What foreclosure aid is available for businesses in France?


French Economy Minister Bruno Le Maire presented a plan to help businesses in France during the lockdown yesterday (October 29) and said the government would provide “even stronger” financial support than during the lockdown. first lockdown in March.Mr. Le Maire declared: “This confinement is a blow to all the companies which will have to close from tomorrow (October 30). I am thinking in particular of the 200,000 stores that will be forced to close. ”

Read more: Which stores can stay open during the lockdown in France?

The government anticipates that the new support program will cost 15 billion euros. We explain what has been announced so far.

Increase in the solidarity fund for small and medium-sized enterprises

Mr. Le Maire said: “All businesses and stores closed due to administrative decisions will receive compensation of up to € 10,000. This includes businesses with not only up to 10, but up to 50 employees. ”

Also eligible are businesses that do not have to close but will still suffer losses of at least 50%, such as hotels.

Self-employed workers can apply for aid of up to € 1,500 per month “as in March”.

The minister said 6 billion euros had been allocated to the solidarity fund.

Abandonment of social contributions for the companies concerned

Companies with less than 50 employees will benefit from a “total exemption” from payment social contributions, i.e. social contributions such as social security and employee insurance benefits.

Tourism and events businesses are also eligible if they lose more than 50% of their turnover due to containment.

Self-employed workers who cannot work due to the lockdown will have “their direct debits suspended, without any administrative action to take on their part”.

Tax credits for business owners who waive one month’s rent

Landlords who own premises that house businesses will receive tax credits if they allow tenants to forgo “at least one month’s rent” between October and December.

To be eligible, owners must lease space from businesses with fewer than 250 employees that have been administratively closed, including hotels, cafes, restaurants and cultural businesses.

In these circumstances, landlords can claim a tax credit of “30% of the amount of rent lost”.

Partial unemployment to continue

Partial unemployment benefits (called Partial unemployment), similar to the UK’s leave program, will continue for “any protected areas or areas that have been administratively closed” following the lockdown, Le Maire said.

This deadline is currently extended until December 31, at no cost to employers, for eligible businesses such as cafes, bars, restaurants and sports centers.

Other companies will have to cover 15% of the costs of staff unemployment, against 40% which was to come into force in early November.

Mr Le Maire said € 7 billion had been allocated to cover unemployment costs during childbirth.

Access to extended state guaranteed loans

Prime Minister Jean Castex announced earlier this week that companies wishing to apply for state-guaranteed charges would now have until the end of June 2021, rather than December 2020, to apply.

Loans of up to € 10,000 are available for businesses with fewer than 10 employees, and up to € 50,000 for businesses with 10 to 49 employees.

Companies that have already taken out a loan initially faced the first repayment deadline in March 2021, but this has now been pushed back to March 2022.

Mr Le Maire said: “A restaurateur, florist, mechanic or bookstore who is unable to start repaying their secured loan in March 2021 may, after a review by the bank, wait until 2022 to start the loan. refund.”

Companies that choose to delay repayment will not be considered in default by the bank, as they would under normal circumstances.

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