Solidarity Fund: the new rules

As in March, in order to limit the spread of the virus, the Government decided to restrict the movement of the population and close several businesses welcoming the public. This measure affects mostly the so-called non-essential businesses, cafes, restaurants, indoor sports facilities or cinemas. To support these companies and those that, without being closed, have suffered from the effects of public circulation restrictions and to limit the risk of bankruptcy, a solidarity fund was set up as early as March 2020. This scheme, which compensates for all or part of the turnover lost by these companies, has just been revised following the regional curfew measures decreed last October and the widespread stay-at-home order adopted for the month of November.

Eased restrictions

Until now, only companies with no more than 20 employees and less than 2 million euros in turnover could qualify for the solidarity fund. This financial support is now open to all companies with less than 50 employees and without any conditions of turnover or profit. Companies controlled by a holding company are also eligible, provided that the cumulative workforce of its subsidiaries does not exceed 50 employees.

For the month of October

Businesses that suffered an administrative closure between September 25 and October 31 as a result of the health protection measures can benefit from a financial assistance equal to their loss of turnover up to the limit of €333 per day of the closure.

Companies located in areas under curfew and belonging to sectors in great difficulty (restaurants, hotels, sports, shows, etc.) and which lost more than 50% of their turnover during the same period, can also be eligible for assistance under certain conditions.

Other companies, subject to having lost between 50% and 70% or more than 70% of their turnover, may benefit from a financial assistance covering all or part of their turnover loss within the limit of €1,500 or €10,000 depending on the situation.

For the month of November

Businesses that suffer an administrative closure during the month of November or which belong to the sector in great difficulty and which lost at least 50% of their turnover in November will be able to benefit from financial assistance equal to their loss of turnover up to €10,000.

Other companies, subject to certain eligibility requirements, will only be able to claim aid capped at 80% of the loss in turnover up to the limit of €10,000 or €1,500 depending on the case.