Flanders
Flanders already had a protective mechanism for companies that saw their turnover fall sharply in August and September. Now there will be the new Flemish protection mechanism (NVB) for loss of turnover between October 1 and November 18. Any entrepreneur who suffers a loss of turnover of at least 60 percent during that period can rely on it. Think of hotels and suppliers or companies in the event or tourism sector.
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Any entrepreneur who suffers a loss of turnover of at least 60 percent can appeal to the new Flemish protection mechanism.
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Because cafés and restaurants are obliged to close for a month, they are automatically entitled to the aid. They don’t have to prove a drop in sales. An exception applies to restaurants that generated more than half of their turnover from take-away from October 19, 2019 to November 18, 2019, such as snack bars. They must demonstrate that they are making a 60 percent loss.
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The support amounts to 10 percent of the turnover excluding VAT during the same period in 2019. Self-employed persons in a secondary occupation receive 5 percent support. For starters, the decrease in turnover is compared with the expected turnover stated in the financial plan.
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The closing premium of EUR 160 per day, which some companies still receive, will be discontinued. This concerns, for example, discotheques and nightclubs. For the period from 1 October, they can appeal to the Flemish protection mechanism.
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Companies can choose to apply for a loss of turnover of at least 60 percent in the period from October 1 to November 15, 2020 or in the closing period from October 19 to November 18, 2020. The maximum support varies according to the chosen period and the size of the company.
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For the reference period from 1 October to 15 November 2020, the maximum amount of aid is EUR 11 250 for companies with fewer than nine employees and EUR 22 500 for companies with 10 or more employees. For the reference period 19 October to 18 November 2020, this is 7,500 and 15,000 euros respectively. The latter arrangement always applies to cafés and restaurants. In addition, the support is limited to 2,250 euros for companies that mainly offer meals and are obliged to use a white cash register, but do not have a registered cash register system.
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The measure can be applied for from the end of November via the website of the Agency for Innovation and Entrepreneurship (VLAIO) and will be added to the existing measures. For a turnover decrease of at least 60 percent in the months of August and September, the Flemish Protection Mechanism can still be applied for until 15 November. Entrepreneurs who have difficulties in paying the rent for their commercial space due to the corona measures can still apply for a commercial rental loan until December 1. Organizations that want to organize events in 2021 have the option to request an advance until 9 November.
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Federal
The federal government is taking four new measures.
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- Crisis bridging right doubles
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Crisis bridging law is a type of unemployment benefit for self-employed persons and assisting spouses who have to cease their activities in whole or in part due to the covid measures. The amounts of this crisis bridging right will be doubled in October and November to 2,583.38 euros for a single self-employed person and 3,228.20 euros for a self-employed person with a family burden. The double benefit can be extended until December. Catering establishments, caterers, nightclubs and fair trade will particularly benefit from this, but also for players from the culture and events sector.
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In addition, the crisis bridging right will be extended to sectors that are directly dependent on the mandatory closed companies and therefore have to stop their activities. An example is a brewer who only supplies cafes. If the affected case has other customers, one can still request the crisis bridging right, but the amounts will not be doubled. Crisis bridging rights must be applied for through the social insurance fund.
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- Relance bridging right extended
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The bridging right to support a restart is set to expire at the end of October, but due to the current evolution it will be extended until December 31, 2020. It offers a minimum income to self-employed persons who can resume their activity but have suffered a loss of turnover, for example due to limited opening hours or a limited number of customers. This measure has already benefited non-food shops, hairdressers, catering and travel agencies.
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The conditions for the bridging right will not change. The self-employed must be active in one of the sectors that have been completely or partially closed for at least a month due to the corona measures and that will remain under pressure when they reopen. They must demonstrate a decrease in sales or orders of at least 10 percent. A single person can receive an allowance of 1,291.69 euros, a self-employed person with a family burden of 1,614.10 euros.
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- End-of-year bonus for catering employees
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