SUPPORT TO BUSINESSES
Initial support to businesses for the remainder of 2020.
Phase 1: Tourism Mitigation Fund
Public Law 21-211 set up the Tourism Mitigation Fund.
Key sections:
(3) Tourism sector businesses in the Federated States of Micronesia seeking relief from the Tourism Sector Mitigation Fund must show tax returns from the previous year in order to establish their losses claimed under this fund. The President shall issue regulations for equitable compensation for affected businesses, including a possible cap on the amount of a valid claim.
(4) For the purposes of this fund tourism sector businesses shall include hotel operators, car rentals, tour operators, resorts, or any other tourist specific business not mentioned above.
Monthly Economic Stimulus for a business for April onwards is calculated as follows:
An amount equal to salaries & wages paid for the month
plus
An amount equal to electricity & water utilities paid
Equals
Economic Stimulus check
The business will also be provided with Debt Relief – interest payments on business loans will be paid to banks on behalf of affected businesses
Phase 2: Expansion to Other Sectors
A similar package to Phase 1 but extended to cover other sectors experiencing significant hardship
Economic Recovery & Relief Fund Program Business Eligibility
| Eligible Businesses Including | Non Eligible Businesses |
|---|---|
| Exporters | Constructions |
| Apartments/Rentals | Fuel Companies/Gas Stations |
| Taxi Companies | Laundry Mat |
| LP Gas Distribution | Private School |
| Cinemas | Retails Stores |
| Bars | Wholesalers |
| Beauty Salons | Banking Institutions |
| Water Bottling | Law Firms |
| Others to be Determined | Pharmacies |
| Credit Unions | |
| Printing Shops |