COVID-19 Summary of Government Financial Support Europe and Middle East - 08 October 2020 - Squire Patton Boggs
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COVID-19 Summary of Government Financial Support Europe and Middle East 08 October 2020 Version 20 squirepattonboggs.com 014-5096-7924/1/EUROPE
COVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
Financing Facility Support
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Exceptional state The state has provided a guarantee • It is available to all legal entities The loan must: • The guarantees will be • The process can start
guarantee of €300 of up to €300 billion (in principal, and physical persons having an • Provide a minimum grace period of 12 issued and managed by now.
billion for loans to interest and ancillary costs including economic activity and months and an option for the borrower at Bpifrance Financement
guarantee fees) for all new loans registered with the SIRENE. It the end of this period to amortise it for an SA on behalf of the
businesses
granted by credit establishments and is not available, however, to: additional period of up to five years (with government.
More information financing entities or via crowdfunding • Businesses subject to possible exceptions for companies with a • In most cases, the
can be found here. intermediaries (crowd lending) insolvency proceedings as at large number of employees (5000 or more) guarantee is granted
between 16 March 2020 and 31 31 December 2019 (unless a or turnover (greater than 1.5 billion)). automatically, once
December 2020. recovery or safeguard plan is in notified to Bpifrance.
• Be unsecured (with some exceptions for
The guarantee can cover several place prior to the granting of the large companies. • For large companies,
loans to the same borrower, in which loan) (i.e. companies
case it will enter into force in • Eligibility to the guarantee is subject to the
• Credit establishments aggregate loans and other credit facilities employing 5000
chronological order. persons or more or with
• Financing entities granted earlier to the borrower not having
fallen below their level as of 16 March 2020 a turnover greater than
• Real estate civil companies 1.5 billion) a case-by-
(with a number of exceptions, in (not taking into account scheduled
repayments under such loans/facilities). case review will be
particular with respect to real performed by the
estate civil companies set up • The guarantee fee payable, which varies Minister of Economy.
for development programs or according to the (ultimate) length of the
real estate civil companies at loan, the number of employees and the size
least 95% owned by real estate of the business:
collective investment schemes For businesses (i) employing more than 250
(OPCIs), real estate investment persons or (ii) with a turnover of more than
companies (SCPIs), €50 million and a balance sheet greater
professional real estate than €43 million:
collective investment schemes
(OPPCIs) or listed real estate ‒ 0.50% for the first year
investment companies (SIICs) ‒ 1% for the two following years
• There is a limit to the amount of ‒ 2% for the next three following years
the aggregate loans that can be For other businesses (with possible
granted, depending on the date exceptions for large companies):
of the creation of the borrower
(before or after 1 January ‒ 0.25% for the first year
2019): ‒ 0.50% for the two following years
‒ For companies created as ‒ 1% for the next three following years
from 2019, the maximum
A period of two months must lapse before a
amount corresponds to the
call under the guarantee (with possible
estimated employment costs
exceptions when the State guarantee is
for the first two years or, if
authorised by a decision of the European
Commission).
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
more favourable, 25% of The guarantee will only cover part of the
their 2019 turnover. loan:
‒ For companies created ‒ 90% for businesses that employ less than
before 2019, the maximum 5,000 persons and have a turnover of
amount corresponds to 25% less than €1.5 billion
of their turnover for the year ‒ 80% for businesses with a turnover
2019 save for specific greater than €1.5 billion but less than €5
businesses: billion
‒ Innovative businesses ‒ 70% for others (with possible exceptions
(complying with certain for large companies).
criteria) benefit from a
maximum, if more
favourable, set at twice the
amount of employment
costs borne in 2019.
‒ For companies registered,
at the date of the grant of
loan, under a French
industry classification
(NAF) code and carrying
out one of the activities
listed in the relevant order
(e.g. travel, restaurant,
libraries, museums,
lodging), the maximum
amount corresponds to the
three best months of
turnover for the year 2019
or of the last available
year.
