Federal Finance Minister Olaf Scholz stressed that micro enterprises, freelancers and one-person businesses now need special support, since the crisis has hit them hard. "That is why the federal government is now providing swift, unbureaucratic emergency assistance." It is a non-repayable grant, stressed Olaf Scholz, not a loan. "Nothing needs to be repaid."
No gap in our solidarity
"We won’t leave anybody alone," said Federal Minister for Economic Affairs Peter Altmaier. There cannot and must not be a "gap in our solidarity".
To support micro enterprises, freelancers and one-person businesses who have taken an economic hit from the coronavirus pandemic, the German government has put together an emergency assistance programme worth 50 billion euros. The package comprises the following measures:
- Businesses with up to five (full-time equivalent) employees can apply for a one-off payment of up to 9,000 euros for a period of three months.
- Businesses with up to ten (full-time equivalent) employees can apply for a one-off payment of up to 15,000 euros for a period of three months.
- Where landlords lower rent by a minimum of 20 per cent, any remaining funds from the one-off payment can be used for another two months.
The funds can bridge liquidity gaps
The corona emergency assistance is there to help micro enterprises, freelancers and one-person businesses overcome acute liquidity shortfalls. The assistance is designed to meet overheads such as rent, loans for company premises and leasing payments. The individual federal states and local authorities will be responsible for approving applications.