COVID-19: Neuchâtel's budget for hardship cases increased to 55 million francs
In order to mitigate the economic and social consequences of the health crisis, the Confederation has given the cantons the option to implement extraordinary support for cases of hardship. Recent changes to the federal framework now allow the State Council to adjust Neuchâtel’s program by increasing the commitment appropriation for cases of hardship from 22.2 to 55.5 million francs. The scope of eligible recipients has been expanded, and the application process has been simplified. Applications will be accepted starting Friday, January 22, 2021, via the website www.neuchateleconomie.ch, under the “hardship cases” section.
For the record, the “hardship” program is intended to supplement the economic support measures implemented by the Confederation and the canton over the past year. In the Canton of Neuchâtel, this tool takes the form exclusively of non-repayable financial aid for businesses that have been severely impacted by the consequences of the current crisis. The goal, in collaboration with economic associations and social partners, is to enable recipient businesses to ensure their long-term viability and to preserve, as much as possible, the jobs they provide in our canton, as well as the canton’s attractiveness.
The “hardship” assistance is intended, on the one hand, for businesses that have been subject to closures mandated by the authorities for more than 40 days since November 1, 2020, and, on the other hand, for those that have experienced a revenue loss of more than 40% over the past year.
Businesses eligible for assistance due to closures ordered by the authorities receive support equal to 24% of their average monthly revenue for each month of closure, up to a maximum of 40,000 francs per month. This support is in addition to any other assistance for which the business may be eligible. The assistance is retroactive to November 1, 2020. It is recommended that applications be submitted through a trust company, though the business may also submit them on its own.
Businesses not required to close are eligible for assistance if they experienced a decline of more than 40% in their revenue in 2020, or during the period from April 1, 2020, to March 31, 2021. The aid will be adjusted based on the loss incurred and will range from 4% to 10% of the eligible annual revenue, up to a maximum of 500,000 francs per business. Certain eligibility requirements have been relaxed, but it is still necessary to use a fiduciary firm to submit the application.
Businesses that meet the criteria—whether due to a closure or a decline in revenue—are eligible for the most favorable program. The deadline for submitting applications has been extended to June 30, 2021.
As things stand, in accordance with the COVID Act, the 55.5 million francs earmarked for hardship cases in Neuchâtel should be allocated as follows: 42.9 million francs from the federal government and 12.6 million francs from the canton.
Given the entry into force of the new provisions regarding hardship cases, the support that took the form of a 25% cantonal supplement to the RHT for businesses closed by official order (the “RHT+” program) will not be continued in 2021. The overall support program available to companies in Neuchâtel has therefore been simplified and now consists of three tools:
- RHT:
The Employment Service handles advance notice requests and renewals; the Unemployment Insurance Fund handles monthly statements.
Changes have been announced at the federal level to provide better coverage for low-wage workers and apprentices, as well as to eliminate waiting periods. Please note: It is still necessary to submit a notice of layoff request without delay, even for businesses facing closures. Furthermore, it is essential to renew authorizations that are about to expire. Retroactive coverage is not provided for under federal law. If a request is submitted late, businesses will lose days of benefits! - APG:
Compensation fund to which you are affiliated
It is important for self-employed individuals and salaried executives to explore their eligibility for APG benefits. The eligibility requirements were relaxed at the end of last year. Retroactive coverage is limited in duration. - Neuchâtel Hardship Assistance:
Cantonal Department of Economic Affairs
The entry point for all applications is the www.neuchateleconomie.ch platform via the “hardship cases ” tool, which will be available starting Friday, January 22.
In addition to these business support tools, the special employment support measures in effect through the end of January (support for professional internships, the hiring of young people and older workers, and immediate reemployment in the event of mass layoffs) will be extended. The Council of State will soon adopt a decree to this effect .
To date, federal and cantonal aid allocated to the Canton of Neuchâtel totals approximately 730 million francs: 420 million francs in non-repayable aid (RHT, APG, and others) and 310 million francs in loans or guarantees. Thanks to the effective deployment of these substantial resources, economic and social damage has been greatly limited, and our community’s resilience has been preserved.