Non-repayable grants paid in mid-November: here is the new aid for businesses

The Council of Ministers is scheduled to meet today at Palazzo Chigi to approve the relief decree, which should contain the resources to be allocated to businesses affected by the latest Prime Ministerial Decree.

The goal is to pass the measure and submit it to the Official Journal by the end of the day, as announced by Prime Minister Giuseppe Conte live on television on Sunday. It's a race against time to ensure immediate relief with the available resources, approximately €5-6 billion, without resorting to a new budget adjustment. The mechanism for ensuring compensation will be the same as that already used for the Relaunch Decree: non-repayable grants disbursed by the Revenue Agency via automatic bank transfer to current accounts by mid-November. According to an initial estimate, over 325 businesses with a turnover of up to €5 million and an ATECO code that falls within the categories suspended by the Prime Ministerial Decree (i.e., restaurants, ice cream parlors, bars, pastry shops, catering, spas, businesses related to parties and ceremonies, sports activities, and spas) will receive the new non-repayable grant.

Of these, 91.625 are new beneficiaries, joining the 234.065 businesses in the same categories that have already received the relief provided by the Relaunch Decree. However, the government is still evaluating whether to extend the aid to businesses with a turnover exceeding €5 million. The aim is also to increase the amount of reimbursements compared to those previously paid (based on the decline in turnover in April 2020 compared to the same month of the previous year): they will range "from 100% to 200% of what, based on the decline in turnover in April 2020, companies received with the non-repayable fund under the Relaunch Decree. In some cases, perhaps even more," assured Deputy Minister of Economy Laura Castelli, explaining that they could therefore reach double the amount received.
Ristoro Decree: new aid, for which categories?
The new provisions announced by the Prime Minister have hit some sectors of the country like a brick.

Palazzo Chigi is aware of this and the Government has not hesitated to announce financial aid for entrepreneurs involved in the crackdown.

The recipients of the next economic support measures, therefore, should be all companies, VAT numbers and public establishments subject to the restrictions contained in the new DPCM, for a total number of at least 350.000 entities, as announced by Gualtieri himself.

Specifically, the Ristoro decree will most likely be aimed at businesses forced to close or limit their business hours. Therefore, those vying for aid include restaurants, ice cream parlors, pubs, bars, pastry shops, theaters, cinemas, discos, arcades, swimming pools, gyms, and ski resorts.
The list of beneficiaries, however, is being defined. Below are the main measures being studied by the Government.

Non-repayable contributions
The Ristoro decree provides for new non-repayable contributions, for a total of 1,2 billion euros in aid.

The Mise and the Mef are working to define the structure and mechanisms for the provision of such compensation. From Gualtieri's statements, however, some characteristics of these specific supports for businesses have already emerged.

The Revenue Agency will take care of the direct payment to the beneficiaries' account, as already happened with what was established in the Relaunch decree. The economic entities involved in the previous disbursement will be able to receive the non-repayable amount on their current account by mid-November (November 11th Gualtieri anticipated).

For those excluded from the measure of the Relaunch decree, that is, economic entities with a turnover of more than 5 million euros, the times will be longer. These companies, in fact, will be involved in the non-repayable support of the Restoration decree, but will have to submit an application.

As for the amounts of compensation, there are no specific details. Minister Gualtieri went out on a limb, stating that: “this time we will give a higher compensation than the one received last time”.

In the Relaunch Decree, 10,15, 20 and 2019 percent were offered based on revenues or compensation included in a decrease compared to XNUMX and included in three bands.

For individuals, a minimum of 1.000 euros was foreseen, increased to 2.000 for legal entities. At the moment, for the Ristoro decree, it is not clear whether the criteria for disbursing the non-repayable fund will be the same. According to government sources, amounts at least one and a half times higher are being studied.

Deputy Minister of Economy Misiani stressed the need to distinguish between companies that will close at 18.00:XNUMX p.m. and those forced to completely block their activities, with greater support for the latter.
Elimination of IMU installment
The cancellation of the IMU instalment is also very likely coming. The tax, due on 16 December, should be eliminated for businesses and economic entities affected by the DPCM, as announced by Gualtieri himself.

Rent Tax Credit
The Ristoro decree should also extend the tax credit on rents. Minister Gualtieri spoke of three more months of support for businesses and traders who have to pay the monthly rent installment.

