Date: August 15, 2024. Authors: Johanne Bischoff
Photo: dpa | Carmen Jaspersen
Around 12,000 micro-entrepreneurs and self-employed individuals are expected to partially repay their Corona emergency aid. According to the economics department, this amounts to up to 20 million euros.
It has been more than four years since Corona reached Germany. In order to counteract the spread of the virus, which was almost unknown at the time, the federal and state governments repeatedly imposed lockdowns – difficult times for companies and self-employed people. Hair salons and cosmetic studios, artists and the catering industry were among those affected.
In March 2020, the state of Bremen decided to launch emergency aid for self-employed individuals and micro-enterprises. Those affected by the lockdown could apply for aid of up to 15,000 euros for the months of March, April and May 2020.
Payments were made subject to reservation
The amount of aid was initially based on estimates by the applicants themselves. According to the Economic Authority, around 18,000 entrepreneurs in the state of Bremen had submitted applications for this financial support. Around 13,000 of these were approved.
At the time, the payments were made subject to reservations. Now both the Federal Audit Office and the State Audit Office are calling on the economic department to tackle the final audit and settlement: “We are not the first federal state where these repayment procedures are now pending. Bavaria and Lower Saxony, for example, have already completed this,” explains the economic authority.
“We are relying on a simple reporting procedure. The entrepreneurs receiving funding will have to provide a self-disclosure,” the department explains the approach. Among other things, they plan to set up an online portal.
So far, around 500 affected people have repaid excess subsidies. Some cases have already been randomly checked by the authorities. These random checks have shown that up to 70 percent of self-employed individuals and micro-entrepreneurs have received too much money and are required to repay it. On average, this amounts to around 3,000 euros per case.
Impact on those affected cannot be foreseen
The Chamber of Crafts can fundamentally understand the approach: “The fact that aid which subsequently turns out not to have been necessary has to be repaid is in the nature of things and therefore cannot be assessed.”
The aid was an important liquidity bridge, especially for small businesses without a large financial cushion, which enabled them to continue paying running costs such as rent and salaries. “However, quite a few self-employed craftsmen and women complained that their entrepreneurial income was not covered by the aid and that they therefore had to use their savings or reserves for retirement provision or apply for unemployment benefit II,” says the Chamber of Crafts. It is not yet possible to assess what effects the repayments would have in individual cases.
The deadline is now running out
The already extended deadline for independent reversal will now expire at the end of September. The approximately 12,000 micro-enterprises and self-employed persons who have received support and who have not yet reported in can now expect to receive mail from the Economic Authority if the Senate goes along with the plans on August 20.
The economics department assumes that the repayments could amount to up to 20 million euros. It is realistic that 15 million euros will ultimately flow back to the state of Bremen and the federal government. The vast majority of this will go to the federal government.
A total of 13 billion euros were distributed to around 1.8 million people affected nationwide. In addition, most federal states, including Bremen, received state funds totaling more than three billion euros.
More on Corona aid in the state of Bremen:
Those: outside and inside.
This topic in the program:
Bremen Eins, News, August 15, 2024, 6 a.m.
