The November 2020 lockdown severely impacted small and medium-sized businesses. Hair salons and beauty institutes were forced to close. In response to this administrative closure, the State implemented certain aid measures to compensate for the lack of income and to prevent a multitude of businesses from closing. Here are the types of aid you may be eligible for.
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THE SOLIDARITY FUND
- What does it consist of?
The Solidarity Fund is state aid to help SMEs during lockdown. Businesses subject to administrative closure, such as hairdressers and institutes, will receive aid equal to the amount of lost turnover, up to a limit of €10,000. Turnover from distance selling activities with in-store pickup or delivery is not included in the total turnover.
- Who is it for?
SMEs with fewer than 50 employees and an annual taxable profit of less than €60,000 are eligible for the Solidarity Fund. The business must demonstrate a loss of turnover of at least 50% in November and have started its activity before March 10, 2020.
This applies to small businesses, micro-entrepreneurs, self-employed individuals, and liberal professions.
- How to benefit from it?
To benefit, simply visit the website impots.gouv.fr and fill in: SIREN, SIRET, bank details (RIB), turnover for the month concerned and for the reference month, declarations, and sworn statements.
The application must be made from the beginning of December to receive the aid for the month of November.
EXEMPTION AND DEFERRAL OF SOCIAL CONTRIBUTIONS
To boost the cash flow of businesses affected by the November lockdown due to the Coronavirus, the State has implemented a system for exemption from certain social contributions and payments, as well as payment assistance.
All administratively closed businesses with fewer than 50 employees are covered by this total exemption from social contributions. You do not need to take any administrative steps; automatic direct debits for November payments will not be processed.
For payments due on November 5 and 15, employers can defer payments of employee and employer contributions. However, ensure that declarations are submitted on the scheduled dates.
How to benefit from contribution deferral?
To do this, simply fill out the online prior request form. If URSSAF does not respond within 48 hours, the request is considered approved.
Unpaid contributions will therefore be automatically deferred, and URSSAF will contact you to establish a debt repayment plan.
THE PGE (State-Guaranteed Loan)
If your business is impacted by the lockdown, you can apply for a State-Guaranteed Loan. You can apply until December 31.
- Who is it for?
Any business can apply, regardless of its size or legal form.
The loan amount can be up to 3 months of 2019 turnover. The PGE rate is 1 to 1.5%.
- What steps to take?
To apply for a PGE, the process is simple: just go to your bank, which will give you a pre-agreement. Then, you need to apply to BPI France, which will send you a unique number. Once you have this unique number, you must communicate it to your bank, which can then release the funds.
- How to repay a PGE?
You have until 2022 to start repaying the loans, and you can spread the repayment over a period of 1 to 5 years.
The cost of the loan guarantee (0.25 to 0.50% of the loan) is not paid by the company for the first 12 months, but the bank defers this cost to the following year.
DIRECT STATE LOANS
If you are not eligible for the PGE, you can apply for a direct loan from your bank. For businesses with fewer than 10 employees, this can be a loan of up to €10,000, and for businesses with 10 to 50 employees, the loan amount can be up to €50,000.
Please note that micro-enterprises are not eligible.
RENT
Your landlord has the option to waive at least one month's rent for October, November, and December. They can then benefit from a tax credit of 30% of the waived rent amount. This tax credit can be combined with the Solidarity Fund.
We encourage you to take all necessary steps so that your hair salon or beauty institute suffers minimally from this period of health crisis and can stay afloat.
