Due to the current order of the Federal Council to contain the Corona virus, all hairdressing and cosmetics salons, shops, restaurants, as well as entertainment and leisure businesses had to close. However, Switzerland 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
With the bridging loan, affected companies are quickly supported: Between application and disbursement of the loan, according to Federal Councillor Maurer's wishes, no more than 30 minutes should pass. Up to 10% of sales or a maximum of CHF 500,000 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 necessary, without having to pay late fees. Important: however, applications must be submitted to the cantonal compensation offices. You can find a list of contact details for your compensation office here.
Short-time Work
Short-time work compensation can be paid for employees and also 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 persons in temporary work
– Applications and payments for short-time work are simplified
Anyone who wishes to apply for short-time work for their employees or is a contributing shareholder and wishes to submit such an application for themselves can contact the unemployment insurance authorities. You can find information on 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 on this can be found in the information sheet on contribution obligations for short-time work and bad weather compensation. Further information for employers and the self-employed in connection with the coronavirus can also be found here.
Corona Loss of Income Compensation
Self-employed persons and freelance artists are entitled to compensation
for loss of income
These are limited to six months, are paid monthly retroactively and are provided by 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 loss of income compensation states: "The compensation is 80 percent of the average gross income earned before the entitlement to compensation began, but a maximum of 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 where you pay social insurance contributions is responsible for the compensation. You can find the addresses here. The form for registration for Corona loss of income compensation must be sent to this office together with the attachments.
Legal Standstill
From March 19 to April 4, 2020, debtors throughout Switzerland may not be pursued. The Federal Council ordered the corresponding so-called legal standstill in debt collection proceedings at its meeting on March 18, 2020. However, keep in mind that a negative spiral is to be prevented. If you do not pay your supplier invoices, depending on the size of your business, your partner may also face financial difficulties, which would then harm the entire industry.
Rent Relief
Lease agreements generally contain a provision stating that a rental property is made available for a
specific purpose, for example "for the operation of a
hairdressing salon". With the authority-ordered closure of March 17, 2020, it is no longer possible for the landlord to fulfill this contractual assurance. CoiffureSuisse therefore recommends contacting the landlord and submitting a request for rent reduction. CoiffureSuisse has provided a template for the rent reduction request on their website. The Tenants Association has also published a case study and tips on their website.