‒ For companies that sell
parts intended for the
manufacture of aircraft or
of major equipment
mounted on aircraft,
thereby generating at least
15% of their turnover of
the last financial year, the
25% threshold is increased
by an amount
corresponding to the value
of 2 years of stock (the
higher value between
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
twice the 2019 stock or
twice the average of the
2018 and 2019 stocks)
‒ For companies that
acquire parts from the
companies hereinabove,
the 25% threshold is
increased by an amount
corresponding to the value
of the stock they intend to
purchase from them until
31 December 2021.
• For loans granted to companies
with more than 4,999
employees or with a turnover of
€1.5 billion or more (both
criteria as at 16 March 2020),
the decision will be taken on a
case-by-case basis..
Exceptional state The state has provided to credit • The assignor must be a legal • The assigned receivables must have arisen • The guarantee is • The scheme is
guarantee for institutions and financing companies entity or a natural person acting under confirmed orders automatically granted available since 1st
funding operations (sociétés de financement) a in the course of its/ his • The receivables must be assigned no longer after notification to August 2020.
guarantee for funding operations by professional activity that is not: than 30 days after the issue of the Bpifrance, subject to its
by way of
way of assignment of receivables ‒ a credit institution or a corresponding orders being compliant with
assignment of entered into between 1 August 2020 the criteria hereof (non
receivables - financing company (société • The funding operations must be free from
and 31 December 2020. The ceiling de financement) exhaustive).
Factoring of the guarantee equals to: any other security interests than the state
‒ subject to an insolvency guarantee • If the funding exceeds
‒ 12 months of cash flow needs if proceedings (en liquidation €300 million, the
the company has more than 250 • The anticipated deadline of such funding assignee shall send
judiciaire ou en période operations cannot be later than 30 June
employees or has a turnover d’observation d’une the project of the
exceeding €50 million and a 2021 and cannot be later than 60 days after factoring agreement to
sauvegarde ou the latest of the dates initially planned for
balance sheet total exceeding €43 redressement judiciaire) as the Treasury (Trésor) at
million the issue of the invoices relating to the least 5 days before
at 31 December 2019 assigned receivables (provided such date is
‒ 18 months of cash flow needs signing.
• The assignee must be a credit known by the assignee).
otherwise institution or a financing • The guarantee shall be called no later than
company (société de 30 September 2021
financement)
• The guarantee fee payable, which varies
according to the (ultimate) length of the
funding operation, the number of employees
and the size of the business:
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
‒ For businesses (i) employing more than
250 persons or (ii) with a turnover of
more than €50 million and a balance
sheet greater than €43 million:
‒ 0.50%
‒ For other businesses:
‒ 0.25%
• The guarantee will only cover part of the
loan:
‒ 90% for businesses that employ less than
5,000 persons and have a turnover of
less than €1.5 billion
‒ 80% for businesses with a turnover
greater than €1.5 billion but less than €5
billion
‒ 70% for others.
State equity loans Until 31 December 2020, the State is • It is available to very small size • Equity loans provide for a grace period of 12 • By application to the • The process can start
(prêts participatifs) entitled to grant equity loans (prêts entities and small size entities months and must be repaid within 7 years at CODEFI (departmental now.
for very small and participatifs) to very small and small (less than 50 employees) the latest. committee for the
enterprises which have not having an economic activity • The rate of interest applicable to equity examination of
small enterprises
benefitted from a State guaranteed and registered with the SIRENE loans is 3.5% per annum business financing
loan or for which the amount of such which: problems).
loan was insufficient. ‒ Are directly and fully owned • Equity loans will be
by one or several physical granted and managed
persons; by Bpifrance
‒ Have been refused a State- Financement SA on
guaranteed loan (including behalf of the State.
after a mediation process);
‒ Evidence real prospects for
operational recovery; or
‒ Are up to date with their
social security and tax
obligations or as relevant
have obtained a tax and
social security liabilities
clearance plan.
• It is not available, however, to:
• Businesses subject to
insolvency proceedings as at
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
31 December 2019 (unless a
recovery or safeguard plan is in
place prior to the granting of the
loan);
• Real estate civil companies;
or
• Companies active the
fisheries or aquaculture
sector or in the primary
production of agricultural
products.
