As a result of the coronation measures of the last Consultation Committee, some entrepreneurs have to close their doors or are feared to suffer heavy losses of turnover. The federal and regional authorities will therefore once again be deploying various support measures. Below you will find an overview of the main support measures that you as entrepreneur can call upon. For a more detailed overview we would like to refer you to our schedule.
The federal core cabinet approved last Friday a package of economic support measures to further guide the affected sectors through this period. Among other things, a reduction in social security contributions is provided for the events sector. In addition, the following measures, among others, are provided for:
1 Extension of temporary unemployment
The federal government extends the possibility of recording temporary unemployment for the sectors affected by corona until the end of the first quarter of 2022.
2 Extension and reinstatement of bridging rights.
The self-employed who have to close their business (again) will again be entitled to a double bridging right due to closure, starting in December 2021.
It was also decided to have a single bridging right due to a decrease in turnover for all sectors, for a decrease in turnover of at least 40%.
3 End-of-Year Bonus Hospitality Industry.
A budget of EUR 66 million is released for the hospitality sector. This budget would be used to pay the end-of-year bonuses.
1 Flemish protection mechanism 11
For companies in, among others, the event sector, discotheques, party halls, bus and passenger transport, large vacation homes and youth hostels, travel agencies, cinemas, professional indoor sports clubs, etc., the Flemish protection mechanism is again being used.
The support is 10% of half of the sales the company had in the last quarter of 2019. There is a maximum support of :
- 11,250 eurosfor companies up to 10 employees,
- 22,500 euros for companies with 10 to 49 employees
- 60,000 Eurosfor companies with 50 or more employees.
Companies that are not mandatorily closed must remain active and demonstrate their loss of sales through a double burden of proof : at least 30% loss of sales in the last quarter of 2021 combined with a loss of sales of at least 60% in the affected period. The loss of turnover must be proven by VAT declarations and a certificate from an external accountant.
2 Bridging Loan
The bridge loan is for investments in ventilation, air quality, as well as for renewing stocks or covering fixed costs such as trade rent. The interest rate is 1%. The term of the loan is limited to 24 months for loans up to €50,000 and to 36 months for loans over €50,000. The minimum amount for the loan is 10,000 euros, the maximum amount depends on the size or turnover of the company and can be up to 400,000 euros.
3 Globalization mechanism
As in 2020, a globalization mechanism is being worked out for 2021 for healthy companies that had sales losses of more than 60% over the entire year as a result of the corona measures.
These three measures must be notified to the EU under state aid rules. Final approval will follow in January.
But also in the Walloon (e.g. extra premium for nightclubs) and Brussels Region (e.g. Proxy loan) various support measures are again foreseen.
Want to know which support measure you qualify for? Contact here one of our pro experts.