The Canton of Neuchâtel is expanding its hardship assistance program to include businesses that have been ordered to close by the authorities or that have experienced a decline in revenue of more than 40% due to the health crisis. This follows recent announcements by the Federal Council regarding businesses with revenue exceeding 5 million francs, for which the federal government is covering the full cost of the aid. This has freed up cantonal funds and made it possible to increase the level of support available to many businesses. The budget allocation for hardship cases in Neuchâtel is now 159 million francs, of which 24 million comes from the canton.
The extension of public health measures that may directly or indirectly hinder the operations of our businesses, as well as the entry into force of the new version of the Federal Ordinance on the Application of the COVID-19 Hardship Provision, have led to adjustments to the measures announced on January 18. Federal law now specifies the specific terms and conditions applicable to businesses with annual revenue exceeding 5 million francs. In such cases, the assistance is fully funded by the Confederation. The cantonal funds thus freed up, combined with the desire to ensure treatment that is as consistent and equitable as possible for businesses in Neuchâtel, have led to a revision of the Neuchâtel program to benefit small and medium-sized enterprises. The goal is to minimize threshold effects and discrepancies between federal and cantonal mechanisms. This will be implemented retroactively and in accordance with the current budgetary framework.
The canton of Neuchâtel continues to prioritize grants over loans and other forms of financial guarantees. For so-called “classic” hardship cases—based on a loss of revenue—the minimum percentage covered by the aid in the event of a 40% decline in revenue has increased from 4% to 6%. The maximum support rate is 20% (previously 10%) for a revenue loss of 70% (previously 60%), which corresponds to the maximum allowed by the federal government. The cap of 500,000 francs per application has been raised to 1 million francs. For businesses ordered to close by authorities, the maximum aid increases from 40,000 francs to 50,000 francs per month of closure.
Jean-Nathanaël Karakash, head of the Department of Economic Affairs and Social Action, commented on this series of decisions: “We are seeing a clear and encouraging recovery in certain businesses, particularly in the industrial sector and, more specifically, in the watchmaking industry. However, some businesses remain closed by order of the authorities, and others continue to be indirectly and severely affected by the health crisis. The goal of strengthening this support is to help them get through this difficult and protracted period. Neuchâtel’s economy must be ready to resume operations as soon as health conditions allow.”
As of April 27, hardship assistance in the canton of Neuchâtel has been provided to 707 businesses for a total of 53.7 million francs, of which 35 million have been paid out and 18.7 million are currently being disbursed. The aid primarily benefits the restaurant sector (65%), the hotel and lodging sector (10%), sports and recreation centers (3%), and the watchmaking industry (2%). The deadline for submitting applications has been extended to September 30, 2021, via the website www.neuchateleconomie.ch, under the “hardship cases” section.
Contact:
Jean-Nathanaël Karakash, State Councilor, Head of the Department of Economy and Social Action (DEAS), tel. 079 670 58 61.
Jean-Kley Tullii, Head of the Economy Division, tel. 032 889 48 15