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Friday, November 27, 2020
Companies affected by the pandemic can count on financial support from the state for a longer time. This should flow for another six months. In addition, more companies should have the opportunity to obtain bridging aid.
The federal government is expanding its financial assistance for businesses and the self-employed who are particularly affected by the crown crisis. At least 15,000 million euros are foreseen for December aid; The grants are mainly intended for companies in the restaurant sector, for example, which have to close until shortly before Christmas due to the extension of the partial closure. At the same time, the temporary bridge assistance until the end of the year will be extended until the end of June 2021, as announced by the ministries of economy and finance. These are grants primarily for small and medium-sized businesses that typically have a sharp drop in sales during the Corona crisis.
With this “Bridging Aid III”, the maximum amounts are significantly increased. In the 2021 federal budget, a total of almost 40,000 million euros has been allocated to financial aid. The federal government also announced that it would provide more aid to companies that previously did not have access to November or December aid. The current bridging aid should now also be given to companies that have suffered a drop in sales of at least 40 percent compared to the respective month of the previous year. The threshold is generally higher for bridge aids.
The German trade association spoke of good news for many companies whose existence was in jeopardy due to the crown crisis and partial closure. Managing Director Stefan Genth said an association requirement had been met – that companies indirectly affected by the closures in the current Corona situation would be able to apply for bridging aid more easily. Faced with the stricter requirements for large companies, the trade had warned of dramatic consequences for companies. The federal and state governments had decided that in stores larger than 800 square meters, that is, in department stores and supermarkets, fewer customers would buy at the same time than before.
Scholz: The bankruptcy wave would be worse
Finance Minister Olaf Scholz said of financial aid: “We stand firmly on the side of those who bear the economic burden, we resolutely resist the crisis.” That costs a lot of money. A “wave of corporate bankruptcies” would be much more difficult. Economy Minister Peter Altmaier said those affected would not be left in the lurch. “We cannot make up for all the losses,” said the CDU politician. “But we have made available an instrument that is unparalleled in the history of the Federal Republic of Germany.”
Looking at the demands of the Union parliamentary group, for example, that states contribute more to the costs of the corona pandemic, Altmaier said: “In the coming months we will not be able to automatically repeat and continue everything that we are now doing correctly with a great deal, with good success. “
At the end of October, the federal and state governments decided to partially close: restaurants, cultural and leisure facilities had to close. This measure has been extended until shortly before Christmas so that fewer contacts reduce the persistently high number of infections.
Aid had already been launched in November for those affected. These grants can be requested from Wednesday. Altmaier reported strong demand and 28,000 applications so far. The first installments must be done quickly. This is an advance on subsequent payments without further examination. For the vast majority of companies, grants will be awarded amounting to 75 percent of average turnover in November 2019. The federal government expects a financial volume of 14 to 15 billion euros.
Flat-rate operating costs for freelancers
Aid is also planned in December. Scholz said the federal government expects a volume of at least 15 billion euros. It could be even more. December aid should work on the model of November aid. Therefore, there should be subsidies of up to 75 percent of sales for the same month last year. The EU Commission has yet to give its approval.
To help businesses generally prepare for longer-term aid, bridging aid will run through the summer of 2021. There is more money, too. Instead of the previous maximum of € 50,000 per month, the new maximum funding for “Bridging Aid III” is up to € 200,000 per month.
A “reboot aid” is also planned for freelancers and artists. There should be a flat rate operating cost of up to 5000 euros. “The Neustarthilfe is therefore a central support offering for many lone fighters in the media and culture industry,” he said. There has been criticism from these areas for a long time because those affected have not received enough help so far.
