SOLIDARITY FUND. The executive has just published two new decrees aimed at supporting companies hard hit by the Covid crisis, and in particular by the ban on welcoming the public. Are you eligible? How it works ? We take stock.
[Mis à jour le 3 février 2022 à 09h25] Since the beginning of the Covid crisis, the State and the Regions have set up a solidarity fund to warn small businesses, micro entrepreneurs, self-employed and liberal professions, particularly affected by the economic consequences of Covid, of the cessation of activity.
This Wednesday, February 2, 2022, the Prime Minister John Castex and its government have announced, through two decrees, certain developments in the aid granted to companies welcoming the public and hard hit by the Covid crisis. First, the establishment of a help “fixed costs consolidation“intended for companies created before January 1st 2019. To claim it, you must in particular have suffered a loss of turnover of at least 50% between December 1, 2021 and January 31. Also, the State wished extend Reinforcement Aid in January 2022. This system, which benefits nightclubs, bars and restaurants closed since December 10, 2021, will therefore have until March 31, 2022 to submit their request for assistance.
The solidarity fund is a system set up by thestate and the regions in order to help and prevent the cessation of activity of small businesses, micro entrepreneurs, self-employed and liberal professions, particularly affected and exposed to the economic consequences of the Covid crisis. the solidarity fund makes it possible to pay direct aid to the companies in question, in addition to other measures or aid that they may receive elsewhere. By whom is the solidarity fund financed? Mainly by the State, regions and overseas communities. The latter is also open to voluntary contributions, in particular from other local authorities (departments, municipalities, EPCI) and certain private actors (insurance companies). The primary goal is to help companies that have experienced a very significant drop of their activity in order to support them in the face of a quite simply exceptional situation. Help is not not refundable, however, checks may take place in the future and give rise to a complaint from the tax authorities. In other words, the restitution of all or part of the aid if the applicant was not entitled to it, or not in full.
Companies in the sector S1 and S1 Bis can benefit from the coverage of fixed costs, in the same way as those closed administratively. At what level ? 70% fixed costs and 90% for companies from less than 50 employees. The aid is capped at 10 million euros over the period January-September 2021. From December 2021, eligible companies benefit from a cap of up to 12 million euros.
If a business closed administratively has reached the ceiling of 10 million euros, further assistance is possible. “Fixed closing costs” (see below).
Depending on the type of business and the sector of activity, various underlying mechanisms have been put in place by the government, here they are:
- Help fixed costs rebound
- Help new business rebound
- Original fixed cost aid
- Help fixed costs seasonality
- Group fixed cost assistance
- Help fixed costs new business
For full details, visit the website economie.gouv.fr
Established following Decree No. 2022-111 of February 2, 2022, the so-called “fixed costs consolidation“aiming to compensate for the uncovered fixed costs of companies whose activity is particularly affected by the covid-19 epidemic. This aid is available to companies that were created before January 1, 2019 and fulfilling, for the eligible period between on December 1, 2021 and January 31, 2022, the following conditions:
- Carry out a main activity in a sector mentioned in appendix 1 or appendix 2 of the decree
- Have a negative EBITDA consolidation fixed costs during the eligible month.
- Have suffered a loss of turnover of at least 50% during the eligible month.
For each eligible period, the aid takes the form of a grant, the amount of which amounts to 70% of the opposite of the EBITDA. For small businesses, via an exemption, the rate is increased to 90%. The aid is capped at 12 million euros. This ceiling takes into account all the aid paid since March 2021 under this decision, in particular “fixed cost” and “fixed cost rebound” aid.
Requests for aid may be submitted electronically on the impots.gouv.fr website, between February 3 and March 31, 2022. Where applicable, requests must be made within 45 days of receiving other aid. put in place for each eligible month, in particular the reinforcement aid and the solidarity fund. For more details, you can visit the website Legifrance.
Reinforcement aid is extended in January 2022. Thanks to decree no. 2022-112 relating to the adaptation of Renfort assistance in January 2022, applications can be submitted electronically on the impots.gouv.fr website between February 3, 2022 and March 31, 2022. To find out all the details on this new decree aimed at supporting companies whose activity is prohibited from receiving the public, go to here.
Beyond the “Fixed costs” system accessible to all companies in the S1 and S1 Bis sectors for the months of December 2021 and January 2022, the “reinforcement“was set up for the benefit of discos, bars and restaurants closed to the public since December 10, 2021 as part of the fight against the spread of Covid.
