Publication date: 30.05.2024
Legal regulation of business support and assistance in the economic crisis
Economic crises affect businesses in many ways, creating financial difficulties and challenges for entrepreneurs. To support business in times of crisis, governments and international organizations develop various legal mechanisms aimed at stabilizing the economy, preserving jobs and ensuring the viability of enterprises. Let's consider the main aspects of legal regulation of business support and assistance in times of economic crisis.
Key business support measures
Financial support
Government subsidies and grants
Governments provide subsidies and grants to support small and medium-sized businesses (SMEs):
- Direct subsidies: Cash assistance to cover operating costs such as rent, wages, and utilities.
- Development grants: Financial support for investments in business modernization, innovation and expansion.
Credit programs
State and international financial institutions provide loans with favorable terms:
- Loans with low interest rates: Reduced interest rates to reduce the financial burden on businesses.
- Guarantee programs: State guarantees to secure loans, allowing businesses to obtain financing even in the absence of sufficient collateral assets. You may be interested in the following articles: legal advice, legal advice, analysis of documents, legal analysis of the situation, written advice, verification of documents by a lawyer, lawyers documents, online legal advice, online lawyer, legal opinion, legal opinion of a lawyer, lawyer online.
Tax measures
Tax holidays
Temporary tax exemptions or tax rate reductions for businesses affected by the economic crisis.
Deferred tax payments
Possibility to defer tax payments for a certain period without penalties.
Regulatory measures
Simplification of regulatory requirements
Simplification of procedures for obtaining licenses, permits and other regulatory documents to reduce the administrative burden on business.
Changes in labor legislation
Introduce flexible working conditions, such as reduced working hours or remote work, to preserve jobs and maintain employment.
Legal regulation in Ukraine
The Law of Ukraine "On State Support of Small and Medium-Sized Enterprises"
The Law defines the basic principles of state support for SMEs, including:
- Financial support: Providing loans, subsidies, and grants.
- Information support: Consultations, trainings and information services for entrepreneurs.
- Regulatory support: Simplifying registration procedures and reducing regulatory pressure.
The Law of Ukraine "On Prevention of Financial Catastrophe and Creation of Preconditions for Economic Growth in Ukraine"
The law provides for financial and regulatory measures to stabilize the economy in times of crisis:
- Tax measures: Deferral and reduction of tax payments.
- Financial support: Providing financial resources to support businesses and stimulate investment.
International support programs
Programs of the International Monetary Fund (IMF)
The IMF provides financial assistance to countries affected by economic crises, including:
- Loans to support the balance of payments: Financial resources to stabilize the national currency and support the economy.
- Technical assistance: Advice and recommendations on economic reforms.