• The amount of the equity
loan varies according to the
number of employees:
• €10,000 for enterprises with
less 10 employees; or
• €50,000 for enterprises with
less than 50 employees
Repayable advances Until 31 December 2020, the State is • Small-size entities, medium- Subsidised loans may be used only to By application to the • The process can start
and subsidised entitled to grant repayable advances size entities and intermediate- finance investments and working capital CODEFI (departmental now.
loans to small and and subsidised loans for an sized companies (ETIs) requirements. committee for the
medium enterprises aggregate amount of €500 million to between 10 and 4999 Repayable advances must be repaid within examination of
SMEs which have not benefited from employees and a turnover not 10 years at the latest and the maximum business financing
(SMEs) a State-guaranteed loan or for which exceeding €1.5 billion or a problems). The
grace period is 3 years.
the amount of such loan was balance sheet not exceeding €2 decision will be taken
insufficient. billion) which: Subsidised loans must be repaid within 6 on a case-by-case
years at the latest and the maximum grace basis by the Minister of
The financial support will be in the ‒ have been refused a
period is 12 months.
form of a repayable advance if the State-guaranteed loan Economy, after
amount is equal to €800,000 or less (including after a mediation • The rate of interest applicable to repayable obtaining the opinion of
and a subsidised loan if the amount process) advances is 1% per annum. The rate of the CODEFI.
is greater than €800,000 or if the interest applicable to subsidised loans The repayable
‒ evidence real prospects for
loan is granted in addition to an varies according to the (ultimate) length of advances and
operational recovery
existing State-guaranteed loan. the loan: subsidised loans will be
‒ were not subject to granted and managed
‒ 1,5% p.a. for loans for 3-year loans
insolvency proceedings as at by Bpifrance
31 December 2019 (unless a ‒ 1,75% p.a. for loans for 4-year loans
Financement SA on
recovery or safeguard plan is ‒ 2% p.a. for loans for 5-year loans behalf of the State.
in place prior to the granting
‒ 2,25% p.a. for loans for 6-year loans
of the loan)
• There is a limit to the amount of
the financial support that can
be granted, depending on the
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
date of the creation of the
borrower (before or after 1
January 2019):
‒ For companies created
before 2019, the maximum
amount corresponds to 25%
of their turnover for the year
2019. Innovative businesses
(complying with certain
criteria) benefit from a
maximum, if more
favourable, set at twice the
amount of employment costs
borne in 2019
‒ For companies created from
2019 onwards, the maximum
amount corresponds to the
estimated employment costs
for the first two years
Public reinsurance Government support of credit Small-size entities and • Only applies until 31 December 2020.
of insurance cover insurance to protect inter-company medium-size entities
credit.
The Caisse centrale de réassurance
will implement a reinsurance
mechanism up to an amount of €10
billion.
Public reinsurance To enable French exporting Exports to EU countries and Maximum amount of scheme is €5 billion.
mechanism for companies to continue to use credit high-income OECD countries
short-term insurance to secure international are now eligible.
outstanding export operations, the public reinsurance
mechanism Cap Francexport will be
credit insurance extended.
Aid to very small Payment by a solidarity fund – First VSEs, freelancers, micro- Operated since before 1 February 2020. From 1 April, all • The process for the
enterprises (VSEs) level aid: Compensation of the loss traders and liberal professions. Have not initiated insolvency proceedings relevant companies will financial aid
and independent of revenue up to €1,500 for March before 1 March 2020. be able to make a application can start
and April 2020 simple filing on the tax now.
workers funds Make less than €1 million in turnover.
Additional aid between €2,000 and site to receive aid of up • Payment date not
More information Have a taxable annual profit of less than to €1,500. This amount specified.
£5,000 for the most difficult
can be found here, situations, and additional support €60,000. will be tax exempt.
here and here. may be granted to avoid bankruptcy Have less than 10 employees. From 15 April,
on a case-by-case basis. companies
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Not be part of a group of companies that experiencing the
would globally exceed the above thresholds. highest level of
For the first level of aid: difficulties will be able
to obtain, on a case-by-
Have been shut down by an administrative case basis, additional
order. aid of €2,000.
