Recontracting : Aid to tourism businesses

04/11/2020

Summary

Find out what social benefits you are entitled to as a result of this new confinement.

On 29 October, the Minister of the Economy, Finance and Recovery, Bruno LEMAIRE, announced a strengthening of support for businesses. As actors of tourism, you have access to the following aids:

The solidarity fund

For the duration of the containment, the solidarity fund will be reactivated, and the state plans to disburse no less than 6 billion euros per month.

What this means for you:

If you have been forced to close down and your company has fewer than 50 employees, you are eligible for compensation of up to €10,000.

As a tourism company, in the same way as event, culture and sports companies, if you continue to operate but your turnover has fallen by at least 50% and your company also has fewer than 50 employees, you can receive compensation of up to €10,000

If you are in one of these two cases, you must declare your situation on the website of the Direction générale des Finances publiques at the beginning of December. You will receive your compensation in the days following your declaration.

Exemption and deferral of social security contributions

If you are in one of the two cases above, you will also benefit from a total exemption of your employer and employee social charges.

For the self-employed, all levies are suspended. In the event that a self-employed person is subject to an administrative closure, he will benefit from a total exemption from his social charges.

State-guaranteed loans

The state has extended the deadline for taking out a loan from 31 December 2020 to 30 June 2021. For SMEs, rates between 1 and 2.5% have been negotiated with French banks. In addition, companies that are unable to begin repayment of their EMP will be able to request a new one-year deferment of payment, without being considered a default by the Bank of France. 

Direct loans from the state

In the event that your company cannot find any financing solution, the state has released 500 million euros to enable you to take out a direct loan in the following cases:

For companies with less than 10 employees: the loan can reach €10,000

For companies with 10 to 49 employees: the loan can reach €50,000

For companies with more than 50 employees: the state may grant advances capped at 3 months of turnover.

The assumption of the rents

In order to encourage lessors to waive a portion of their rents in solidarity for administratively closed companies with less than 250 employees, those who agree to waive any of their October, November or December 2020 rents will receive a 30% tax credit of said rent.

If these measures constitute an opportunity for survival for companies heavily impacted by reconfinement, the trade union Les Entreprises Du Voyage demands an immediate reinforcement of these measures. In particular, the EDVs are calling for the abolition of the ceilings for assessing eligibility for the solidarity fund. As regards the EMP, the union is calling for an extension of at least one year of the period of suspension of repayment and for the loan to be converted into quasi-equity.

Finally, a special information number on emergency measures for companies in difficulty has been set up to advise you on the aid to which you are entitled: 08 06 00 02 45. It completes the existing internet platform.

Octave PAVIET-SALOMON

Octave PAVIET-SALOMON

Marketing & Communication Manager for Swikly. I regularly write educational and informative articles and documents for rental professionals.

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