This concerns companies for which the activity of dance is predominant. The aid paid is equal to 100% the amount of expenses for the month of December and, in accordance with the authorization of the European Commission, limited to 2.3 billion euros. To benefit from it, the company must have been created before the January 31, 2021, having been banned from receiving the public in December 2021 and having suffered a loss of turnover ofat least 50%.
In the context of the rebound of the coronavirus epidemic, the government was forced to review its strategy. If the executive has put an end to “whatever the cost”, the device of solidarity fund was extended for losses from October 2021. Are you concerned? Here are the conditions to be met:
- Have been banned from receiving the public (subject to a loss of turnover of 20%), or a partial closure of at least 21 days with a loss of turnover of at least 50%, or having suffered a closure in a territory subject to confinement for 8 days at least (subject to a loss of turnover of 20%).
- Being part of the protected sectors (S1, S1bis and similar) “subject to having suffered a loss of turnover of 10%, having received the solidarity fund for at least one month between January and May, having achieved 15% of the reference turnover, to be domiciled in a territory subject to a state of health emergency and which has been subject to confinement or curfew for at least 20 days”.
Aid from the solidarity fund for the month of October is between €1,500 and 20% of turnover within the limit of €200,000. The request must be made on the tax website before January 31, 2022.
The entire process is done online. the entire process is done online. You must connect to your personal space on the tax website using your tax ID (available on your last tax notice) and your password. Click on secure messaging then on “Write” and select the appropriate reason. Finally, select the desired period to generate the form, and integrate all the information about your company (SIRET number, number of employees, turnover…).
To make your solidarity fund request for the month of October 2021, you must connect to your private space, not to be confused with your usual professional space on the site. impots.gouv.fr. In your email, you will find in your secure email under “Write the reason for contact”: “I ask for help from companies weakened by the Covid-19 epidemic”. All you have to do is follow the given steps.
Ugly “Closing“intended for companies that have saturated the aid”fixed costs“and who have been banned from receiving the public during the year 2021, or depend on 80% from a forbidden place of reception. To benefit from this aid, it is necessary to have lost at least 80% of its turnover over the period January 1-August 31, 2021. This device makes it possible to compensate 70% of EBITDA (gross operating surplus) negative within the limit of 25 million euros per company. You have until February 28 to apply.
This is the system that takes over from the solidarity fund on October 1, 2021. Operational since March 2021, the management of fixed costs has so far been aimed at companies in the S1, S1bis sectors, whose monthly turnover exceeds 1 million euros “or the following sectors: indoor sports halls, thermal baths, zoological parks and theme parks; businesses in closed shopping malls or mountain resorts, hotels, cafes, mountain restaurants”, without turnover condition . This device allows compensation for 90% of fixed charges not covered by receipts for companies with less than 50 employees and 70% for companies with more than 50 employees”, we explain on the website of the Ministry of the Economy. To benefit from it, it is necessary to justify a loss of turnover of at least 50%.
The calculation of the aid is based on the gross operating losses. Here is the formula that applies:
EBITDA = Receipts + subsidies – purchases consumed – consumption from third parties – staff costs – taxes and similar payments.
A decree was published in mid-October, extending this system. “It adds a new eligible period of one month (September) to the so-called “original” fixed cost aid provided for in chapter 1 of the decree of March 24, 2021″, it says in the notice. “The eligibility conditions previously in force remain: having received the solidarity fund (…), having been created before September 1, 2019, having a negative EBITDA fixed costs in September 2021, having suffered a loss of turnover of 50 % at least”. As a reminder, the CA must also meet the following criteria:
- Be more than 1 million euros for the monthly turnover
- The company must have been banned from receiving the public in September 2021 or carries out an activity listed in sector S1/S1 bis
“The applications will be submitted within forty-five days after the payment of the aid from the solidarity fund for the month of September 2021”, can we also read. “The so-called “seasonality” aid provided for in Chapter II of the aforementioned decree of March 24, 2021 remains unchanged and calculated over a period of 8 months; the decree introduces the possibility for companies to file group aid (…) The application must be filed before November 15, 2021″.
A new decree on November 3 in the Official Journal, establishing aid for fixed “rebound” costs, for companies “whose activity is particularly affected by the consequences of the health crisis and which have a particularly high level of fixed costs”. The company must have been created before January 1, 2019.
How do you formulate a request for the fixed cost mechanism?
Unlike the solidarity fund, you have to go through the professional space on the impots.gouv.fr site. A certain number of accounting documents must be collected. Find the dedicated Frequently Asked Questions on the ministry website.