Have experienced a loss of turnover in For water, gas and
March 2020 compared to 2019: (i) for electricity bills,
companies created before 1 March 2019 the companies can send an
comparison is made with March 2019; (ii) amicable deferral
for companies created after 1 March 2019, request without delay
the comparison is with the average monthly by email or telephone
turnover over the period between the date to their supplier.
of the creation of the company and 1 March
2020; and (iii) for entrepreneurs who have
benefitted from sick or maternity leave in
March 2019 the comparison is made with
the average turnover between 1 April 2019
and 29 February 2020.
Have experienced a loss of turnover in April
2020: (i) for companies existing before 1
March 2019 the comparison is made, at the
choice of the company, with the turnover of
April 2019 or the average turnover for the
year 2019; and (ii) for companies created
after 1 March 2019 comparison is by ratio to
the average monthly turnover over the
period between the date of the creation of
the company and on 1 March 2020).
For the additional aid:
‒ Employ at least one employee
‒ Be unable to settle one's debts in 30 days
and the amount of their fixed charges,
including commercial or professional
rents, due for the months of March and
April 2020;
‒ Be denied a (reasonable) cash loan by
their bank for which it applied after 1
March 2020.
Aid to very small Deferred payment of water, gas and Businesses and self-employed See previous column. Businesses • Already effective.
enterprises (VSEs) electricity bills. The deferred individuals satisfying the encountering difficulties
payments will be spread evenly solidarity fund eligibility paying their water, gas
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
and independent across the payment due dates for conditions (see the previous and electricity bills can
workers bills issued after the last day of the point). immediately email or
month following the date of the end Businesses continuing to phone their water, gas
More information of the state of health emergency. and electricity suppliers
can be found here operate through insolvency,
Payments will be spread over a court-ordered recovery or to request an amicable
and here. minimum period of six months. liquidation proceedings, deferral of payment.
With respect to commercial rent ; following receipt of a certificate Businesses confirm that
prohibition to apply of financial from one of the receivers they satisfy the
penalties, damages, execution of an appointed by the court that eligibility conditions
avoidance clause or penalty clause, initiated the proceedings. when they make the
or activation of guarantees or deferral request.
deposits for failure to pay rent or For the rent of
related service charges on these commercial premises,
professional and commercial on 20 March, the main
premises. This prohibition applies to federations of landlords
rent and service charges due for called their landlord
payment from 12 March 2020 to two members to suspend
months after the date of the end of rent for the April
the state of health emergency. deadline and for the
subsequent periods of
cessation of activity
imposed by the decree.
With respect to retail
outlets in shopping
centres, the National
Council of Shopping
Centres (CNCC) has
already asked its
landlord members to
make rent and service
charges invoiced for the
second quarter payable
monthly and to
temporarily suspend
payment due on rent
and service charges for
the month of April.
The same commitment
is expected from banks
and insurance
companies that own
business premises
used by SMEs. The
members of the French
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Insurance Federation
(FFA), in particular,
have committed to
defer the payment of
rent for SMEs and
VSBs in sectors where
business has been
interrupted in
accordance with the
order of 15 March
2020. There is no
commitment from
private landlords.
Aid in the catering, The payments by the solidarity fund For the solidarity fund business For exemption of social security For the exemption of Announced on 24 April
tourism, events, (see above) are maintained after in catering, tourism, events, contribution. It will automatically apply to social security and 14 May.
sport and culture May 2020 and the second aid may sport and culture sectors with VSE and SME businesses, whether or not contributions for SME Implementing decree
sectors be up to €10,000. up to 20 employees and €2 they have already paid their dues. and VSE. It will pending.
An exemption from social security million in turnover. In addition, intermediate-sized companies automatically apply to
More information all of these businesses,
contributions during the mandatory For the exemption of social (ETIs) and large companies in these sectors
can be found here. closure period, from March to June security contributions VSE and which do not benefit from automatic whether or not they
or any longer time imposed by the SME. exemption will be able to obtain long have already paid their
regulation. Or deferred payment and spreads of deferred social and tax charges dues.
