Fonds de Solidarité financial aid for businesses and the self-employed (October-November 2020)

Newsletter - November 2020

Since the beginning of the health crisis, a fonds de solidarité (solidarity fund) has been available for small and very small businesses and the self-employed to avoid them shutting down. With the new lockdown measure, the financial aid has been improved and should be further increased if certain businesses are required to remain closed for longer.

Who for?

  • Shopkeepers, tradespeople, the liberal professions and other economic agents, farmers who are members of a collective, and artists/authors,
  • Natural and legal persons
  • Employing fewer than 50 people
  • Businesses established before 31 August 2020 for losses recorded in September and before 30 September 2020 for those of October
  • Business sectors: hotel, catering, tourism, events organisation, regular road transport of travellers, transport of travellers by taxi and private passenger cars with driver, media advertising, etc. The list of sectors is provided in annexes 1 and 2 to Decree no. 2020-371 of 30 March 2020 amended by Decree no. 2020-1328 of 2 November 2020 (https://www.legifrance.gouv.fr/loda/id/JORFTEXT000041768315/

Allocation and Amount

  • Businesses and retail outlets affected by administrative closure: up to €10,000 per month
  • Businesses that are open but significantly affected by the crisis: tourism, events organisation, culture, sport and related sectors, monthly amount up to €10,000 if they have lost at least 50% of revenue
  • Other businesses that are open, but impacted by the lockdown: monthly amount up to €10,000 if they have lost at least 50% of revenue
  • Businesses prohibited from receiving the public between 25 September and 31 October 2020: amount equal to the loss of revenue within the limit of €333 per day during the prohibited period
  • Businesses prohibited from receiving the public between 1 November and 30 November 2020: amount equal to the loss of revenue within the limit of €10,000
  • Businesses established in curfew areas: if the business lost at least 50% of revenue in October
    • Businesses in the sector mentioned in Annex 1 to the Decree: €10,000 maximum
    • Businesses in the sector mentioned in Annex 2 to the Decree that lost more than 80% of revenue during the first lockdown (except those created after 10 March 2020): €10,000 maximum
    • Other businesses: €1,500 maximum, if created before 30 September 2020
  • Businesses in significantly impacted sectors (businesses in the sector mentioned in Annex 1 to the Decree and those mentioned in Annex 2 to the Decree that lost more than 80% of revenue during the first lockdown (except those created after 10 March 2020)):
    • For October:
      • €1,500 maximum for a business that lost between 50% and less than 70% of revenue
      • €10,000 maximum for a business that lost at least 70% of revenue, capped at 60% of monthly revenue earned the previous year
    • For November:
      • Businesses in the sector mentioned in Annex 1 to the Decree: amount equal to the loss of revenue within the limit of €10,000
      • Businesses in the sector mentioned in Annex 2 to the Decree that lost more than 80% of revenue during the first lockdown (except those created after 10 March 2020): amount equal to the loss of revenue within the limit of €10,000 (but not less than €1,500)
    • Other businesses that lost at least 50% of revenue in October or November: €1,500 maximum

 Reference revenue used for the calculation

Businesses prohibited from receiving the public between 25 September and 31 October 2020 OR which lost at least 50% of revenue during the monthly period between 1 October 2020 and 30 November 2020:

  • compared to the same period a year earlier,
  • or, if the companies so wish, compared to average monthly revenue in 2019,
  • or, for companies created between 1 June 2019 and 31 January 2020, compared to the average monthly revenue over the period between the creation date and 29 February 2020,
  • or, for companies created between 1 February 2020 and 29 February 2020, compared to revenue generated in February and calculated for one month
  • or, for companies created after 1 March 2020, the average monthly revenue generated between 1 July 2020, or the creation date if it is later, and 30 September 2020.

 This financial aid is not cumulative with:

    • Fonds de solidarité aid paid to businesses in French Guiana and Mayotte that were prohibited from receiving the public in September and October
    • Aid paid to businesses prohibited from receiving the public
    • Aid paid to businesses in curfew areas
    • Aid paid to businesses in significantly impacted sectors

      –> The company chooses which option is best for it

 How to apply

  • Online on the DGFiP (Direction générale des finances publiques) website
    • starting 20 November: for amounts paid for October,
    • early December for aid paid for November.
  • By providing the following information: SIREN and SIRET business registration numbers, bank account details, revenue for the month in question and the reference month, declarations, a certified statement
  • The amount is calculated automatically based on the information declared
  • The DGFiP will perform a first verification and promptly pay the amount allocated to the applicant. A more in-depth verification may be performed by the DGFiP after payment.

 This financial aid is tax-free (income and corporate tax) and is not subject to social security contributions.

 
The monthly newsletter is distributed free of charge to the firm’s clients via email. This document is designed to provide information and may not reflect the most recent legal developments. Clients and readers should not take action or refrain from taking action on the basis of information contained in this newsletter without seeking professional advice.

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