Following the presentation on January 18, 2021, of aid measures for businesses in Neuchâtel and the State Council’s decisions on February 22 of this year to increase the dedicated funding pool to 80 million francs, adjustments to the cantonal program were necessary. One of the key changes worth noting is the extension of the application deadline for public institutions to June 30, 2021.
In addition, the processing of applications submitted by companies with revenue exceeding 5 million francs and by those organized on an intercantonal basis has been suspended until the federal framework is clarified.
As a reminder, the Neuchâtel hardship support program provides non-repayable grants to businesses that have lost more than 40% of their annual revenue, as well as to businesses that have been subject to a government-mandated closure for more than 40 days since November 1, 2020. This is one of the three pillars of the strategy to support the economy during this crisis, alongside short-time work (RHT) benefits and APG benefits.
The guidelines for calculating the aid were presented on January 18, and on February 22, the State Council allocated the necessary funds to continue the announced support through June 30, by increasing the dedicated budget to 80 million francs.
To date, more than 1,000 applications for hardship assistance have been processed or are still being processed, for a potential total amount of approximately 40 million francs, of which 18.2 million francs have already been disbursed. Many additional applications are still expected, as the program was launched relatively recently.
Following various clarifications that have already been made regarding the applicable federal framework, a few adjustments were necessary to the implementing decree of the Cantonal Department of Economic Affairs and Social Services. This decree was adopted today and will be published later this week. Consequently, the support agreements—certain wording aspects of which needed to be clarified—have also been updated. Among the significant changes worth noting is that the deadline previously set for public institutions to submit applications has been extended to June 30, 2021.
Furthermore, several uncertainties remain regarding the applicable federal framework concerning, on the one hand, companies with annual revenue exceeding 5 million francs and, on the other hand, companies organized on an intercantonal basis. For these two specific categories of companies, the canton does not wish to disburse funds at this time, given the risk of having to request reimbursement at a later date. Consequently, the processing of applications from these two categories of businesses is temporarily suspended until federal law is clarified, likely during the first half of March. In the meantime, however, the affected businesses may continue to submit their applications to the cantonal Department of Economic Affairs.
Finally, the uncertainties caused by the adjustments to the federal and cantonal frameworks mentioned above have resulted in a delay of a few days in the processing of applications and the disbursement of aid. Operations are expected to return to normal on March 8, 2021.