Faced with the disadvantages of the confinement, France government returned this Thursday, on the side of the economy, announcing several measures to assist companies, so owners of commercial premises will show consideration with their tenants.
According to Bruno Le Maire, those who will give up at least one month’s rent between October and December for certain companies will benefit from a tax credit. This was announced during a press conference where the specification for the new measures of confinement in France was revealed.
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The companies that are expected to benefit include those less than 250 employees which are administratively closed like hotel, cafes, restaurants, and the culture industry, the Minister of the Economy revealed the relieve while stating that lessors will be able to benefit from a tax credit representing “30% of the number of abandoned rents”.
Bruno Le Maire annonce qu’un “crédit d’impôt incitant les bailleurs à annuler une partie de leurs loyers” sera introduit dans le projet de loi de finances en soutien à certaines entreprises pic.twitter.com/Re6Jx4jtPC
— BFMTV (@BFMTV) October 29, 2020
“We have been pushing for months to deal with the rent problem. It’s a victory”, president of the Confederation of Small and Medium-Sized Enterprises (CPME) François Asselin reacted to an AFP question.
Bruno Le Maire announced that government is willing to commit a total of 15 billion euros in aid per month of confinement in order to limit the failures of companies already weakened by the first wave of the coronavirus.
“This confinement is a blow to all the businesses that will be closed as of tomorrow (Friday). I am thinking in particular of the 200,000 businesses that will be forced to close. We want to tell them that the economic support of the State will be even stronger than during the first confinement”, the minister said.
Bruno Le Maire also announced that the solidarity fund for companies, which had been set up during the first confinement to preserve SMEs will be reactivated and extended to companies with up to 50 employees, in order to compensate for closures due to the confinement measures.
“All businesses that will be closed by the administrative decision may receive compensation of up to 10,000 euros. This will no longer affect companies up to 10, but up to 50 employees.
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“approximately 6 billion euros for the Solidarity Fund, 7 billion euros for partial activity, one billion euros for exemptions from social contributions, one billion euros to cover a part of the rents of companies”, the minister explained.
“The closed businesses as well as the restaurants will not be able to welcome the public but will be able to continue to operate for delivery activities and the withdrawal of orders”, France Prime Minister said of restaurants.