Solidarity fund, exemption from social security contributions, partial activity: the government has put in place numerous measures to support companies weakened by the health crisis. Which sectors have benefited most from state aid?
Solidarity fund to the rescue of 1.9 million companies
According to French Finance Minister Bruno Le Maire, the solidarity fund is the "cornerstone of the government's economic response", as he reminded us when announcing the extension of the nationwide 6pm curfew.
The scheme benefited 1.9 million companies, almost 99% of them micro-businesses (1.87 million), with fewer than 10 employees. The remaining companies are all SMEs. 40% of these beneficiaries received between 5,000 and 10,000 euros per month, and 14% between 1,400 and 1,500 euros. The total amount paid out in November to 940,691 companies came to 4 billion euros.
These companies belong to a variety of sectors: 16% of them are in commerce, 11.5% in construction, and 10% in accommodation and catering.
If we take into account the amount of aid received under the solidarity fund, it is the accommodation and catering sector that comes out on top, logically enough given the restrictions on activity, with 20% of the total amount.
Next came the retail sector with 16.5%, followed by transportation and warehousing with 9%. Companies in the arts, entertainment and recreation sector received 6.3% of the total amount of the solidarity fund.
Beneficiaries of social security exemptions
Another aid measure introduced by the Ministry of the Economy and Finance, exemptions from social security contributions, benefited 370,000 companies. 60% of the total amount of these exemptions went to support companies with fewer than 20 employees.
The hotel and restaurant sector, heavily impacted by the health crisis, benefited from 35% of the total amount of these exemptions, i.e. a sum of 990 million euros. According to Bercy, the culture and leisure sector, also hard hit by the epidemic and activity restrictions, benefited from 540 million euros.
Alongside the social security exemptions, the government also offered certain companies the possibility of deferring charges, with the service sector the biggest beneficiary, accounting for 59% of the total.
The partial activity scheme was deployed in 2020 for 8.4 million employees. In April, 971,000 companies benefited, compared with 382,000 in November.