Many companies are struggling because of the Corona crisis. Forced closures and new measures are causing a severe drop in turnover. That is why the Flemish government proposes the Flemish protection mechanism. As of today, you can appeal to this as an entrepreneur.
Companies that recorded a decrease in turnover of 60% in August and September can receive a financial support through the Flemish protection mechanism. This support is calculated on the basis of your turnover from last year during the same period. As an entrepreneur you can receive 7,5% of your normal turnover with a maximum of 15.000 EUR.
Can the Flemish protection mechanism be combined with other financial support?
The Flemish protection mechanism is in line with the nuissance premium, compensation premium and support premium. The Flemish protection mechanism cannot be combined with a subordinated loan of more than 75.000 EUR under the Corona measures.
When are you eligible for this premium?
If you are self-employed in your main occupation and your company is still open, you are eligible for this. You may therefore not have received a closing premium for the month of August or have filed for bankruptcy.
For self-employed persons in a secondary occupation, the premium is halved if they recorded a professional income between 6.996,89 EUR and 13.993,78 EUR in 2019.
Does this mean that you will be left out if you still took your annual vacation? No, the Flemish government takes that into account. But if your company had significantly more closing days betwin 1 August and 30 September 2020 than last year, you are only entitled to half of the premium. Obviously, this condition does not apply to companies that were obliged to close due to the stricter measures.
Do you offer catering services or meals?
Different rules apply to companies that, in addition to their main activity, also provide meals or caterers that offer catering services. They do receive a subsidy of 7,5%, but the premium for them is limited to 3.000 EUR. This limit to 3.000 EUR does not apply to companies that work with a white cash register.
How do you apply for this premium?
You can apply for this premium as of today. Don’t forget to send in your application before 15 November through this web form.
You can submit one application per company. You declare in good conscience that you have effectively suffered a 60% decrease in turnover and you keep the supporting documents for the next five years. After all, the Flemish government will carry out audits. As soon as the Flemish Agency for Innovation & Entrepreneurship (VLAIO) approves your application, you will receive the premium on the account number of your company.
Would you like to know more about the Flemish protective mechanism? Visit the website of VLAIO.
Did you notice a serious drop in turnover due to outstanding invoices?
Collecting your unpaid invoices does not have to be time consuming or expensive. Go Solid can collect your invoices with no charge within 30 days. This is done with respect for your customer relationship. Interested? Contact us without obligation.