Roche & Cie

Covid-19 – New Measures Announced by the French Government to Support Businesses

16 Apr 2020

On Monday, April 13, Emmanuel Macron announced the extension of the lockdown in France until May 11, 2020, which worries many companies put in difficulty by the Covid-19 pandemic.

Subsequently, Bruno le Maire, Minister of the Economy, specified that the measures to help companies to resume their activities were going to be reinforced and extended.

What are these main measures?

Continuation of the 1 500€ aid for companies with a turnover loss of more than 50% for April and May.

The aid of 1,500 euros should be renewed for the months of April and May 2020. This aid is now allocated under a solidarity fund to companies which, without risking bankruptcy, have seen their turnover fall by more than 50%.

Extended and reinforced short-time working measures

The Minister of the Economy, Bruno Le Maire, has estimated the cost of short-time working at more than 24 billion euros. He explained that part-time working would be “reinforced until necessary”, particularly in the hospitality and restauration sectors.

Aid for companies threatened with bankruptcy would be increased from €2,000 to €5,000.

An increase in aid from €2,000 to €5,000 should be granted to companies threatened with bankruptcy.

The method of calculation for the granting of this aid should be changed. The comparison will no longer be made on the basis of the turnover of the same month in 2019, but of the last 12 months on average, allowing many more companies to be included.

Moreover, companies in receivership and farmers’ groups will now be eligible for this aid.

The deferral of tax and social security charges – or a total cancellation for certain sectors?

Gérald Darmanin said that he was considering the idea of cancelling social and tax charges altogether in certain sectors which will not be affected by the end of the lockdown scheduled on 11 May (in particular restaurants, bars, etc.).

But the Minister of Economy is cautious about this possibility because “constitutionally (…) one cannot normally cancel by sector”.

The postponement of loan repayment deadlines

Emmanuel Macron has asked the banks to postpone loan repayment deadlines more massively. The aim is to give a breath of fresh air to the treasuries of small businesses.

Specific aid for the most affected sectors. A specific plan for the sectors affected, such as tourism, hotels, restaurants and culture, is to be launched shortly.

Aid for the most modest

The most modest families and the most precarious students will be able to receive exceptional assistance as soon as possible.

For the time being, the amount of this aid and the conditions of eligibility have not yet been specified.

Roche & Cie will keep you informed of the details of these measures in the coming days.

Cabinet Roche & Cie, English speaking accountant in Lyon, France.
Specialist in Real-Estate and Non-resident taxation.