The federal government is extending, simplifying and expanding the bridging aid. This is intended to cushion the economic consequences of the November lockdown. This measure is aimed at small and medium-sized companies that had to stop or severely restrict their business operations in the wake of the corona pandemic. The aim is to secure livelihoods economically.
The federal government is extending, simplifying and expanding the bridging aid. This is intended to cushion the economic consequences of the November lockdown. This measure is aimed at small and medium-sized companies that had to stop or severely restrict their business operations in the wake of the corona pandemic. The aim is to secure livelihoods economically.
Since the end of October, applications for the new bridging allowance for the period from September to December 2020 can be submitted nationwide. Affected small and medium-sized companies, self-employed and non-profit organizations are to be supported with the “Bridging Aid II”. The focus is on non-repayable subsidies for fixed operational costs.
Who can apply for bridging aid?
Eligible to apply are companies that have either suffered a drop in sales of at least 50 percent in two consecutive months (April to August 2020) compared to the same months of the previous year, or that had an average drop in sales of at least 30 percent per month in the same period. Solo entrepreneurs, freelancers and non-profit companies and institutions can also apply.
No bridging aid is granted in the event of a decline in sales of less than 30 percent.
How much is the bridging allowance?
The amount of the bridging aid depends on the operational fixed costs and the extent of the decline in sales. The basis is the expected drop in sales in the funding months from September to December 2020 in relation to the respective comparison months in the previous year. Eligible fixed costs include rents and leases, financing costs, other fixed expenses, costs for trainees and property taxes.
The bridging allowance reimburses a portion of
- 90 percent of the eligible fixed costs in the event of a drop in sales> 70 percent
- 60 percent of the eligible fixed costs in the event of a drop in sales of ≥ 50 percent and ≤ 70 percent
- 40 percent of the eligible fixed costs in the event of a drop in sales ≥ 30 percent and <50 percent
in the funding month compared to the same month last year. If companies were founded between September 1, 2019 and October 31, 2019, the months of November 2019 to February 2020 are used for comparison.
The calculation is made individually for each month. If the drop in sales in a funding month is less than 30 percent compared to the same month, the bridging aid for the respective funding month does not apply.
The maximum funding is 50,000 euros per month.
Can staff costs be reimbursed?
A lump sum can support staff who have not yet been sent on short-time work. This flat rate increases from 10 percent to 20 percent of the eligible operational fixed costs. The aim is to help entrepreneurs who continue to keep employees.
How are applications made?
The application for bridging aid is made and submitted digitally. This is done by a “third party auditing” (tax advisor, auditor, sworn auditor, lawyer). The licensing office of the federal states is responsible for processing and paying out.
Until when can the applications be submitted?
No more applications can be submitted for the first phase of the bridging aid (funding period June to August 2020). The current bridging allowance relates to the months of September to December 2020. A one-off application can be made for it – also retrospectively – by December 31, 2020 at the latest.
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