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/ Municipal compensation scheme to local businesses - Part 7

Local businesses that are affected by infection control measures and that meet the criteria in this call for proposals can now apply for funding. Kristiansand municipality is announcing a grant of around NOK 4 million awarded by the Ministry of Local Government and Regional Development (KDD). 

THE DEADLINE FOR APPLICATIONS WAS APRIL 21 AT 23:59.

The purpose is to compensate losses and additional costs in local businesses that have been affected by invasive infection control measures. With this, KDD follows up on the budget decision from the Storting on January 24, 2022, Inst. 199 S, and distributes a new NOK 250 million in the seventh distribution round to the municipalities.

The amount allocated by the Ministry is lower than in previous distribution rounds. The municipality has prioritized certain industries based on guidelines and the local situation so that the grants will not be very low. NHO and the trade associations have been consulted in the work.

Any residual funds from previous calls for proposals from Kristiansand Municipality can also be added and distributed as part of the support scheme. The same applies to other funds that may be allocated in an eighth distribution round if this is awarded to Kristiansand before the application deadline.
 

Period for which support can be sought 

Support for loss of turnover and increased costs related to COVID can be applied for in February 2022. For businesses that have fallen outside national covid-related support schemes, support can be applied for for loss of turnover and increased costs related to covid in 2021.
 

Eligible categories 

  1. Catering with a liquor license* 
  2. Accommodation and food service activities 
  3. Businesses that have fallen outside national Covid-related support schemes 
  4. Entertainment, amusement and recreation activities, events and congresses 
  5. Tourism 

* Category 1 includes only establishments where a maximum of 20 percent of its total turnover in 2021 was from the sale of food.  

Application forms and sets of criteria for the different categories can be found at the bottom of this page.  

 

Grants are not provided for the following: 

  • Measures that fall outside the terms of the call for proposals. 
  • Enterprises that are municipally or publicly owned and/or financed.  

 

Requirements for applicants 

The responsible applicant must be a person who can legally commit the business. Business Region Kristiansand is free to request other information and documentation that is considered relevant in the assessment of the application.   

The enterprise must have an address in Kristiansand municipality. Support is only provided for the economic activity in the enterprise that takes place in Kristiansand municipality.

If the enterprise has economic activity in several municipalities, it is a prerequisite that the applicant keeps separate accounts for branches, departments or similar in Kristiansand municipality, or that it is possible in other similar ways to separate the economic activity in Kristiansand municipality from the activities in other parts of the enterprise.

When the term "enterprises" is used in the following, it means enterprises that meet the localization and separation requirement under this section.  

Amount of the grant 

The amount of the grant will not be known until the deadline for applications has expired and calculations have been made. The amount of the grant will depend on the number of approved applications in each category and may differ between the five categories. The amount of aid cannot be higher than the loss of turnover for the period to be applied and additional costs, minus public corona aid already received for the period February 2022.For category 3 (Enterprises that have fallen outside national Covid-related support schemes), there are other assumptions that must be applied. This is described in more detail in the set of criteria for this category. 

The maximum amount of support is kr. 400.000.   

Aid amounts are adjusted according to the number of FTEs in the enterprise and are based on a threefold division: 1-5 FTEs, 6-10 and more than 10 FTEs.Aid amounts may also be differentiated between categories in terms of the size of the grant. 

Loss of revenue and additional costs 

For applicants in categories 1,2,4 and 5:
The business must show a drop in turnover for February 2022 compared to February 2020. Alternatively, the drop in turnover can be calculated by comparing the turnover in February 2022 with the average of the turnover in October 2021 and November 2021.  

For applicants in category 3:
The business must calculate a drop in turnover and additional costs due to covid in 2021 which must be confirmed by an authorized accountant or auditor. Such confirmation must be attached to the application. This is further described below in what concerns this category. Applications lacking confirmations will be rejected.  


Payment of grants 


The grant funds are paid as soon as possible after the application deadline, once the applications have been reviewed, checked, the applicant has been found eligible and the applicant has signed the necessary documents sent by the municipality.The funding is awarded through the nationally notified scheme under the Covid-19 framework, Chapter 553 item 68. More information on the notified scheme can be found here. De minimis aid may be considered for use. 


Delivery of the application 

A link to the application form can be found at the bottom of this page. To fill in the application form, you must log in to ID-porten with your bank ID. Fill in the application in line with the description. The responsible applicant must be a person who can legally commit the company.  

Kristiansand municipality practices digital first choice, all further communication will take place digitally. If the contact person/applicant has reserved against digital communication with the public sector, this will delay the process. In the application process, you can change the choice of reservation against digital communication with the public sector, and update the information under "About the applicant".  


Case management  

All applications are assessed according to the criteria for grants. Applications will be processed by Business Region Kristiansand, the business department in Kristiansand municipality after the application deadline. The criteria are the basis for the decisions. Some minor discretionary assessments may be used to find good solutions.  

 

Requirements for grant recipients 

  • Terms and conditions will be set out in the award letter.  
  • The applicant must accept the terms of the award letter and sign the acceptance letter. Acceptance must be given within seven (7) days of commitment.  
  • The scheme is trust-based, but the municipality or other relevant actors may at any time request audited documentation for all the assumptions made in the application.However, for applicants in category 3, confirmation of the basis of calculation and previous support received from an auditor or certified accountant is required.  


Application deadline and announcement 

The deadline for applications is Thursday, April 21, 2022, 23.59.

The grant scheme is announced onbusinessregionkristiansand.no, and in the municipality's social channels.  

 

Complaint  

All relevant information from the applicant must be provided before the deadline for applications. Decisions are made on the basis of the information provided by the applicant. The municipality's decision on a grant may be appealed by a party or other party with a legal interest in the case to the municipality's internal appeals board, cf. section 28, second paragraph, of the Public Administration Act. The deadline for appeal is 3 (three) weeks from notification of the decision. The complaint must be sent to post@kristiansand.kommune.no.The appeal must refer to the decision being appealed against and the change(s) requested. The appeal should be substantiated and other information relevant to the case should be mentioned. Any questions regarding the appeal can be directed to the case officer.  

With certain exceptions, the parties are entitled to see the documents in the case, cf. Sections 18 and 19 of the Public Administration Act.   

 

Questions about the scheme can be directed to Business Region Kristiansand:  

 

  • Kristian Råmunddal; tel. 47 61 01 63  
  • Ole Jacob Rynning-Tønnesen, tel. 98 84 94 00  
  • Tina Abrahamsen, tel. 90 95 43 04  
  • Stein Otto G. Daatland, tel. 99 71 18 19