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Last week, The Municipality of Sintra gave updated reports on the progress of work done by its emergency funds, which were instituted to help the most vulnerable sectors of the local economy. The two funds in question are the Municipal Business Emergency Fund and the Municipal Culture Emergency Fund.
When the first wave of the COVID-19 pandemic hit Europe, governments scrambled up to come up with quick solutions that could prop up the flailing economic life on the continent. This concern was shared not only by national but also by regional and local administrations.
The authorities in the Portuguese city of Sintra were no different in that respect. Early on they decided to implement a packet of measures that wanted to make sure that the municipality will not see a sudden rise in business closures and unemployment.
To that end, already back in April, the administration came up with an emergency fund for small enterprises, such as individuals or partnerships involved in the catering, retail trade and service industries. These firms would be able to apply for a 1500 euros grant (equal to two minimal monthly salaries) if they would commit to continuing their operations until the end of the year.
Likewise, at the beginning of June, another emergency fund was announced with the goal of helping those who are involved in cultural production, such as theatres and dance, and music academies. The first of the funds counts with a budget of 3 million euros and the second with 250 000 euros.
Now that some time has passed, the initial results are in and they show that applications for the business fund have enjoyed 58% approval rate. That means that 1 225 500.00 euros have already been allocated to 817 beneficiaries. As for the cultural sector, 15 out of 26 applicants have been approved, receiving a total of 122 000 euros as a result.
What are the reasons for that and are there any possible solutions for that problem?
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