Berlin Numerous small businesses and self-employed people in Germany have to return Corona aid. Due to the current pandemic situation, Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) want to give those affected more time. Habeck said on Friday in Berlin.
Specifically, it is about the emergency aid, with which companies and the self-employed could receive short-term liquidity aid of up to 15,000 euros in spring 2020 after the outbreak of the pandemic. Despite the current corona wave, the federal states had started to demand the return of the “Corona Emergency Aid” some time ago.
Despite Habeck’s announcement, those affected cannot rely on having more time. The reason is the complex rule structure. The emergency aid is federal funding. However, the federal states were authorized by administrative agreement for the payment and thus also for possible repayments.
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In a final report, the federal states must inform the federal government about the details of the emergency aid. The deadline for this report was originally set for the middle of this year. Habeck and Lindner are now extending this period by six months to the end of the year.
Greens call for rapid implementation by states
But that doesn’t mean that the countries have to stretch their repayment demands on the companies equally. In a letter shortly before Christmas, Habeck had already asked for more goodwill from the economics ministers of the federal states and brought a postponement of the final report deadline into play. Mecklenburg-Western Pomerania, for example, reacted by extending the deadline for those affected. Some countries had previously allowed deferrals on their own responsibility.
However, many other countries have so far stuck to their plans, which often provide for repayment within the next four weeks. In a second letter shortly after the New Year, Habeck reiterated his request according to Handelsblatt information and expressed concern that the repayment could again plunge those affected into liquidity bottlenecks.
To what extent the countries are now ready to move is unclear. The financial policy spokeswoman for the Greens, Katharina Beck, told the Handelsblatt: “It is now important that the federal states that have not already introduced generous deferral periods of their own accord, pass on the time gained to those affected.” That the federal government has the option of extending the deadline give, is a good sign: “The extension of the deadline can allow some relaxation in the current acute emergency situation of many.”
Beck sees another aspect: “It also enables us to now also examine the possibility of extended goodwill regulations for the first corona emergency aid, which is not always suitable.” Because what Habeck and Lindner have even less influence on are other points in the repayment modalities.
When the first lockdown came in March 2020, the federal government wanted to quickly secure the liquidity of the companies. In order to get the emergency aid, they had to assess whether their liquidity would be sufficient within the next three months.
Drops in sales or additional costs were not included in the calculation. But this is exactly what entrepreneurs and self-employed people often had to use the money for. In addition, the applicants could not claim any wages for themselves that they would otherwise have received from their own income. Some countries also charge interest on the repayments. Business associations are also outraged because some of the eligibility criteria have changed, so that the payment only became unlawful afterwards.
New help started
In addition to the postponement of emergency aid, Habeck announced the start of new aid on Friday. One week after the start of the application for the bridging aid IV, self-employed persons can now also submit their application for restart aid for the funding period from January to March 2022.
Depending on the amount of the corona-related loss of sales, up to 1500 euros per month are available via the 2022 restart aid. The restart aid is still aimed at those affected who are experiencing sales losses due to corona, but who hardly benefit from the bridging aid IV due to low fixed costs.
Also since Friday, the down payments for applicants for the IV bridging aid amounting to up to 50 percent of the amount of funding applied for or a maximum of EUR 100,000 per month of funding have started to be paid by the federal treasury. According to the Ministry of Economic Affairs, the first applicants will have their money in their accounts as early as next week.
More: Thousands and thousands of entrepreneurs and the self-employed should pay back Corona aid