Covid-19: what to remember from the business aid measures during containment

When presenting, Thursday, October 29, the measures adopted by the government to help companies whose activity will slow down due to confinement, Bruno Le Maire took a serious tone. “This confinement is a blow to all the businesses that will be closed as of tomorrow. I am thinking in particular of the 200,000 businesses that will be forced to close”, launched the Minister of the Economy.

Bruno Le Maire promised these professionals “that the economic support of the State will be even stronger than during the first confinement” decided to contain the Covid-19 pandemic. What will these measures consist of, costed by the government at 15 billion euros per month? Franceinfo recaps.

A strengthened solidarity fund for SMEs

The solidarity fund for companies will be reactivated and expanded, in order to compensate for the closures linked to the reconfinement measures, announced the Minister of the Economy Bruno Le Maire.

“All businesses and businesses that will be closed by administrative decision may receive compensation of up to 10,000 euros. This will no longer concern businesses up to 10, but up to 50 employees”, said Bruno Le Maire.

This aid may also apply to businesses which do not close, but which “suffer a loss of turnover of at least 50%”, specified the minister, taking the example of hotels, authorized to open but which expect losses “very high”. Finally, the self-employed will be able to claim, “like in March”, to aid of up to 1,500 euros per month, added the minister, indicating that the solidarity fund will in total be endowed with around 6 billion euros.

Social security contribution exemptions for companies affected by confinement

Bruno Le Maire also announced a “total exemption” social contributions for companies with less than 50 employees affected by administrative closures. Tourism and event companies will also be able to benefit from it “when they lose 50% of their turnover”, said the Minister of the Economy.

Independents whose activity will be stopped because of confinement will see “their withdrawals automatically suspended, and they will not have to do any administrative steps”.

A tax credit for owners of commercial premises who forgo one month’s rent

In order to encourage the owners of commercial premises to show solidarity, those who will give up “at least one month’s rent” between October and December for some companies will benefit from a tax credit, he also announced.

The companies concerned are those of “less than 250 employees” who “are administratively closed” where belong “to the hotel, café, restaurant and cultural sectors”, said Bruno Le Maire. Donors will be able to benefit from a tax credit representing “30% of the amount of abandoned rents”.

Partial unemployment maintained

As planned, the government has confirmed that the partial activity scheme will be extended until December 31, with zero remaining charges for the employer for “all protected areas or areas that are subject to administrative closure”, such as cafes, bars, restaurants, or even sports halls.

The other companies having recourse to partial unemployment will see their remains chargeable maintained at 15%, whereas it was initially supposed to rise to 40% at the beginning of November, note The echoes.

In total, the cost of this device for the State was estimated at 7 billion euros by Bruno Le Maire.

Easier access and repayment for loans guaranteed by the State

As announced a few days ago by Jean Castex, companies that wish to take out a loan guaranteed by the State will be able to do so until the end of June, instead of December 31, as initially planned. These loans could reach 10,000 euros for companies with less than 10 employees, and 50,000 euros for companies with 10 to 49 employees.

SMEs which have already taken out a loan guaranteed by the State, and who saw with concern the arrival of the first repayment deadline in March 2021, will be able to defer their payment for one year, and therefore start repaying their credit in March. 2022.

“Concretely, a restaurateur, a florist, a bodybuilder, or a bookseller who would not be able to repay his guaranteed loan from March 2021 will be able, after examination by the bank, to wait until 2022 before starting the repayment of the capital.”

Bruno Le Maire, Minister of the Economy

Last important detail: companies that choose to postpone their reimbursement will not be considered in default by the bank, as is usually the case, said Bruno Le Maire.

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