Exceptional financial assistance
The COVID-19 restrictions imposed in November are impacting on many businesses and self-employed people. To support them, the German government has launched swift, unbureaucratic assistance worth up to 10 billion euros. Federal Economic Affairs Minister Peter Altmaier and Federal Finance Minister Olaf Scholz have now unveiled the details of the exceptional financial assistance scheme.
Support during the pandemic. the German government has launched assistance for the month of November.
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On a blue background the diagram is headed "Exceptional financial assistance in November".
Under the heading are three bullet points:
Support for businesses, companies, self-employed individuals and institutions affected by temporary closures in November
Subsidies equivalent to up to 75 per cent of average weekly turnover in November 2019
Own-account workers, including artists, can otherwise base their claim on their average weekly turnover in 2019
Foto: Bundesregierung
The exceptional financial assistance for the month of November offers broad central support for companies, businesses, the self-employed, associations and institutions that are particularly hard hit by the latest COVID-19 restrictions. The details have now been unveiled by Federal Finance Minister Olaf Scholz and Federal Economic Affairs Minister Peter Altmaier.
The German government is thus supporting businesses and self-employed individuals who are directly and indirectly affected:
- The November assistance will grant subsidies for each week of closure equivalent to 75 per cent of average weekly turnover in November 2019 up to a maximum sum of one million euros, provided this is permissible under State-aid law as it affects the companies.
- Own-account workers can otherwise base claims on their average weekly turnover in 2019 rather than their weekly turnover in November 2019.
- Individuals entitled to apply for assistance, who opened their businesses after 31 October 2019 may base their claims on their average weekly turnover in October 2020 or on their average weekly turnover since the business was founded.
- The rules apply to businesses, the self-employed and own-account workers – especially but not exclusively those working in the cultural and events sector.
Businesses directly affected include businesses, self-employed individuals, associations and institutions which have been required to suspend their business operations as a result of the decision taken by the federal and state governments on 28 October 2020. Hotels are deemed to be directly affected businesses. Indirectly affected businesses include all those that can provide evidence that they regularly generate 80 per cent of their turnover from their business with companies that are directly affected by closures.
Interim financial assistance to be extended
The interim financial assistance is to be extended and significantly improved for the worst affected branches. KfW rapid loans are to be made available to companies with fewer than 10 employees. The rules apply to businesses, the self-employed and own-account workers – especially but not exclusively those working in the cultural and events sector.
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