1 The Confederation may at the request of one or more cantons support hardship assistance provided by these cantons to assist sole proprietorships, partnerships or legal entities registered in Switzerland (companies) that were established or began their business operations before 1 October 2020, which were registered in the canton concerned on 1 October 2020 and which suffer particular hardship as a consequence of COVID-19 owing to the nature of their economic activity, in particular businesses connected with the event industry, travelling fairs, service providers in the travel industry, restaurants and hotels, and tourism businesses.59
1bis A case of hardship under paragraph 1 arises where a business's annual turnover is less than 60 per cent of its multi-annual average. The entire asset and capital situation must be considered, together with the share of fixed costs that is not covered.60
1ter Granting hardship assistance is conditional on the business that receives support in the financial year in which the hardship assistance is granted and for the three subsequent years:
- a.
- not distributing or deciding to distribute dividends and shares of profits; and
- b.
- not repaying or deciding to repay capital contributions.61
1quater The Confederation shall pay the cantons a financial contribution of:
- a.
- 70 per cent of the hardship assistance granted under paragraph 1 to companies with an annual turnover of up to 5 million francs;
- b.
- 100 per cent of the hardship assistance granted under paragraph 1 to companies with an annual turnover of over 5 million francs.62
1quinquies In the case of hardship assistance granted to companies with an annual turnover of over 5 million francs, the Federal Council shall issue special regulations on:
- a.
- the supporting documents to be submitted;
- b.
- calculating the contribution; the contribution must be based on the costs that are uncovered as a result of the fall in turnover;
- c.
- the maximum levels for contributions; the Federal Council shall provide for higher maximum contributions to be made to companies that experience a fall in turnover of more than 70 per cent;
- d.
- the personal contribution to be made by the owners of the company if the amount exceeds 5 million francs; in calculating personal contributions, personal contributions that have been made since 1 March 2020 and paragraph 1bis shall be taken into account;
- e.
- the procedures for loans, loan guarantees and other guarantees.63
1sexies The provision of support for cantonal measures for companies with an annual turnover of up to 5 million francs is conditional on compliance with the minimum federal requirements. For companies with an annual turnover of over 5 million francs, full compliance with the eligibility requirements of federal law is required in all cantons; the foregoing does not apply to hardship measures taken by canton that go further, provided the canton finances these measures itself in full.64
1septies Companies with an annual turnover of over 5 million francs that make a taxable annual profit in accordance with Articles 58-67 of the Federal Act of 14 December 199065 on Direct Federal Taxation in the year in which they are paid a non-repayable contribution shall pay the profit to the canton concerned; however, this payment shall not exceed the contribution received. The canton shall pay 95 per cent of the monies received to the Confederation. The Federal Council shall regulate the details, in particular the consideration given to losses made in previous years and their treatment in the accounts.66
2 In addition to the financial assistance under paragraph 1quater letter a, the Confederation may make additional contributions towards cantonal hardship measures in cantons that are particularly affected without the cantons paying part of these additional contributions. The Federal Council shall regulate the details.67
2bis The provision of federal support is conditional on a business having been profitable or viable before the COVID-19 outbreak and not being entitled to other COVID-19 financial assistance from the Confederation. This financial assistance does not include short-time work compensation, compensation for loss of earnings or loans granted under the COVID-19 Financial Guarantees Ordinance of 25 March 202068 and the COVID-19 Financial Guarantees Act of 18 December 202069.70
2ter If the activities of a business are clearly defined, it must be possible to grant different types of assistance, provided there is no overlap.71
2quater In order to expedite the processing of claims, advance payments not exceeding the probable claims are permitted provided due diligence is exercised.72
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4 The Federal Council shall regulate the details in an ordinance; it shall consider businesses that achieved an average turnover in 2018 and 2019 of at least 50 000 francs.74
5 For businesses that are required to cease operating from 1 November 2020 for several weeks as a result of measures taken by the Confederation or the cantons to control the COVID-19 epidemic or whose operations are considerably restricted during this period, the Federal Council may relax the requirements that businesses must meet in order to file a claim under this Article.75
6 If a canton claims federal funding for its hardship measures, all companies registered in the canton must be treated equally, irrespective of whether they conduct their business operations in that canton.76
7 In order to fulfil their tasks, the cantons may on their own initiative instigate and conduct civil and criminal proceedings in the competent courts and through the competent prosecution authorities and act as a private claimant in criminal proceedings; they shall have all the associated rights and obligations.77