Which country is not free
The way for granting the Corona-Bundes-emergency aid is free Implementation by the federal states is available
The implementation of the federal emergency aid for self-employed persons, small businesses, freelancers and farmers by the states is available. The Federal Ministry of Economics and the Federal Ministry of Finance have agreed on an administrative agreement with the federal states. Bavaria - as the current chairman of the Prime Minister's Conference - coordinated the negotiations on the part of the federal states. With the administrative agreement and the associated enforcement aid for the federal states, all the necessary prerequisites have been created. This means that applications for immediate help can be submitted to the contact persons listed below in the countries in the next few days. The payment should be made quickly and unbureaucratically.
Federal Minister of Economics Altmaier on this: “The federal government and the states have jointly created the necessary conditions for a quick application and payment of the Corona emergency aid in record time. We are responding to the plight of many small businesses, self-employed, freelancers and farmers who urgently need this aid. Applications and payments should be processed quickly and unbureaucratically. The federal government's budget of up to 50 billion euros can be accessed by the federal states from this Monday. "
Federal Minister of Finance Olaf Scholz: "The federal and state governments have worked very quickly to be able to sharpen the Corona emergency aid now. Solo self-employed and companies with up to ten employees can receive subsidies for their operating costs - a total of 50 billion euros are available for this. The federal states can access these from tomorrow (Monday) in order to pay out the grants quickly and unbureaucratically. It is good that the federal government and the federal states are working so closely together so that the aid reaches those affected quickly. "
The Bavarian Minister of Economic Affairs Hubert Aiwanger stated: “Bavaria has launched the first emergency aid program in Germany. It is good that the federal government has now followed us and that we have interlinked the programs in the interests of the companies. It is important that people get the money quickly and unbureaucratically. In Bavaria we are currently working on an online application, which will be programmed in the next few days and which will further accelerate the process. "
On March 23, 2020, the federal cabinet approved emergency aid for small businesses, self-employed people, freelancers and farmers in the amount of up to 50 billion euros. The Bundestag and Bundesrat discussed the resolutions together with the supplementary budget. The entire package passed the Federal Council on March 27, 2020. The administrative agreement between the federal government and the federal states, which is necessary for the implementation and payment of the funds, was agreed between the federal government and the federal states today, Sunday. The federal funds will be available to the federal states from Monday (March 30, 2020) and can be accessed by the federal states. This means that the application and payment can begin in the next few days.
You will find an overview of the responsible bodies in the countries in the following overview.
You will also find a brief overview below with the most important questions, e.g. who can submit an application and what information is required for the application.
Core content of the administrative agreement: who can submit an application and where?
The administrative agreement, including the implementation regulations, makes it clear who can submit their application and where. Below is an overview.
- Eligible to apply: are self-employed, members of the liberal professions and small businesses including farmers with up to 10 employees (full-time equivalents) who are economically active in the market as a company. They must carry out their work from a domestic permanent establishment or a domestic seat of management and be registered with a German tax office.
- Scope of emergency aid: The emergency aid serves to secure the economic existence of the company and to bridge acute liquidity bottlenecks as a result of the Corona crisis. Companies or self-employed people from all economic sectors with up to 5 employees can apply for a one-time grant of up to 9,000 euros for three months, companies with up to 10 employees for a one-time grant of up to 15,000 euros, also for three months.
- Proof of the liquidity bottleneck caused by the corona crisis: The applicant must assure that he has got into economic difficulties as a result of the corona pandemic. Applicant companies must not have already been in financial difficulties on December 31, 2019.
- Payout via the countries: Countries have taken over the implementation and payment of the aid. You can find a list of contact persons below.
- Unbureaucratic application process: The emergency aid program deliberately dispenses with a bureaucratic application process in order to guarantee a quick and unbureaucratic payment. The information on the application must, however, be correct - incorrect information can constitute the offense of subsidy fraud and lead to corresponding criminal penalties. Applications can soon be submitted electronically to the relevant contact person in the federal states.
- Application and payment deadline: Applications must be submitted to the competent state authority by May 31, 2020 at the latest.
- Cumulation with other grants and tax relevance: An accumulation with other aids in connection with the corona pandemic is basically possible. However, overcompensation has to be paid back. So that the grant now, when it is important, goes fully to the benefit of the companies, it will not be taken into account in the tax prepayments for 2020. Although the grant is generally taxable, this only has an effect if the tax return has to be submitted for 2020, i.e. next year at the earliest. The individual tax rate will only be due on the subsidy if a positive profit was generated in 2020.
Overview of the competent authorities or bodies in the countries:
(Note: The named contact persons can be contacted for both state emergency aid and federal emergency aid):
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