Start of the fifth round of loans
The countdown has begun for the fifth phase of the popular “Deposit to Return” program – cheap government loans that thousands of businesses and independent professionals rely on to cover their foreclosure and turnover losses. Christmas business they missed.
In the next two or three days, the myBusinessSupport platform is expected to open for applications, sources claiming it will remain open until January 15.
Applicants will need to provide proof that they have experienced a reduction of at least 20% year on year in their turnover over the period September to December 2020 compared to the same period in 2019. Above all, the financing of the fifth phase will be offset by the funds possibly collected in the fourth phase concerning the turnover lost from the period from October to November. As a result, beneficiaries of the loans from the previous phase should see their income from the fifth phase reduced.
The disbursement of the fifth phase will not occur immediately after the submission of applications, as was the case for the previous one, but will follow the same process as in the first three phases, with some checks beforehand. Therefore, payments to businesses and the self-employed are not expected until mid-January.
As in the fourth phase, only 50% of the loans to be issued this month will have to be returned within five years, with a low interest rate, and the minimum amount of aid will be 1,000 euros.
Those who receive the funding this month will also pledge not to lay off any staff for five months, unlike in previous phases, where this obligation was for the following four months. In this way, the finance ministry aims for participating companies to complete the coronavirus pandemic with all their workers, with the hope that employers will be more optimistic in June and avoid making layoffs.
The budget for the fifth phase is expected to rise to 1.5 billion euros, with ministry officials also planning to offer a sixth phase.