Coronavirus: Corona support premium

Author: Jonas Verplanken (Legal Expert)
Date:

With this proposal for resolution of the Flemish Government, the closure premium is extended for all companies that are obliged to remain completely closed as a result of the coronavirus measures.

In addition, a support premium is also granted to companies that experience a drop in turnover of more than 60 percent at the resumption after the relaxation of the coronavirus measures.

For whom?

Companies and self-employed persons who had to close down as a result of the corona measures, can already make use of the corona nuisance premium (cf. Infoflash on the Flemish nuisance premium). Companies and their suppliers that are still working or businesses that remain open but suffer a large loss of turnover as a result of the measures are eligible for a compensation premium from the Flemish government. (Refer to the Infoflash on the Flemish compensation premium).

This draft decree amends some aspects of the nuisance premium and the compensation premium and introduces a Corona support premium. This support premium applies to companies within the scope of the corona nuisance premium and the corona compensation premium (whether they have applied for it or not).

Content

Main changes of the Corona compensation premium decree:

  1. Starting self-employed persons who did not have a full occupational income in 2019 will be treated as self-employed persons in their main or secondary occupation in view of the expected occupational income stated in the financial plan;
  2. The prohibition to combine the corona compensation premium with the PMV's subordinated loan is amended so that this prohibition only applies to a subordinated loan exceeding 75,000 EUR.

Main changes of the Corona nuisance premium decree:

  1. The additional closure premium will be granted to companies who are obliged to remain closed.
  2. The additional closure premiums after 8 June will only be paid to companies that are obliged to close down completely as a result of the coronavirus measures.
  3. The initial application for support shall be submitted by 30 June 2020 at the latest.

Corona support premium

This proposal for resolution establishes the corona support premium. This premium is aimed at companies that have a reduction of more than 60% of their turnover in the event of a resumption or restart of their business.

 

The target group are the companies within the scope of the corona nuisance premium and the corona compensation premium (regardless of whether they have applied for these or not).

Only companies with an active business conduct during the resumption period are eligible for this flat-rate subsidy. As regards the resumption period, a distinction is made between the scope of the corona compensation premium and the corona nuisance premium:

 

  • For companies that have not been confronted with a compulsory closure (scope corona compensation premium), the resumption period is from 1 May to 31 May 2020.
  • For companies that were confronted with a compulsory closure (scope corona nuisance premium), the resumption period is the first month following the lifting of this mandatory closure.
  • For companies that remained closed voluntarily after this compulsory closure was lifted, but reopened, the resumption period is the month following the reopening and at the latest the month following the publication of this decree in the Belgian Official Gazette (22/06/2020).

 

Companies falling within the scope of the corona nuisance premium must have reopened their business within the period of one week following the lifting of this compulsory closure or at the latest one week following the publication of this decree (22/06/2020).

How much?

The flat-rate premium amounts to 2,000 EUR. For self-employed persons in secondary occupation the premium amounts to 1,000 EUR.

The flat-rate premium is increased if the company has one or more additional places of business with at least one full-time equivalent employee registered with the NSSO, and this is limited to a maximum of four additional places of business in the Flemish Region.

How to apply?

Applications for the corona support premium are submitted to the Agency for Innovation and Entrepreneurship.

Important note!

The provisions as described in this Infoflash have been published in the Belgian Official Gazette of 22 June 2020.

 

Source:

  •  Decrees of the Flemish Government of 12 June 2020 to grant aid to companies which have a drop in turnover despite the relaxed coronavirus measures, amending Articles 1, 9 and 11 of the Decree of the Flemish Government of 10 April 2020 to grant aid to companies which have a drop in turnover as a result of the operating restrictions imposed by the measures taken by the National Security Council as from 12 March 2020 relating to the coronavirus, and amending Articles 1, 6, 9 and 12 of the Decree of the Flemish Government of 20 March 2020 to grant aid to companies that are obliged to close as a result of the measures taken by the National Security Council as of 12 March 2020 relating to the coronavirus;

 

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