the State Economic Commission, may adjust the cantonal contributions on its own initiative for a limited period of time. This gives it the necessary flexibility in a volatile situation, said Heinz Tännler.

The deadline for the award of the hardship funds is the end of February. In the case of companies that cannot wait that long, the governing council can provide CHF 1.5 million from the lottery fund, but this will have to be returned to the fund later.