new aid measures for companies in 2021

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Economy Minister Bruno Le Maire announced several new measures on Thursday to help companies withstand the consequences of the Covid-19 epidemic or US trade sanctions.

Here are the main ones.

Large closed companies: Fixed costs covered

Closed companies and sectors dependent on them, with a monthly turnover of more than one million euros, benefit from covering their fixed costs of up to 70{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} within the limit of 3 million euros for the entire first half of 2021.

Bruno Le Maire stated that this measure is aimed at 'important structures' like hotel chains, 'restaurateurs with several restaurants in the same city' or 'indoor activities' like bowling alleys or halls. Sports.

The EUR 3 million ceiling is the result of negotiations with the European Commission, which will continue and could be further increased in the future, the minister added. This new aid will be added to the aid already received under the Solidarity Fund.

According to Le Maire, the government is also working with parliamentarians to lower the eligibility threshold of one million euros in sales.

The reinforced solidarity fund

The solidarity fund for companies indirectly affected by administrative closings in connection with the fight against the Covid-19 pandemic, which has so far been limited to 10,000 euros per month, has been increased to a compensation of 20{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of the amount compared to last December up to a turnover Limit of 200,000 euros if they have lost 70{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of their sales.

Companies in sectors that are not directly or indirectly affected by administrative closings have no longer been eligible for the Solidarity Fund since January 1st.

In total, the solidarity fund, including the assumption of fixed costs plus fee exemptions, costs the state 4 billion euros per month, whereby the expenditure for short-time work is not included.

PGE: Reimbursement can be deferred

Corporations have the 'right' to benefit from their bank for an additional year to begin repaying government-guaranteed loans (PGEs) raised to help manage the crisis.

With the establishment of the EMP at the beginning of the health crisis, the state had introduced a period of one year before banks could demand repayment of loans. This deadline should therefore expire at the end of March for some companies while many of them are still in trouble.

Bruno Le Maire stated that he had received from the French Bankers Association that 'all companies, regardless of their area of ​​activity and size', can 'legally benefit' from 'deferred repayment' for another year '.

More than 638,000 PGEs were granted by the banks for an amount of around 130 billion euros.

Winemaker: Help with US sanctions

Winegrowers who are particularly affected by US tariff sanctions in the context of the trade dispute between the EU and the USA will benefit from a 'special effort' and will therefore be included in the Solidarity Fund, which is also now reserved for directly or directly affected sectors indirectly through the administrative restrictions to combat the Covid-19 epidemic.

Winemakers who lose 50{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of their sales are compensated up to 15{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} within the limit of 200,000 euros per month and 20{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} for those who lose 70{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of their sales.

'And they will also be able to benefit from the support of fixed costs, with (a) an upper limit of 3 million euros for large structures,' said Bruno Le Maire.