Since the start of the corona crisis, support measures have sprung up like mushrooms - social, fiscal as well as subsidy-related. Among other things, we have the nuisance premium, the compensation premium, the bridging right and the relance bridging right. Recently, the support premium was extended and the Flemish protection mechanism was created. The principle of the commercial lease loan was also extended to the event sector. Below we list the most important measures.
1. Grant
Nuisance premium (Flemish)
The hindrance premium itself can no longer be applied for. Companies that must still remain closed (discotheques, dance halls, etc.) remain entitled to the closure bonus of 160 euros per day until their physical location can be reopened on the basis of a decision by the Security Council.
The support premium (Flemish)
This premium applies to all companies that were eligible for the compensation premium as well as to companies that were able to make use of the hindrance premium and have meanwhile reopened.
That premium is for companies that:
- experience a loss of revenue of at least 60% in a 1-month period from reopening compared to a reference period last year or;
- were allowed to remain open and, as a result of the operating restrictions still in place imposed by the National Security Council, still face a drop in revenue of at least 60% in the period from May 1 to May 31.
In addition, the company must have effectively restarted operations. The support premium amounts to 2,000 euros (self-employed persons in secondary occupation 1,000 euros).
This corona support grant can be applied for until no later than end of August 2020.
The Flemish Protection Mechanism
The Flemish Protection Mechanism was created for companies, with an operating seat in the Flemish Region, that are faced with a decrease in turnover of at least 60% in the period from 1 August to 30 September 2020 compared to the same period in 2019.
The premium is 7.5% of the turnover, excluding VAT, in the months of August and September 2019 and is limited to a maximum of €15,000 per company.
Enterprises that are still compulsorily closed, such as discotheques, cannot make use of this protection mechanism as they still receive the nuisance premium of €160 per day.
The online application will be possible from October with latest deadline November 15, 2020.
Companies that were forced to close from July 29, 2020 due to the corona measures taken by the National Security Council can apply for an advance of up to €2,000. The application must be made by September 30, 2020 via the Vlaio website.
2. Social
Support for employers
Temporary unemployment
Employers who are considered "severely affected" will be able to permanently use the corona system on relaxed temporary unemployment for the period from September 1 to December 31, 2020. These are the employers who belong to a so-called 'severely affected sector', or have used temporary unemployment for at least 20% of the total number of working days in the second quarter. As of today, there is no list of severely affected sectors.
For those employers who are no longer eligible, a transitional regime has been provided by tinkering with the classic system of temporary unemployment for economic reasons. Finally, the unchanged traditional procedures for temporary unemployment due to force majeure and economic reasons remain in force.
Support for the self-employed
The Bridging Right
For the months of September to December 2020 inclusive, self-employed persons who are not yet allowed to (fully) restart their activities by government order will be able to continue to make use of the relaxed bridging right. Think here of discotheques, managers of mass events, ...
Self-employed workers who can demonstrate that they are forced to interrupt their activities because of their dependence on sectors that are still mandatorily closed can also continue to benefit from the relaxed bridging right.
The relance bridging law
Self-employed persons whose activity was still prohibited on May 3 but who have since been allowed to restart and who are still hampered by the Corona virus are, under certain conditions, eligible for the "relance bridging right" for the months of September and October.
They must be able to demonstrate that their activity has a loss of sales or reduction in orders of at least 10% for the second quarter of 2020 compared to the second quarter of 2019 for the month of September, and a reduction of 10% for the third quarter of 2019 compared to the third quarter of 2020 for the month of October.
3. Financial Measures
Commercial lease loan (Flemish)
Tenants who are struggling to pay their rent due to the corona crisis can apply for a trade rent loan online.
On condition that the landlord waives one or two months' rent, the Flemish government grants a loan of up to two months' rent. However, this is subject to a maximum of EUR 35,000 per tenant. The trade lease loan takes the form of a 2-year credit with an interest rate of 2% per annum and must be repaid in full no later than 24 months after the credit is granted. However, repayments should only start six months after the granting.
The scope of the measure is like that of the corona nuisance premium. In addition, since August 17, 2020, companies in the event sector are also eligible.
If you have any questions, please do not hesitate to contact your client manager or our subsidy expert directly. You can reach us at any time on 051 26 82 68 or by e-mail at info@titeca.be.
