Coronavirus: Flemish Protection Mechanism

Author: Jonas Verplanken (Legal Expert)
Date:

The tightened corona measures taken in recent weeks once again confront a number of companies with an imminent loss of turnover. These companies do not have access to any of the existing premium schemes (Nuisance premium, Support premium, etc.), as these premiums are granted as a result of the measures in force from 12 March 2020 until the beginning of June. The new corona measures obviously date from after that period.

In order to support these companies, the Flemish Government has created a new premium, called the Flemish Protection Mechanism.

For whom?

Companies that have suffered a drop in turnover as a result of the stricter corona measures taken from 29 July 2020.

Are excluded:

  • Companies in a state of dissolution, cessation of activity, bankruptcy, liquidation;
  • Holdings, management or patrimonial companies;
  • Companies whose managing director is linked as a director, partner or manager to another company that has received the subsidy and to which they provide business services;
  • Companies in arrears with VLAIO following the recovery of corona premiums;
  • Companies that had not yet started up on 1 August 2020.

Conditions

  • The company's turnover will fall by 60% or more from 1 August 2020 to 30 September 2020 (reference period) compared to the same period in 2019;
  • Only companies falling within the scope of either the corona nuisance premium or the corona compensation premium are eligible for the subsidy (whether they have applied for it or not);
  • Only companies with an active business conduct during the period from 1 August 2020 to 30 September 2020 will be eligible for the subsidy, unless the company has been compulsorily closed as a result of corona measures or normal annual period of closure. The condition for active business conduct must be fulfilled no later than 7 days after publication in the Belgian Official Gazette. If, after this date, the company is open for fewer days than the number of days during the reference period, the subsidy is halved.

How much?

The premium amounts to 7.5 % of the turnover during the reference period, limited to a maximum amount of 15,000.

As is the case for the support premium, the subsidy is halved for certain self-employed persons in a secondary occupation.

Companies operating an establishment serving meals on a regular basis or a catering establishment providing catering services on a regular basis may receive premiums of € 3,000 or more only if they have a registered cash register system.

How to apply?

Applications for the corona support premium must be submitted to the Agency for Innovation and Entrepreneurship (VLAIO). The subsidy may be applied for no earlier than 1 October 2020 and no later than 15 November 2020. Companies which have been compulsorily closed as a result of corona measures may apply for an advance payment of up to € 2,000 before 1 October 2020.

Important note!

The provisions as described in this Infoflash have been published in the Belgian Official Gazette on 17/8/2020.

 

Source:

  • Decree of the Flemish Government of 7 August 2020 concerning the Flemish Protection Mechanism for companies that have suffered a drop in turnover as a result of the stricter corona measures taken from 29 July 2020, amending Articles 10 and 21 of the Decree of the Flemish Government of 12 June 2020 concerning the corona support premium and amending Article 1 and adding an annex to the Decree of the Flemish Government of 29 May 2020 concerning the corona commercial lease loan.

 

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