A new solution to cover the fixed costs of businesses

The government has announced a new solution for companies hit hard by the crisis: the partial reimbursement of their operating costs. This additional aid from the solidarity fund can be requested for the months of January and February from 31 March.

Who can benefit?

Three situations are listed by the Ministry of the Economy and Finance in its press release of 10 March. The following are eligible:

1) Companies (created before 1 January 2019) that are administratively closed and which :

• have a monthly turnover of more than €1 million (or €12 million in annual turnover),

• show a loss of at least 50% of their turnover,
• are eligible for the solidarity fund for the months concerned (e.g. in January or February for a claim for January and February).

2) Companies (created before 1 January 2019) carrying out their main activity in the so-called S1 and S1 bis sectors which :

• have a monthly turnover of more than EUR 1 million (or EUR 12 million annual turnover),
• show a loss of at least 50% of their turnover,
• are eligible for the solidarity fund for the months concerned.

3) Sports clubs, indoor leisure facilities (climbing, bowling, etc.), hotels, cafés, restaurants (and tourist residences) located in mountain areas, zoos and thermal baths - regardless of their turnover - that:

• show a loss of at least 50% of their turnover,
• are eligible for the solidarity fund for the months concerned.

What is the amount of the aid?

The fixed costs of these companies are partially covered. This new solution covers :

• 70% of gross operating losses for companies with more than 50 employees, up to a limit of €10 million over the year 2021.
• 90% of gross operating losses for companies with less than 50 employees, up to a limit of 10 million euros over the year 2021.

These gross operating losses correspond to the gross operating surplus (EBE) which is calculated, according to Bercy, according to the following formula:

EBE = revenue

+ subsidies (such as solidarity fund aid)

• purchases consumed
• consumption from third parties
• personnel costs
• taxes, duties and similar payments

The company's operating losses therefore include any Solidarity Fund aid received by the company.

How to benefit from the scheme? 

In order to benefit from this aid, companies must declare themselves on the company's professional space on the DGFiP website. The company logs on to its personalised and professional space and completes the application. Given the amount of aid involved, up to €10 million, a form must be filled in by the company's accountant, which will be considered authentic. Each company will be free to choose whether to have a payment of up to 10 million euros in one go or in three instalments. Each company will choose what suits it best in terms of covering its fixed costs, in addition to the solidarity fund.

Applications for the months of January and February can be submitted from 31 March 2021 on the impots.gouv.fr website. Applications for the months of March and April will be made in May.

Our experts will help you set up this new system. Do not hesitate to ask your personal contact.

---

Our experts are constantly monitoring regulatory changes providing support to businesses. Our articles are updated by midday on the basis of press releases and the publication of decrees by official bodies, which are deciphered by our experts. There may sometimes be a couple of hours delay between the official texts and our publication, the purpose of which is to provide you with preliminary answers to your questions.