For long spreads of deferred
debt cancellation. social and tax charges and, on a case-by-case basis, request debt For, ETIs and large
In addition to the employers' payments of social security cancellations according to their financial companies to be
contribution exemptions set out contribution or debt situation. requested on a case-
above, there will be a contribution cancellation: intermediate-sized Eligibility can be assessed on a dedicated by-case basis,
credit equal to 20% of the wages companies (ETIs) and large one stop shop platform https://www.plan- depending on their
paid since February. This companies. tourisme.fr/ financial situation.
contribution credit will be chargeable For cancellation of rent: VSEs
on all the contributions due by the and SMEs.
company and will support the
resumption of activity. Eligibility can be assessed on a
dedicated one stop shop
Possible postponement on the CFE platform https://www.plan-
tax. tourisme.fr/
Exceptional state guarantee for
loans will be put in place its
conditions will be more favourable
than the guarantee set out above
with higher ceiling, the ceiling
"Seasonal EMP" will be extended to
the best 3 months of 2019.
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Cancellation of rent and fees for
occupying the public domain due to
national lessors (State and
operators) during the closure period.
Possible tax reduction on tourist tax
by local authorities.
Businesses will be able to continue
to benefit from Partial activity (see
below) until the end of 2020 at the
conditions that prevailed during the
confinement period. They may
continue to benefit from the new
terms and conditions into 2021.
With respect to meal vouchers
provided by employers to their
employees, the ceiling will be
increase to €138 (instead of 19) and
they can be used on weekends in
restaurants until the end of 2020.
Aid in the catering, Increase of the financial capacity of VSE SME and Medium sized As regards the loan for tourism, the Apply online Partly effective and
tourism, wellbeing loan for tourism (Pret tourisme) by company in the catering, investment must be co-financed at 50% by https://mon.bpifrance.fr/ covering a period
events, sport and the Bpifrance (increased globally to tourism, wellbeing events, sport other means either by contribution of the authentication/?TAM_O until 2023.
culture sectors €1 billion) to finance assets , and culture sectors. shareholders or a bank loan of at least 2 P=login&ERROR_COD
renovation, transfer of business or Excluded companies are those years or crowdfunding E=0x00000000&URL=
Increased financial cash flow and working capital for an %2Fmon-
that are insolvent or under an Eligibility can be assessed on a dedicated
capacity for loans amount between €50,000 and €2 insolvency procedure. one stop shop platform https://www.plan- espace%2F#/formulaire
and equity funding million with a deferred tourisme.fr/ /hotellerie
reimbursement of up to 24 months Excluded transaction : purely
more information
and by maturity up to 10 years. financial transaction such as
here and here. cash out etc.
Short term urgency loans ("fonds
d'urgence") financed by regional and Some the loan and investments
authorities with a co-financing by the are industry specific (e.g.
Banque des territoires for overseas tourism, or restaurants ) or
territories and Corsica local.
Loans by Caisse des Dépots Eligibility can be assessed on a
(globally €500 millions) and long dedicated one stop shop
term loans by the Banque des platform https://www.plan-
territoires (globally €500 millions) to tourisme.fr/
complement bank loans with a view
to repositioning the industry.
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Equity investments by Bpifrance and
Banque des territoires.
Aid to traders Exceptional financial assistance. All traders and craftsmen that All traders and craftsmen that are active as This aid will be paid Already effective.
(commerçants) and The aid will correspond to the are active as of 15 March 2020 of 15 March 2020 and were registered automatically by the
craftsmen amount of additional retirement and were registered before before January 1, 2019. URSSAF and will not
(artisans) : funds contributions paid by traders and January 1, 2019. require any action from
craftsmen on the basis of their 2018 the self-employed
income and may go up to € 1,250. workers concerned.
The amount of this aid will also be
exempt from income tax, as well as
social security contributions.
This exceptional aid is in addition to
all the measures taken in favour of
the self-employed by the government
since the start of the crisis.
Special financing of €80 million financed by the PIA, More information can be found More information can be found here. The guarantees will be Already effective.
start-ups under the managed by Bpifrance, shall be here. issued and managed by
aid for innovation allocated to finance bridges between Bpifrance Financement
programme (PIA), fundraising. This funding, which can SA on behalf of the
range from €100,000 to €5 million, government
taking the form of takes the form of CBs, with possible
convertible bonds access to capital, and must be co-
(CBs), co-financed financed by private investors. In
by private partners total, with leverage, the French Tech
More information Bridge will mobilise €160 million in
equity for French start-ups.
can be found here.
