Flanders offers protection to entrepreneurs who are severely affected by the new corona measures of the Consultation Committee. After all, some are obliged to stop their activities, others will suffer heavy loss of turnover.
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Flemish Economy Minister Hilde Crevits proposes two protective measures to help financially healthy entrepreneurs to continue to pay their fixed costs, she reports in a press release on Saturday morning. It concerns the Flemish protection mechanism and bridging loans that must be repaid. The measures are still being notified to the EU under state aid rules.
‘Na de strict measures taken to reduce the spread of the coronavirus, entrepreneurs in various sectors will see their turnover fall again’, says Crevits. ‘That is why we propose to protect financially healthy companies through the Flemish protection mechanism, just like in the past twenty months. In addition, we also provide bridging loans that must be repaid in 2 or 3 years. We must protect anyone who is severely hindered by government measures.’
This concerns entrepreneurs in the event sector, discotheques, party rooms, bus and passenger transport, large holiday homes and youth hostels, travel agencies, cinemas or professional indoor sports clubs. The aid amounts to 10 percent of half of the company’s turnover in the last quarter of 2019. There is a maximum aid of 11,250 euros for companies with up to 10 employees, 22,500 euros for companies with 10 to 49 employees and 60,000 euros for companies. with 50 or more employees.
Double burden of proof
Anyone who is obliged to close must not demonstrate a loss of turnover for the current closing period, but must prove the turnover in the reference period in 2019. Other entrepreneurs that are affected, but are not obliged to close, must remain active and demonstrate loss of turnover. In this, Flanders will be stricter than with previous measures. There will be a double burden of proof. That means at least a 30 percent loss of turnover in the last quarter of 2021 in combination with a loss of turnover of at least 60 percent in the affected period.
The loss of turnover must be demonstrated on the basis of the VAT returns and a certificate from an external accountant. It is estimated that this will require approximately EUR 25 million.
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