Coronavirus (Covid-19): Implementation of direct aid to very small business facing difficulties

In order to avoid the closure of very small businesses in difficulty as a result of the Coronavirus (Covid-19) epidemic, a solidarity fund financed by the Government and the regions has been set up. This fund will make it possible to pay direct aid to eligible businesses.

Businesses concerned

Aid will be available to companies with up to 10 employees, regardless of their status (company, individual entrepreneur, association, etc.) and their tax and social security system (including micro-entrepreneurs).

However, holders of an employment contract or a retirement pension are not eligible, nor are entrepreneurs who have been on sick leave for at least two weeks in March.

Conditions of application

Several cumulative conditions are required to be eligible for this aid, namely :

- to have achieved a turnover for the last financial year ended of less than €1 million and a taxable profit of less than €60,000;

- be subject to closure by decision of the administration or have suffered a loss of turnover of at least 70% in March 2020 compared to March 2019. In case of creation of a company after March 2019, the comparison of the turnover must be made with the average monthly turnover over the months of activity since the creation of the company;

- have started its activity before 1 February 2020;

- not have had a declaration of cessation of payments before 1 March 2020.

Amount of aid

The amount of this aid is set at the amount of the declared loss of turnover in March 2020 in relation to the turnover achieved in March 2019, up to a limit of €1 500.

For enterprises created after 1 March 2019, the reference for calculating the loss of turnover shall be the average monthly turnover between the date of creation and 1 March 2020.

Where the entrepreneur was granted leave for sickness, accident at work or maternity in March 2019, the average monthly turnover between 1 April 2019 and 1 March 2020 should be taken as the reference point.

Formalities

The companies concerned will be able to apply for aid up to a maximum amount of €1,500 from 1 April next.

An application form will be made available on the impots.gouv.fr website containing the information essential for processing their application (Siren/Siret number, RIB, amount of turnover, amount of aid requested and a declaration on honour certifying that the information provided is accurate).

Tax treatment

The aid paid to companies will not be taxable.

Please note: Additional aid of a lump sum of €2,000 may be granted to the company by the region when :

- it is unable to pay its debts due within 30 days;

- it has been refused a cash loan of a reasonable amount by its bank;

- it employs at least one employee.

Companies will be able to visit a platform opened by the region in which they operate from 15 April 2020.

Feel free to contact our expert team to help you figure out aids that your eligible and conditions.

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