Special aid to The "PGE Support Innovation" is Innovative start-ups, SMEs, Initially for companies that classified as The guarantees will be Already effective.
innovation innovation-specific loan backed by mid-caps "innovative" with less than 5,000 employees issued and managed by
companies: State the State guarantee, finances: The and young innovative and achieving a turnover of less than 1.5 Bpifrance Financement
guaranteed for loans amount of the loan granted until 31 businesses. billion euros in France if: over the past 5 SA on behalf of the
December, 2020 inclusive is limited years, it has one of the following: government.
to business. More to one or other of the following
information can be ‒ received public support for innovation, in
criteria: particular individual aid from Bpifrance,
found here.
‒ 25% of 2019 net sales, or of the the list of which is fixed by decree of the
last financial year ended; or Minister for the Economy;
2 times the amount payroll in France, ‒ raised funds from French or foreign
excluding employer contributions for investors specializing in innovative
2019 or the last available year. For companies (seed funds, venture capital
companies created since January 1, funds, growth capital funds, etc.), or
2019: France's estimated payroll ‒ was accompanied by an incubator
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
over the first two years of activity, Since 8 May this also applies to young
excluding employer contributions innovative business that are: SMEs; less
than 8 years old; independent and make
R&D expenses up to a minimum of 15% of
the tax deductible expenses for 2020
financial year.
Business have to experience economic
difficulties linked to the health crisis.
Loans to SME Loans without guarantee, without • 12 months' minimum activity. On the Bpifrance website or by telephone. The process can start
real collateral on the assets of the • All business sectors, except now.
More information
company or its manager, are: exclusions (SCIs, financial
can be found here.
‒ Prêt Rebond (bounce-back loan), intermediation companies,
a loan between €10,000 and property development and
€300,000, subsidised over a rental companies, and
period of seven years with two agricultural companies with a
years of deferral turnover of less than €750,000).
‒ Prêt Atout (asset loan), up to €5 • Prêt Rebond:SMEs
million for SMEs and €30 million • To finance cash requirements
for mid-sized companies, granted linked to the economic situation
over a period of three to five years
with deferred amortisation • Increase working capital
requirements
From 24 March 2020, suspension of
the payment of loan maturities • Intangible investments: costs of
granted by Bpifrance, for a period of upgrading to standards
six months; (environment, security, etc.),
recruitment and prospecting
For Bpifrance customers, costs, etc.
mobilisation of all invoices and
• Tangible investments with low
granting of a cash credit
pledge value: equipment
representing 30% of the volumes
designed/produced by the
mobilised.
company for its own needs (IT
equipment, etc.)
• Prêt Atout:VSEs, SMEs and
Midcaps
• To finance cash shortage or an
exceptional increase in WCR,
linked to the economic situation
Other Financial Support
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Partial activity To prevent firing employees, it is All companies for the following The application must contain: • The employer should The response takes
(French version of possible for the employer to reduce employees: The reasons for changing to part-time work inform and consult with 48 hours.
furlough) the working hours of employees. ‒ Full-time and short-term (notably reduction in business, full or partial CSE, and ask the
For the hours not worked, the contract shutdown or impossibility to organise social DIRECCTE. By way of
More information exception, the opinion
employee is paid an indemnity of ‒ Apprentices distancing).
can be found here. of the CSE can be
84% of its net hourly salary (or 100% The measures taken to mitigate going to
of SMIC) by the employer. The ‒ Part-time workers transmitted within two
part-time work months of the
indemnity is exempted from social ‒ Temporary workers
security contribution except GSG The provisional duration and the number of application.
‒ VRP hours requested Contractual hours that
and CDRS (or when the latter do not • Within 30 days of the
apply a sickness contribution). ‒ Homeworkers and exceed the 35 hour week will now be decision to resort to
childminders indemnified in cases of partial activity. Until partial work, the
The employer may decide to pay a now, indemnification could cover hours
‒ Employees under a lump sum employer must make
higher indemnity, but starting from below 35 hours/week only.
agreement. the request here.
