New Business Support Measures for January 2021
New Business Support Measures for January 2021
Following the speech on January 14 by Bruno LEMAIRE, Minister of Economy, Finance and Recovery, find out the new updates of the various support measures for businesses for the month of January 2021:
Solidarity Fund :
- 1st change :
The revenue from distance selling and take-away sales will not be included in the reference turnover for the calculation of aid under the solidarity fund.
This will apply from December 2020 and will be the rule as long as the solidarity fund is in place.
- 2nd change :
Companies in sector S1 bis loosing at least 70% of their turnover, will be entitled to compensation covering 20% of their 2019 turnover up to a limit of 200,000 euros per month.
These companies will be able to benefit from this aid as of December 2020, regardless of their size.
- 3rd change :
Coverage of up to 70% of the fixed costs of administratively closed companies, or companies belonging to sector S1 and S1 bis, with a turnover of more than €1 million per month.
This exceptional aid will be in addition to aid from the solidarity fund.
It will be limited to 3 million euros for the period from January to June 2021.
The additional aid for fixed costs is extended to smaller structures that would not generate 1 million euros in revenues per month but have significant fixed costs ( gyms, indoor activities, vacation centers).
- 4th change :
A special effort will be made for winegrowers affected by the American sanctions on still wines and cognac.
Winegrowers will therefore be able to benefit from aid from the reinforced solidarity fund:
- If they lose 50% of their turnover, they will receive compensation of 15% of their 2019 turnover up to a limit of 200,000 euros per month;
- If they lose 70% of their turnover, they will receive compensation of 20% of their 2019 turnover up to a limit of €200,000 per month.
State-guaranteed loan
All companies that wish to do so, regardless of their activity and size, can obtain the right to an additional one-year deferral to start repaying their state-guaranteed loan.
A company that contracted an EMP in April 2020, and would not be able to start repaying it in April 2021, will be able to request a one-year deferral and start repaying it from April 2022.
To benefit from this, companies that have contracted an EMP must see their bank advisor to decide on the new repayment plan.
Other bank loans
The banks will look favorably and on a case-by-case basis at any moratoria or extensions of deadlines that are necessary for companies that are still subject to activity restrictions.
Exemption from social security contributions
Exemptions and subsidies for the payment of contributions introduced in December are maintained for the month of January.
All companies in the S1 and S1 bis sector that are administratively closed or that suffer a decrease of at least 50% of their turnover will continue to benefit from them.
Deferred accounting depreciation of assets
Many assets have not been used as they should have been in 2020, such as restaurant ovens, discotheque equipment or certain machines in ski lift companies.
These assets therefore do not have to be depreciated as is the case in a normal year.
It will be possible to defer the accounting depreciation of these assets in order to relieve the companies' accounts and preserve their equity.
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.