Specifically, you will have the option to discount the credit from the rent or transfer it to the owner.

Integration fund
The measure should also contain the extension of the CIG, specifically for companies that have used it continuously and for which the deadline is mid-November.

A postponement of the Cassa Integrazione by 6 or 10 weeks is hypothesized, for a value of 1,6 billion euros.

1.000 Euro bonus
Gualtieri, in presenting the guidelines of the Ristoro decree, also spoke of an allowance of 1.000 euros to be paid to the most disadvantaged categories, which could include:

seasonal tourism;
seasonal entertainment;
sports centre operators;
for casual and intermittent workers
home sellers
The bonus would fill the loss of earnings of categories included in the closures and limitations of the new DPCM. However, the characteristics and amount of such one-off support remain to be defined.

In a recently released statement, Sports Minister Spadafora announced that for the month of November, seasonal workers in tourism, entertainment, and intermittent sports workers who are not included in the redundancy fund could receive 800 euros.

Specifically, the Minister of Economy, Roberto Gualtieri, and the Minister of Economic Development, Stefano Patuanelli, have already begun working on a series of compensation measures for those affected by the new regulations. A Restoration Decree could allocate €5 billion. Giuseppe Conte "doesn't want to make promises" regarding this matter, as he "prefers to make a commitment." Some of the potential benefits were already outlined at a press conference: for example, another month's Emergency Income will be awarded, while a new one-time bonus is on the way for seasonal workers in tourism, entertainment workers, and intermittent sports workers.

Non-repayable grant for businesses paying the consequences of the health crisis
One of the first aids announced by Giuseppe Conte that should see the light with an ad hoc provision that will be approved in the next few hours is that of a non-repayable contribution that will be aimed at companies penalized by the provisions of the new DPCM.

The Prime Minister mentioned restaurateurs, owners and managers of gyms and swimming pools, as well as retailers and artisans who are suffering from the decline in sales. For these businesses, there should be a new disbursement of non-repayable grants: this aid, as Giuseppe Conte explained at the press conference, will be credited directly to the interested party's bank account by the Revenue Agency.

It will be necessary to define the amounts and requirements for recognition, but it is not excluded that what was already decided with the first disbursement of this type of contribution could be partially confirmed.

We recall that the Relaunch Decree has recognized this aid to companies with revenues and compensation not exceeding 5 million euros, with turnover in April 2019 (now we will see which month will be chosen as a reference) which has undergone a reduction of 33% compared to the same month this year.

To calculate the non-repayable contribution, however, it was necessary to take this difference in amount as a reference and take a variable percentage share depending on the turnover. That is:

20% for subjects with revenues or compensation not exceeding €100.000;
15% for individuals with revenues or fees between €100.000 and €400.000;
10% for individuals with revenues or fees between €400.000 and €5.000.000.
The minimum amount of the non-repayable contribution is 1.000 euros for individuals, 2.000 euros for other subjects.

We will see if these criteria will be confirmed for this new tranche of payments of non-repayable contributions, for which we will have to wait for the specific provision with which the necessary resources will be allocated.

The Minister of Economy explains how the non-repayable contribution will be paid
On the evening of Sunday, October 25, the Minister of Economy, Roberto Gualtieri, also intervened, providing further information on the non-repayable contributions. In detail, he explained that the entities affected by the compensations are many, "perhaps 350 thousand". These are all the companies and public establishments that are subject to the restrictions introduced by the DPCM.

Regarding the timing of the disbursement, the Minister of Economy declared:

We think that the Revenue Agency can provide these contributions by mid-November, maybe even by November 11, because there will be the same mechanism already authorized for the old non-repayable fund. So everyone who has already applied for these contributions will receive them automatically.

The non-repayable grant will therefore be automatically awarded to those who have already received it in recent months. This time, it will be slightly higher than last time, because—as Gualtieri explained—"we know that recent months have also been difficult, and therefore it will be a slightly higher amount."
But be careful: even those who have not applied because they have a turnover of more than 5 million euros will be able to apply for non-repayable contributions this time. However, since there will be an application to submit, it will take a few more weeks to receive the disbursement, which in any case "will be within the year".

Other economic aid for businesses penalized by COVID-19
At the press conference, the Prime Minister announced other aid. For example, the provision of a new tax credit for rents of those businesses penalized by the economic crisis from COVID-19.

