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€1,500 to support small businesses

The government has announced the creation of a solidarity fund established with governmental and regional funding

27/03/2020

In addition to exceptional economic stimulus measures, the government has announced the creation of a solidarity fund established with governmental and regional funding. Its objective will be to support companies in the sectors most impacted by the health crisis.

The €1,500 allowance is available to companies with fewer than 10 employees (excluding those belonging to a group of companies), with 2019 turnover of less than €1 million.

To claim it, the company must certify that it has suffered a decrease in activity of more than 70% compared with the previous year (over the period between 21 February and 31 March).

Prior receivables collected by the company in March will not affect their ability to benefit from the fund, since payment of the allowance is solely dependent on their decrease in activity.

Pending legislative clarification, this allowance should benefit micro-businesses, the self-employed and micro-entrepreneurs, regardless of their tax status.

This rapid and automatic assistance will be available from 31 March 2020. A specific form, including a sworn declaration concerning the company’s eligibility, should be completed online via the “entreprises” area of ​​the impots.gouv.fr website.

A second system will be provided for these same companies whose cash flow has completely dried up. Additional aid will then be released from 15 April 2020, following an instruction by the regions, in a bid to prevent bankruptcies.

N.B.: The allowance can be requested from 31 March 2020 by eligible companies that have suffered a sudden fall in turnover, by submitting a simple online application.


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Stéphanie Némarq-Attias
Counsel
Paris