According to the French Prime Minister, Jean Castex, nearly 20 billion euros in additional aid will be released over an 8-week period to tackle the Covid-19 crisis. Reinforcement of the solidarity fund, tax exemptions, financed short-time working... Here's a closer look at the new aid available to companies at the time of reconfinement.
A stronger solidarity fund
The French government has decided to reactivate the Business Solidarity Fund. This fund, set up in the spring to help SMEs and the self-employed, has seen its access conditions considerably extended. Whereas the original scheme provided for compensation of up to 1,500 euros per month for companies with fewer than 10 employees subject to an administrative closure order, from November 1, the maximum amount of aid has been increased to 10,000 euros per month, and can be paid to all companies with 50 or fewer employees.
Bercy specifies that companies that remain open, but have lost more than 50% of their sales, will be able to apply for the initial monthly aid of 1,500 euros.
Small businesses and the self-employed will be able to declare themselves on the DGFIP website at the end of November, and will receive their aid at the end of the month or beginning of December," explains Bruno Le Maire.
Exemptions and deferrals
Companies with fewer than 50 employees that have been administratively closed will be exempt from social security contributions, as will players in the tourism, sports, culture and events sectors who can prove that their sales have fallen by more than 50%.
For the self-employed, deductions of contributions will be automatically suspended.
PGE reimbursement postponed to 2022
The government has authorized companies with a state-guaranteed loan (PGE) to request a deferment of repayment for 2 years instead of one, and thus to start repaying from March 2022.
Another new feature for EMPs is that access has been extended until June 30, 2021, following the announcement of the curfew.
Direct government loans
For companies unable to find financing solutions, the French government can grant loans of up to 10,000 euros (for employees with fewer than 10) or 50,000 euros (for employees with between 10 and 50).
Short-time working scheme maintained
Jean Castex points out that companies that have been administratively closed, and those most affected, will see their remaining costs maintained at 15%, whereas they were due to rise to 40%. As a result, the short-time working scheme will not be subject to the cuts initially scheduled for November 1.
A tax credit to lower rents
To meet the needs of retailers and restaurateurs, the government has announced the introduction of a tax credit to encourage lessors to waive part of their rents. Specifically, those who waive one month's rent will be entitled to a tax credit corresponding to 30% of the rent.