Hiring Subsidies and SME Loans Act 651
Recognising that the Kodiak Republic's poor economic conditions do not encourage expansion and hiring, this act targets improving existing structures to provide loans to SMEs that make up 99% of businesses. This act further intends to introduce, as soon as possible, a hiring subsidy to assist and encourage hiring in the short-term while the nation works towards economic recovery and enacts further recovery programs.
PASSED on March 11, 2023 by a vote of 15 Aye. 3 Nay., and 4 abstaining.
Article 1: Definitions
- 1.1 - For the purpose of this act the following definitions apply for business sizes:
- 1.1.1 - Micro business or enterprise - defined as a business employing 1 to 9 employees.
- 1.1.2 - Small business - defined as a business employing 10 to 49 employees
- 1.1.3 - Medium business - defined as a business employing 50 to 250 employees
- 1.1.4 - Large businesses - defined as any business employing more than 250 employees.
- 1.5 - SMEs - Small to medium enterprises/businesses, including micro-enterprises.
Article 2: Business Loan Extensions
- 2.1 - Renames `The Business Competition Act (Inter)` to `The Business Competition Act (651)`
- 2.2 - Amends Article 2, 2.1.1 to 2.1.2 in `The Business Competition Act (651)` as per clause 2.2.1 to 2.2.3 below.
- 2.2.1 - Authorizes Government loans for medium businesses, with a threshold of 5,000,000 florins annual income in the last financial year.
- 2.2.2 - Authorizes Government loans for small businesses, with a threshold of 1,000,000 florins annual income in the last financial year.
- 2.2.3 - Authorizes Government loans for start-up or micro businesses with less than 100,000 florins of starting capital.
Article 3 - Short-term hiring subsidies for SMEs
- 3.1 - Authorises the Ministry of Commerce and Labour to manage, review, audit applications, and grant hiring subsidies.
- 3.2 - Hiring subsidies are short-term and will be enacted for a period of 3 years after passage in the General Assembly.
- 3.3 - The Ministry of Commerce and Labour will be allocated 10 billion florins per year as subsidy funding.
- 3.4 - Wage subsidies will be provided to SMEs as defined in Article 1 and based on reported average income over the past 5 years, as of the current financial year.
- 3.4.1 - SMEs with a reported average loss of up to 20% may apply for a subsidy of 10,000 florins per new hire.
- 3.4.2 - SMEs with a reported average loss of greater than 20% may apply for a subsidy of 20,000 florins per new hire.
- 3.5 - Hiring subsidies will only apply if an employee will work on average 20 or more hours per week.
- 3.6 - Businesses may not release an employee from employment and rehire the same employee, that is, the hiring subsidy must go towards genuine new hires.
Proposed by Chancellor Charlotte Groves
Additional contributors: Erich Crysler, John Edwards