Pending federal decisions and to provide emergency support to the self-employed and small businesses with fewer than 5 employees, the Council of State decided today to implement a measure—in addition to existing instruments—starting next week in the form of interest-free loans totaling 30 million francs. In addition, a hotline specifically dedicated to businesses—to guide them in processing their numerous requests—will go live tomorrow.

The COVID-19 situation and the necessary public health measures implemented by the authorities over the past week are having a severe impact on the economy and employment. The State Council continues to engage in intensive discussions with the social partners, relevant stakeholders, other cantons, and federal authorities to identify the most urgent areas requiring action in order to safeguard businesses, jobs, and the competitiveness of the economy as much as possible.

Strengthening Support Tools

Significant support measures are already available and in high demand, particularly the temporary layoff scheme (RHT) and loan guarantees. The Council of State wishes to commend the Federal Council for having already expanded the eligibility criteria for the RHT, while noting the importance of continuing this expansion.
As things stand, however, these instruments remain inadequate for the needs of the self-employed and small businesses whose operations have been halted by official decisions, for example in the non-food retail, restaurant, leisure, and personal services sectors. The State Council fears that a very large number of businesses will go bankrupt, and that many self-employed individuals will find themselves in a situation of financial precariousness in the very near future.
For this reason, the State Council appeals to the solidarity, ethics, and common sense of these companies’ creditors, who must show flexibility to help their clients weather this crisis. At the same time, the State Council calls on the Confederation to implement support measures as quickly as possible to help these companies whose survival is at risk.
For its part, in order to provide a rapid initial response to the urgency of the situation, the State Council has decided to implement a system of interest-free loans for these businesses. The Department of Economy and Social Action has been tasked with preparing the rollout of this program starting next week, within a total budget of 30 million francs. This will apply to self-employed individuals and small businesses with fewer than five employees whose operations have been suspended by order of the authorities. The exact criteria will be approved by the State Council next Monday.
At the same time, additional resources will be allocated as part of the economic development support policy for SMEs in the industrial sector that are continuing their strategic initiatives aimed at strengthening their competitiveness and their ability to bounce back once the crisis is over.

Launch of a dedicated hotline for businesses

In order to provide initial answers and properly address the many questions businesses have regarding the current situation, a dedicated business hotline will go live tomorrow through the cantonal Department of Economic Affairs. It will help direct businesses to the partners and services best suited to meet their needs. The hotline (032 889 68 60 / CoronavirusEntreprises@ne.ch) will be active starting tomorrow, Monday through Friday from 7:30 a.m. to 7:30 p.m., until further notice.

Constant attention

With this package of measures, which complements the announcements made on March 12, the State Council aims to provide the best possible support for the canton’s economy and jobs, within the limits of the canton’s available financial and human resources.
In addition, active and ongoing monitoring of how the situation evolves continues, particularly through the “COVID-19 Economy and Employment” platform. It is likely that the State Council will need to further adjust the cantonal support measures in the coming weeks, taking into account the decisions expected at the federal level.

Contact:
Jean-Nathanaël Karakash, State Councilor, Head of the Department of Economy and Social Action (DEAS), tel. 032 889 68 00

Neuchâtel, March 18, 2020