1 May 2020 where part of the gross
remuneration exceeds €4,849.17 It does not apply to employees The number of employees affected • For employers not
(i.e. 70% of four times the minimum that are expatriates outside of Until 25 April 2020, partial activity was established in France
statutory salary, SMIC) this is now France, except where they are supposed to cover a whole service or the relevant URSSAF
subject to social security prevented from returning to department. Since 25 April, it is possible to is that of Alsace:
contributions as normal salary. France or employees that are place one individual only in partial activity or Centre national firmes
seconded in France. to implement it on a collective basis, but étrangères (CNFE).
The employee has their work
temporarily suspended, but for It does apply to the employees with a non-uniform distribution of hours
benefits and rights, the employee is where their employer, a foreign (subject to a company's agreement or a
considered as if working. company, has no establishment favourable opinion of the CSE in the
in France provided that (i) the absence of unions).
The employer can benefit from an
allocation from the Agence de employee is registered under Senior executives (cadres dirigeants) may
services et de paiement (ASP). the French social security be placed in partial activity from 25 April
From 1 June 2020 the allocation has system and has a legal 2020, but only in the event of temporary
been lowered to 85% of the employment contract private closure. A decree shall bring more details
indemnity paid to the employee, the with the foreign company; and on financial cover.
(ii) the employer, a foreign
employer will be reimbursed 60% of As of 1st May 2020, parents forced to stay
gross salary, instead of 70% company, is subject to social
at home to look after their children are
previously (still within the above contributions and contributions
deemed vulnerable because of their state of
ceiling of 4.5 times the SMIC) except and unemployment insurance
health, as well as people living with them,
for industry sectors which activity is obligations under legislation
and are switched to a partial activity
restricted by the regulation (e.g. scheme.
catering, tourism and culture
sectors) that still benefit from 100%
allocation.
The portion of contractual hours that
exceed the 35 hour week will now be
indemnified in cases of partial
activity. Until now, indemnification
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
could cover hours below 35
hours/week only.
The maximum period for partial work
has been extended to 12 months.
The annual quota of compensable
hours has been set at 1,607 hours.
Assistance to Possibility to resume mutual All.
employers: End of terminations or collective
the freeze on redundancy procedures which had
termination and been frozen from 12 March until 25
April 2020.
redundancies
Assistance to Unoccupied employees who so wish This system requires
employers; can be transferred temporarily to a the agreement, each
employee sharing company faced with a shortage of time, of the employee
staff. The employee then keeps his concerned and of the
employment contract and 100% of two companies.
his usual salary, paid by his original Simplified models of
employer. The company that the provision
temporarily receives him reimburses agreement between
this salary to the original company. companies and of the
addendum to the
employee's
employment contract
are available on the
website of the Ministry
of Labour.
Assistance to Exempt from social security The lump sum allowance would be exempt
employers contribution, communications from social security contributions up to:
allowances paid to employees. ‒ €10/month for one day of home-working
every week
‒ €20/month for two days of home-working
every week
‒ €30/month for three days of home-
working every week
‒ €40/month for four days of home-working
every week
‒ €50/month for five days of home-working
every week.
When the amount paid by the employer
exceeds these limits, exemption from social
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
security contributions may be allowed,
provided that the employee can prove the
reality of the professional expenses
incurred.
Daily allowance if • A parent with an eligible children • Employees. • One of the two parents of (i) a child under • Filing the documents
children are to be may declare that they are kept at • Independent workers. the age of 16 on the day of the start of the online on the social
kept at home home, entitling them to daily cessation or (ii) a child with disabilities security website. For
compensation from the first day off. under the age of 18 and taken into the care the employee, there
More information For employees, the relevant period of a specialised establishment. has to be an affidavit of
can be found here. does not accrue any paid holiday. • For employees, the parent must not be able the employer
• As of 1 May 2020, and regardless to work from home. (https://declare.ameli.fr/).
the starting date of the sick leave,
employees who were on exceptional
sick leave for reasons of
"vulnerability" or "cohabitation with a
vulnerable person" or "care of
children under the age of 16" will
automatically switch on the partial
activity scheme.
