In its annual report published on March 18, 2021, the Cour des Comptes examines in detail the operation of the solidarity fund, set up in the spring of 2020 to support companies facing the health crisis. It also points to the risk of cumulation of different state aids.
Solidarity fund and accumulation of aid: new risks
According to the Cour des Comptes report, the evolution of the solidarity fund and the profile of companies eligible for it introduces new risks.
"As the solidarity fund can be combined with other State aid, regional support funds and even certain social security bodies, it is possible to pay a cumulative amount of aid greater than the loss suffered", the institution points out, adding that "the risk of fraud is increased when higher amounts of aid are paid on a long-term basis".
For example, a company benefiting from both the solidarity fund and the partial activity scheme may achieve better results than a year earlier, before the start of the health crisis.
The exact amount of fraud could not be defined, but the Cour des Comptes estimates it to be "very small" between March and September 2020, "with an estimated impact of 21 million euros on the 2 billion euros distributed to companies present in the 2019 DSN, or 1% of requests."
It would be slightly higher for "under-declaration of sales or income". This estimate is based on an examination of companies "declaring their sales and income under the actual system, i.e. around 50% of beneficiaries". Potential fraud is estimated at 20 million euros for sales, and 81 million euros for income.
The Cour des Comptes estimates that the total amount of fraud may range from 20 million euros, or 0.3% of aid paid, to 100 million euros, or 1.6% of aid, between March and September 2020.
Aware of the risks associated with increasing subsidy amounts, the tax authorities have gradually stepped up controls, particularly for subsidies in excess of €30,000, which are subject to a special examination procedure.
Fonds de solidarité: many changes since its creation
When it was created in March 2020, the solidarity fund was intended exclusively for the self-employed, the liberal professions, micro-entrepreneurs and VSEs undergoing administrative closure, or suffering a substantial drop in sales. Aid was capped at 1,500 euros per month.
Between March and September 2020, 1.7 million companies made use of it, receiving average aid of 1,383 euros, for a total amount of 6.8 billion euros. " Concentrated on the sectors hardest hit by the crisis and the smallest companies, it has proved to be a very good tool for the emergency payment of small amounts of aid", states the Cour des Comptes.
From October 2020, following the new restrictions, the solidarity fund has evolved and enabled larger companies to benefit from greater aid.
The sectors most affected by the crisis, such as events, catering and hotels, are eligible for this aid, and the ceilings have been raised to 10,000 euros, then to 200,000 euros from December 2020, with no maximum limits on company size.
Between October and December 2020, the total cost of subsidies awarded rose sharply, with 8.7 billion euros paid out in just 3 months, compared with 6.8 billion during the previous 7 months.