French Government financial support to cover fixed costs
The enforcement decree regarding the financial support to cover fixed costs for hospitality and tourism sectors has been published on March 24, 2021.
The main items are the following:
- Entities eligible to French solidarity fund for January and/or February 2021
- Turnover decrease in January and February 2021 must be higher than 50 % as compared to the same period in 2019
- Entities must have been incorporated before January 1, 2019
- The Gross Operating Profit (GOP) must be negative for the cumulated period January February 2021
- The monthly turnover (January and February 2019) must be higher than 1m€ or the average turnover must be higher than 12m€ in 2019 (for the company or the group)
The financial support will be equal to 70% of the negative GOP or 90 % for SMEs (as defined by rule CE n°70/2001).
The financial support is capped to 10m€ for the first semester of 2021.
The Gross Operating Profit must be computed by a French Chartered Accountant based on the general ledger and the trial balance for the eligible periods.
January & February 2021 financial support can be requested after a 15 days period following the deposit of the February 2021 solidarity fund.
The following documents will have to be sent along with the request:
- A sworn statement that the company is eligible for this financial support.
- A confirmation letter from a Chartered Accountant regarding: the January and February 2021 GOP and turnover and the 2019 same period turnover.
The confirmation letter will enforce some French Chartered Accountant diligences in relation with the GOP computation.
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