New details on the Solidarity Fund
New details on the Solidarity Fund
The solidarity fund was created by the State and the regions in order to prevent the suspension of activity of very small enterprises (VSE), micro-businesses, the self-employed and the liberal professions, which have no more than 10 employees, an annual turnover of less than 1 million euros and an annual taxable profit of less than 60,000 euros, particularly affected by the economic consequences of COVID-19.
These are companies that have been banned from receiving the public under Article 8 of the Decree of March 23rd, 2020, even if the company retains an activity such as take-away sales, delivery and order withdrawals, "room service" or which have suffered a loss of turnover of at least 50% in March 2020 compared to March 2019, in order to receive the aid for the month of March, and in April 2020 compared to April 2019 or, if the company wishes so, compared to the monthly turnover for 2019 in order to receive the aid for the month of April.
In addition, Bruno Le Maire, Minister of the Economy and Finance, announced on Wednesday the 15th April 2020 that farmers who are members of a joint farming group (GAEC), artists and authors, and companies under judicial reorganization and those in back-up procedures will also be able to benefit from the solidarity fund.
The fund has two components:
1. The first component allows the company to receive aid in an amount equal to the declared loss of turnover in March and April 2020, up to a maximum of EUR 1 500.
The reference for calculating the loss of turnover is set out below:
For the month of March 2020:
- For companies existing on March 1st, 2019: the turnover for the month of March 2019
- For companies created after March 1st, 2019: the average monthly turnover between the creation date and February 29th, 2020
- For entrepreneurs who benefited from sick leave, work accident or maternity leave in March 2019: average monthly turnover between April 1st, 2019 and February 29th, 2020
For the month of April 2020:
- For companies existing on the 1st of March 2019: the turnover for the month of April 2019 Or, at the choice of the company, the average monthly turnover for the year of 2019
- For companies created after the 1st of March 2019: the average monthly turnover between the date of creation and the 29th of February 2020
2. The second component enables the companies which benefit from the first component to receive additional aid of between EUR 2 000 and EUR 5 000 when:
- Their available assets do not allow them to settle their debts due within 30 days and the amount of their fixed charges, including commercial or professional rents, due for the months of March and April 2020 ;
- They have been refused or have been without a response for more than 10 days to a request for a cash loan of a reasonable amount from their bank.
This request can now be made with the services of the Regional Council of your place of residence.
PLEASE NOTE: the subsidies paid by this solidarity fund (1,500 euros + a supplement ranging from 2,000 euros to 5,000 euros) will be exempt from corporation tax, income tax and all contributions and social security contributions of legal or conventional origin.
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