New measures against the effects of coronavirus in companies

From Hispanic Entrepreneurs we review the new measures against the effects of coronavirus in companies Chilean. The situation they have been experiencing since the end of last year is complicated and uncertainty has gripped them, especially the smallest. Here we tell you about some actions that are being applied to help them overcome this scenario.

Complicated forecast for the country's economy

First were the protests last October that created a complicated picture for the Chilean economy. Even without overcoming the consequences of the protests, the coronavirus came as a new threat.

The Central Bank had predicted that the Gross Domestic Product (GDP) would grow 2,5% in 2019, but after the social outbreak it barely reached 1,1%. And for this year a new contraction is expected, estimated at 2,5%.

Companies closed and declines in sales are just some of the consequences they must face. With quarantines and non-staples closed, it is difficult for them to begin to recover.

Therefore, it is necessary to rethink the way of doing business, without neglecting the support of the State and other organizations.

Measures against the effects of coronavirus in companies

Despite the fact that the forecast for the coming months is complicated, companies can still take actions to overcome them by reducing the impact of the coronavirus. To help them overcome these difficulties, certain measures have been taken to which they can add.

Among them we can mention the line of credit announced by the Government of Chile, tax relief and the launch of All x SMEs SERCOTEC in conjunction with CORFO. With all of them, the aim is to alleviate the situation that the companies are going through and provide them with facilities to continue operating.

More details about these below:

COVID-19 line of credit

As part of economic measures to alleviate the effect of the pandemic on companies, the Government of Chile recently announced COVID-19 lines of credit for working capital. They are focused on small and medium-sized companies, but will be accessible by entrepreneurs who require it.

The loans will be guaranteed by the State and with them it is sought to facilitate the conditions that banks impose on companies seeking to access capital.

Financing will be up to US $ 24.000 million and the credits will be available until September 30.

The amount of the credit lines will be equivalent to three months sales. In addition, they will have 6 months of grace and up to 48 months to pay.

Another of the facilities that SMEs that request the credit line will receive is that previous credits will be postponed for at least 6 months. With these new measures against the effects of the coronavirus on companies, they receive support to face the crisis at this difficult time.

Tax facilities

Among the measures that were launched there are also a number of tax relief for Chilean companies. Among these we can mention the following:

• Postponement of VAT payment for three months to companies with sales below US $ 11,5 million per year.
• The payment of Income Tax for SMEs was deferred.
• The payment of contributions to companies with sales below 350.000 UF was also deferred.
• The payment of debts to state providers is accelerated.

Throwing of All x SMEs

All x SMEs It is a platform created by SERCOTEC and CORFO with the aim of connecting SMEs with consumers.

Following the health emergency, most physical stores remain closed, so sales have fallen. A problem that has deepened since the social outbreak last October.

SMEs who want to promote themselves through the platform should only upload a video talking about their venture. They also have the opportunity to promote their products and services.

The service is free and the platform is easy to use. The video should last 60 seconds and on the same website there is a tutorial with instructions for the entire process. After sending the audiovisual, it will be published within the next 72 hours.

In addition to giving visibility to SMEs, training courses are also offered and the creation of entrepreneurial networks is encouraged.

The platform aims to help SMEs to digitize their business and take advantage of the increased internet sales.

On the other hand, consumers will find in one place the products and services they are looking for. The videos of SMEs are divided into 14 different categories that include tourism, crafts, accessories, toys, clothing and footwear, gourmet and drinks, among others.

Through these measures against the effects of the coronavirus in companies, they are given support to face the crisis. The purpose is to take action now to reduce the impact on the economy.