Due to the current Federal Council order to contain the coronavirus, all hairdressing and cosmetics salons, shops, restaurants, as well as entertainment and leisure facilities had to close. However, Switzerland has decided on various measures to cushion the economic losses of these businesses until they are expected to reopen on April 20, 2020.
COVID-19 Loan up to CHF 500,000
The bridge loan quickly supports affected businesses: According to Federal Councillor Maurer's wishes, no more than 30 minutes should elapse between application and disbursement of the loan. Up to 10% of turnover or a maximum of 500,000 CHF can be applied for as an interest-free (0%) loan. The loan application can be downloaded here and must be submitted directly to your house bank. The loan term is a maximum of 5 years.
Payment Deferral for Social Insurance Contributions and VAT
Invoices for social insurance (AHV/IV/EO/ALV) and VAT can be deferred if needed, without having to pay default interest. It is important to note that applications must be submitted to the cantonal compensation offices. A list of contact details for your compensation office can be found here.
Short-Time Work
Short-time work compensation can be granted for employees and also newly for company shareholders.
– Waiting period for short-time work is eliminated: Employees do not have to reduce overtime first
– Short-time work is also available for apprentices, employees in fixed-term employment relationships, and temporary workers
– Applications and payments for short-time work are simplified
Anyone who wants to apply for short-time work for their employees or is a participating shareholder and wants to submit such an application for themselves can contact the unemployment insurance authorities. You can find information about this here. You can calculate the amount of short-time work compensation using the AHV online calculator. It is also important to know that companies receiving compensation benefits for short-time work must continue to pay social insurance contributions in full. Further information is available in the information sheet on contribution obligations for short-time work and bad weather compensation. Additional information for employers and self-employed persons in connection with the coronavirus is also available here.
Corona Loss of Earnings Compensation
Self-employed persons and freelance artists are entitled to compensation
for loss of earnings
These are limited to six months, are paid monthly retroactively, and are provided through the AHV compensation offices. Self-employed persons, parents, and persons in quarantine are entitled to compensation. Regarding the amount of compensation, the information sheet on Corona earnings compensation states: "The compensation amounts to 80 percent of the average gross earnings income earned before the start of the entitlement to compensation, but not more than 196 francs per day. Employees reach the maximum daily allowance with an average monthly salary of 7,350 francs (7,350 x 0.8 / 30 days = 196 francs/day)."
The compensation office responsible is the one where you pay social insurance contributions. You can find the addresses here. The form for registration for Corona loss of earnings compensation must be sent to them together with the supporting documents.
Stay of Legal Proceedings
From March 19 to April 4, 2020, debtors throughout Switzerland may not be prosecuted. The Federal Council ordered the corresponding stay of legal proceedings in debt enforcement proceedings at its meeting on March 18, 2020. However, keep in mind that a negative spiral should be prevented. If you don't pay your supplier invoices, depending on the size of your business, your partner could also face financial difficulties, which would harm the entire industry.
Rent Relief
Lease agreements generally contain a provision whereby a rental property is made available for a
specific purpose, for example "for the operation of a
hairdressing salon". With the authority-ordered closure on March 17, 2020, it is no longer possible for the landlord to fulfill this contractual commitment. CoiffureSuisse therefore recommends contacting the landlord and submitting an application for rent reduction. CoiffureSuisse has provided a template of the application for rent reduction on their website. The tenant association has also published a case study and tips on its website.