And again: the second IMU instalment, due on December 16, 2020, will be suspended—and will be completely eliminated.

Bonus 1.000 euros August decree: it becomes a one-off. Here's who it's for

The 1.000 euro bonus is provided for by the August decree n.104/2020 converted into law n.126 of 13 October.

If in one of the latest drafts of the August decree the 1.000 euro bonus had disappeared to make room for two monthly payments (June and July) of 600 euros, in the end it is reduced. Therefore the 1.000 euro bonus reappears in the final text of the decree, but one-off.

The 1.000 euro bonus of the August decree that we are discussing concerns some specific categories of workers that we also found in the Relaunch decree and in the Cura Italia even before.

Mainly, the beneficiaries of the 1.000 euro bonus are seasonal workers as well as entertainment workers, in addition to other categories of self-employed or employees who will still obtain the one-off benefit in compliance with certain requirements. Seasonal workers with fixed-term contracts are finally included in the measure.

The August decree also defines the criteria for the 1.000 euro bonus for professionals registered with the funds for the third month of May of the Relaunch decree.

Let's see in detail what the August decree provides on the new 1.000 euro bonus and who it is for.

One-off 1.000 euro bonus from the August decree: here's who it's for
The 1.000 euro bonus of the August decree is due to various categories of workers, primarily seasonal workers in the tourism and spa sectors.

In fact, Article 9 of the bill is dedicated specifically to the new allowance for seasonal workers in tourism, spas, and entertainment. It had been labeled a "political issue" in one of the latest drafts, and in effect, the two monthly payments of €600 have been reduced to an all-inclusive bonus, as defined in the bill, of €1.000.
If we look at the text of Article 9, it establishes that the 1.000 euro bonus is granted as a one-off payment to:

seasonal employees in the tourism sector and in spas who involuntarily terminated their employment relationship in the period between 1 January 2019 and 17 March 2020, provided they are not entitled to a pension, employment or NASPI;
to temporary workers employed by user companies operating in the tourism and spa sector who involuntarily terminated their employment relationship in the period between 1 January 2019 and 17 March 2020, who were not entitled to a pension, nor to an employment relationship, nor to NASPI, on the date of entry into force of this provision.
The one-time €1.000 bonus is also granted to employed and self-employed workers who, as a result of the COVID-19 health emergency, have ceased, reduced, or suspended their activity or employment relationship and who are:

seasonal employees belonging to sectors other than tourism and spas who involuntarily terminated their employment relationship in the period between 1 January 2019 and 17 March 2020 and who carried out the work for at least thirty days in the same period;
intermittent workers who have carried out the work for at least thirty days in the period between 1 January 2019 and 17 March 2020;
Self-employed workers without a VAT number and not registered with other mandatory social security schemes who, between January 1, 2019, and February 29, 2020, held occasional self-employed contracts falling under the provisions of Article 2222 of the Civil Code and who do not have an existing contract as of the effective date of this decree. For such contracts, they must already have been registered with the Separate Management System as of March 17-February 2020;
door-to-door sales representatives referred to in Article 19 of Legislative Decree No. 114 of March 31, 1998, with annual income from the same activities exceeding €5.000 in 2019 and holders of an active VAT number and registered with the Separate Management referred to in Article 2, paragraph 26, of Law No. 335 of August 8, 1995, as of March 17, 2020, and not registered with other mandatory social security schemes.
These are the subjects who should receive the new benefits and who at the date of submission of the application must not be in any of the following conditions:

holders of another permanent employment contract;
pension holders.
These are the same categories of workers identified in Article 84 of the Relaunch Decree.

1.000 Euro Bonus: Other Beneficiaries in the August Decree
Other beneficiaries of the 1.000 euro bonus of the August decree are also the members of the Entertainment Workers Pension Fund who have already benefited from the allowances financed by the Cura Italia decree and then by the Relaunch decree.
A one-time allowance of €1.000 is always provided for these workers. This allowance is also available to workers enrolled in the Entertainment Workers' Pension Fund with at least seven daily contributions paid in 2019, resulting in an income not exceeding €35.000 (paragraph 4).

The 1.000 euro bonus would also be due to temporary employees in the tourism sector and spas, that is, seasonal workers without a seasonal contract. To obtain the 1.000 euro bonus, they must have the following requirements:

ownership, in the period between 1 January 2019 and 17 March 2020, of one or more fixed-term employment contracts in the tourism and spa sector, with a total duration of at least thirty days;
holding one or more fixed-term or seasonal employment contracts in the same sector in 2018 with a total duration of at least thirty days;
absence of entitlement, at the time of entry into force of this decree, of a pension and of an employment relationship.