Special assistance to • The accelerated payment of PIA • Companies that already benefit • PIA or the aid for innovation plan already.
start-ups already allocated, but not yet paid, from the PIA or the aid for
for a total estimated amount of €250 innovation plan.
million, by paying in advance the
More information tranches not yet paid for the project
can be found here. that have already been approved.
• For companies receiving aid in the
form of repayable advances or
advances with royalties, the next
due dates for reimbursements are
postponed for up to six months.
Postponement of • Up to three months' postponement • Companies or independent • For companies, either Already in place.
social security of the payment of whole or part of workers (but not micro- by lowering the bank
payment due in social security charges due on 15 entrepreneurs). transfer or via the DSN.
March, April or May March, 5 April or 15 May 2020. • Automatic for
• Independent workers, craftsmen, independent workers
More information traders and liberal professions can for the payment due in
can be found here. ask for (i) additional postponement March or April and May
and/or (ii) a change of the amounts and upon request
to be paid as a result of the online with their social
reduction in revenue and/or (iii) for security organisation.
social assistance and exceptional
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
financial aid for the payment of their
social security charges.
Postponement of • Possibility to request the • All companies and independent • Not having paid dividends. • Companies that have
direct tax payments postponement without penalty of the workers. already paid their
settlement of their next direct tax March instalment and
instalments (corporate tax no longer have the
instalment, payroll tax, etc.). possibility of opposing
the SEPA direct debit
with their online bank,
but they can apply for a
refund from their SIE.
• Independent workers
may change the
amount of tax payment
online on the tax
authority's website or
postpone payments up
to three months.
• It is possible to
suspend monthly
contracts for the
payment of business
tax (CFE) or property
tax (taxe foncière),
either online or by
contacting the Service
Deduction Centre
(Centre Prélèvement
Service). The balance
will be levied on the
yearly deadline, without
penalty.
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
What help is What does the help entail? Which companies are What is the criteria (if any) for How to apply When will the finance
available? eligible? applying? be available?
Special aid on cash • The internal consumption tax on
flow for road energy products (TICPE), currently
transport companies reimbursed to operators of road
freight transport every six months,
will be reimbursed quarterly instead.
• The next instalment of the road
vehicle tax (TSVR) 2020, which had
to be paid no later than 1 September
1, now has until 1 December 2020 to
pay.
Accelerated refund • Companies that benefit from one or • The company has to
of tax credit or VAT more tax credits refundable in 2020 file its tax credit and, in
credit can request the reimbursement of the absence of a filing
the balance of the available of income statement
receivable, after deduction, where result, indicate the
applicable, from their corporate remainder of corporate
income tax due for the FY 2019, income tax due.
without having to wait for the filing of
their tax return.
• Request for reimbursement of VAT
credit will be handled more quickly
by the tax authorities.
Additional • Additional delays can be granted for • All companies and independent • Filing of relevant
postponement for the payment of taxes and the workers. documents with the
payment of social employer's share of social security local Commission des
contributions. chefs de services
security charges and
• This does not include the financiers (CCSF).
taxes
employee's part of social security
More information contribution, nor taxes withholding
can be found here. income tax.
Credit mediation • Credit mediators of the Banque de • All companies and businesses. One can refer to the mediator through filling in
France and the instituts d'émission a form and providing documentation.
More information en Outre-mer (for overseas
can be found here territories) assist companies in
negotiation of new schedules for
repayment of loans.
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
Key Contacts
Antoine Adeline Philippe de Saint-Bauzel
Partner, Paris Partner, Paris
T +33 1 5383 7400 T +33 1 5383 7408
E antoine.adeline@squirepb.com philippe.desaint-bauzel@squirepb.com
Véronique Collin
Jean-François Rage
Partner, Paris
Partner, Paris
T +33 1 5383 7406
T +33 1 5383 7581
E veronique.collin@squirepb.com
E jean-francois.rage@squirepb.com
Stephanie Faber
Of Counsel, Paris
T +33 1 5383 7400
E stephanie.faber@squirepb.com
squirepattonboggs.com 014-5096-7924/1/EUROPECOVID-19: Summary of Government Financial Support
to Businesses as at 29 September 2020
France
Local Connections
Global Influence
squirepattonboggs.com
squirepattonboggs.comYou can also read
