The Limited Times

Now you can see non-English news...

Federal government with new corona aid worth billions: Affected companies should be supported


The federal government wants to help companies again and get new Corona aid off the ground. How this will affect the federal budget was initially unclear.

The federal government wants to help companies again and get new Corona aid off the ground.

How this will affect the federal budget was initially unclear.

Berlin - Particularly burdened companies are to be supported in the Corona crisis * with additional aid worth billions.

The federal government wants to initiate further grants.

Improvements are also planned for the core instrument of aid policy, Bridging Aid III, as the Federal Ministry of Finance and the Federal Ministry of Economics announced in Berlin on Thursday.

According to information from the

German Press Agency, the

new aid is likely to

cost billions.

Companies that are particularly hard hit by closings for a very long time should receive a new equity grant.

Specifically, this is planned for companies that have suffered a drop in sales of more than 50 percent in at least three months since November 2020.

New corona aid from the federal government: focus on particularly stressed companies

The new aid is a reaction to the fact that, according to associations, many companies have used up their financial reserves.

The grant is to be granted in addition to the regular funding for Bridging Aid III - on the basis of the existing platform in order to ensure rapid implementation.

During the consultations with the heads of government of the federal states last week, the federal government announced additional corona aid for particularly stressed companies.

The finance and economics ministries had negotiated the new aid in the past few days.

Finance Minister Olaf Scholz said that the federal government's aid policy meant that Germany got through the pandemic much better economically than comparable countries.

Nonetheless, over time, the crisis will get to the core of the company.

"That's why we're now adding a lot more to the aid."

Corona aid from the federal government: The substance of the company is to be strengthened by means of an equity contribution

Economics Minister Peter Altmaier said that some branches of the economy have been closed for over half a year.

An additional offer of help is now being made to these companies.

With the equity grant, the substance of these companies should be strengthened.

According to the ministries, the new equity grant is staggered: the longer a company has had a drop in sales of at least 50 percent, the higher the grant.

This is based on the amount that a company is reimbursed for fixed costs from Bridging Aid III - this includes rents and leases, interest expenses for loans, expenses for electricity and insurance.

Specifically, the new subsidy will be paid from the third month of the slump in sales and will amount to 25 percent this month - with a fourth month it increases to 35 percent, with five or more months to 40 percent.

Corona help: Special depreciation options should relieve companies

The ministries gave an example: In January, February and March 2021, a company has a drop in sales of 55 percent and fixed operating costs of 10,000 euros each month.

When applying for bridging aid III, the company receives regular funding of 6,000 euros for each of the three months.

What is new is that this company will also receive an equity grant of 1500 euros for March.

According to the information, one of the improvements in Bridging Aid III is that special depreciation options for seasonal goods and perishable goods for retailers will be expanded to include manufacturers and wholesalers - that was a demand from industry associations.

For companies in the event and travel industry, a “start-up aid” of 20 percent of the wage bill is provided in addition to a general flat-rate allowance for personnel costs.

The event and culture industry should also be able to claim downtime and preparation costs that were incurred up to 12 months before the start of the planned event date.

New corona aid from the federal government: travel industry welcomes support

The travel industry, which has been badly affected by the pandemic, welcomed the new aid.

"For almost a year now, the many travel agencies, tour operators and also the other companies in the tourism industry have hardly had any business, so this assistance is urgently needed to secure a livelihood," said the President of the German Travel Association (DRV), Norbert Fiebig.

At the same time, he called for the bridging aid to be extended until the end of the year, as it will still take some time before the travel business really starts up again.

The German Retail Association (HDE) criticized the federal government for leaving small and large retail companies out in the rain.

Larger, owner-managed companies would not be adequately taken into account in the aid.

According to the HDE, there are no options for owners of smaller businesses to take entrepreneurial wages into account.

Corona state aid: Effects on federal budget initially unclear

It was initially unclear what effects the new aid would have on the federal budget.

Scholz had to increase the budget for the current year by around 60 billion euros.

This also includes an additional 25.5 billion euros for extended corporate aid due to the longer-lasting lockdown.

A total of 65 billion euros are now planned for corporate aid for 2021.

Internally, however, it was pointed out that many of the funds planned in the budget in 2020 were not called because the economy picked up sharply in the summer.

Scholz wants to take out around 240 billion euros in new loans in the current year to shoulder the costs of the pandemic.

Billions in new debts are also planned for 2022.

During the crisis, the federal government decided on comprehensive aid programs.

Business associations, however, repeatedly criticize that aid arrives too late and that the funding system is too complex.

Most recently, the federal and state governments agreed on a hardship fund for companies that had previously fallen through the cracks.

(dpa / fmü)

* is an offer from IPPEN.MEDIA

Source: merkur

All news articles on 2021-04-01

You may like

Trends 24h

News/Politics 2021-06-24T12:21:20.752Z


© Communities 2019 - Privacy