Hardship payments
In the 2021 winter session, the Federal Parliament decided to extend financial support for companies in the form of hardship payments until June 2022 at the latest.
Hardship payments December 2021
Subsequently, the Grand Council of the Canton of Fribourg decided in March 2022 to grant additional hardship contributions for December 2021.
However, the group of possible claimants has been severely restricted and is no longer open to all industries.
Only the following industries can make a possible claim:
Cat 1: bars and discotheques with patent D, sports and leisure businesses
Cat 2: Lodging establishments with patent A
Cat 3: Parahotellerie enterprises with patent I, catering trade, passenger transportation without transfer of public tasks (bus tour operator, cab), service providers in the event sector, traiteurs
Cat 4: Travel agencies, tour operators
For this application, in addition to many other conditions and requirements, it was generally necessary to be able to prove a decrease in sales of at least 30% (compared to December 2019).
The financial support consists of an additional contribution corresponding to a percentage (25% or 10% depending on the category) of the decrease in sales in December 2021 compared to December 2019. An application in this regard could be submitted until May 31, 2022. The processing of these applications by the Canton is ongoing.
Hardship payments January - March 2022
On May 16, 2022, the State Council of the Canton of Fribourg also approved the ordinance for hardship payments in 2022 (WMHV-COVID-19 22). The contribution period runs from January 1 to March 31, 2022; the State Council could extend this period to a maximum of the end of June 2022 if necessary.
The group of possible claimants corresponds to the same categories (see above) as for December 2021.
For the first quarter of 2022, in addition to many other conditions and requirements, it must generally be possible to prove a decline in sales of at least 40% (compared to Q1 2019). Exceptions exist for category 1 and 4.
The financial aid will not be based on a multiplier to the loss of revenue as in December 2021, but will be a percentage of the difference between the revenue and the costs for the first quarter of 2022. The amount of the percentage depends on the category of the company and is 60% or 80% of this calculated difference. Only cash expenses (no depreciation) are taken into account when determining costs.
Applications can be submitted from June 15 to July 31, 2022 via the electronic portal of the Economic Development Agency www.promfr.ch/covid-19/. Documents such as a guide, calculation tables or the regulations are also available on this link.
Please do not hesitate to contact us if you have any questions or would like advice.
Markus Jungo
Partner, Site Manager
Master of Science in Business Administration
Swiss Certified Accountant
T +41 26 347 28 88
mju@core-partner.ch