COVID-19 Update: loss of earnings insurance and support to innovative start-up
New measures on loss of earnings insurance and bridge loans for start-up
While the process of easing the measures against the COVID-19 outbreak becomes clearer, the Swiss Federal Council added new measures to those already presented in our April Newsletter (Newsletter - April 2020.pdf).
Loss of earnings insurance
On April 22, 2020, the Swiss Federal Council decided to allow self-employed persons directly impacted by the measures against the COVID-19 who will reopen their businesses on April 27 or May 11 to continue to receive compensation for loss of earnings until May 16, 2020 (similarly as for the self-employed persons indirectly impacted). If they already benefit from such compensation, their right to daily allowances is extended without any additional action required. The situation remains the same for the self-employed persons who will not be allowed to reopen their business after May 16, as well as for those who are in quarantine or in case of childcare.
Bridge loans for start-up
On April 22, 2020, the Swiss Federal Council decided to implement an additional measure in favour of Swiss innovative start-ups in order to prevent insolvency due to COVID-19 outbreak. The SECO has been instructed to adapt the existing system of guarantees designed for SMEs to start-up' needs by April 30, 2020. The Swiss government as well as any voluntary canton will be able to guarantee 65% and 35% respectively of a credit solicited from any Swiss bank. The application shall be submitted to the relevant cantonal office by August 31, 2020, at the latest.
In Geneva, an additional measure to support start-up has been implemented. The canton will grant up to CHF 3 million to start-up as direct loans without interest (maximum CHF 200'000 per entity). The loan application can be submitted to the Geneva Foundation for technology innovation (FONGIT).Back