Bonus 1.000 euros: cumulation between allowances
Article 9 of the August decree on the €1.000 bonus defines the cases of cumulation and non-cumulative benefits. The €1.000 bonuses referred to in paragraphs 1, 2, 4, and 5 are not cumulative, nor are they, according to paragraph 6, cumulative with:
the allowance referred to in Article 44 of Legislative Decree No. 18 of March 17, 2020, converted with amendments by Law No. 27 of April 24, 2020, and subsequent amendments and additions.
This applies to the bonus for registered professionals issued by the income of last resort, as well as the bonus for domestic workers and carers, which in the Cura Italia decree was regulated by Article 44, only to then have its own Article 85 in the Relaunch decree.

The €1.000 bonus provided by the August Decree can be combined with the ordinary disability benefit provided for by Law No. 222 of June 12, 1984.

New Skills Fund: News for Workers in the August Decree

The New Skills Fund returns with the August decree with new features for workers in the final text in force from August 15. Decree no. 104/2020 has been converted into law no. 126/2020.

The fund is aimed, at equal wages, at training workers: a part of the working hours will in fact be dedicated to this without resulting in a decrease in wages, but to help relaunch businesses.

And the Relaunch decree introduced the fund replenished with the new August decree.

Let's see what's new for workers with the New Skills Fund renewed with the August decree.

New Skills Fund: New Features in the August Decree
There is not much news for workers regarding the New Skills Fund in the August decree except that it is enriched and refinanced after what is foreseen in the Relaunch decree.

The text of the August decree dedicates Article 4 - Provisions regarding the New Skills Fund - to the fund, which states:

“1. The following amendments are made to Article 88, paragraph 1, of Legislative Decree No. 34 of 19 May 2020, converted with amendments by Law No. 77 of 17 July 2020:
a) the words "for the year 2020" are replaced by the following: "for the years 2020 and 2021" b) after the word: "company" the following is added: "or to facilitate worker relocation processes" c) the following words are added at the end: "The aforementioned fund is increased by an additional 200 million euros for the year 2020 and by an additional 300 million euros for the year 2021."

Let's see what Article 88 of the Relaunch Decree, which the August decree amends, provides; paragraph 1 states:

1. In order to allow for the gradual resumption of activity after the health emergency, for the year 2020, collective bargaining agreements signed at the company or local level by the most representative employers' and workers' associations at the national level, or by their trade union representatives operating within the company pursuant to applicable legislation and inter-confederal agreements, may establish specific agreements to reschedule working hours to reflect the company's changing organizational and production needs, whereby part of the working hours are used for training. The costs related to training hours, including the related social security and welfare contributions, will be covered by a special fund called the "New Skills Fund," established at the National Agency for Active Labor Policies (ANPAL), up to a limit of €230 million from the National Operational Program SPAO.

Not only does the August decree increase the resources of the New Skills Fund, but it also specifies that the rescheduling of working hours, while maintaining the same salary, with part of it earmarked for training, will be aimed at facilitating workers' relocation.

New Skills Fund for the Future of Workers
The one who wanted the New Skills Fund was the Minister of Labor Nunzia Catalfo, who has always spoken about it with great enthusiasm.

We need impactful tools that impact not only the present but also, and above all, the future. Among these, the National Plan for New Skills, which I'm working on, will play a central role. The American economist Lester Thurow, who passed away in 2016, said that 'the competitive weapon of the twenty-first century will be training combined with the skills of our workforce.' And it is precisely in this direction that we must move forward.

And in the same message launching the August decree measure, the minister declared:

A journey that has already begun with the "New Skills Fund" introduced in the Relaunch Decree, which will be strengthened with the new measure we will pass next week, and which will continue with the reform of social safety nets and the relaunch of active labor market policies. This will be accompanied by recovery plans for all strategic sectors of our productive system, investing in digital, the green economy, and major infrastructure. Let's turn the crisis into opportunity by designing, together, the future of the labor market.

According to the minister, the New Skills Fund with the incentives of the August decree is just a small piece of an even larger project for the relaunch of the labor market. The implementing decree for the New Skills Fund is already available.