Apply for corona bridging aid now

Deadline for bridging aid in the event of Corona-related loss of sales ends on August 31. Examination and application by tax consultant

Update:

The deadline for submitting the application was extended to September 30, 2020. The text has been adapted accordingly.

If your company or you as a freelancer, solo self-employed person, etc. are in a precarious or even emergency situation due to the coronavirus pandemic, you should apply for bridging assistance for small and medium-sized enterprises (SMEs) now. The application deadline for the funding provided for in the German government’s 25 billion euro economic stimulus and crisis management package ends on September 30, 2020. The aid can only be applied for by a tax consultant or auditor. I would be happy to support you.

What is behind the bridging assistance?

The German government wants to help companies whose sales have slumped significantly due to the coronavirus pandemic. Although there is no restriction to certain sectors, there is a focus on “particularly affected sectors”, as stated in the
key issues paper
of the government. These are mainly the companies that have found themselves in an emergency situation due to the corona-related closures, for example event agencies, restaurants, hotels, clubs and travel agencies. But solo self-employed people, freelancers and non-profit organizations can also benefit from coronavirus bridging assistance. Therefore, check your authorization. Funding is granted for three months from the date of application.

What is the difference between coronavirus bridging aid and emergency aid?

With the bridging aid for corona-related losses, you may be able to achieve a significantly higher funding amount than with the emergency aid.
Up to 150,000 euros of your fixed operating costs can be reimbursed
.

However, the hurdles for the application are also considerably higher. If the emergency aid – as its name suggests – was paid out immediately and without prior verification, you must provide evidence of lost sales for the bridging aid. However, it is not enough for you to document your fixed costs and defaults yourself; you must have them confirmed by a tax consultant or auditor. I would be happy to do this for you.

Under what conditions do you receive bridging assistance?

If you were or are forced to partially or completely cease your business activities due to the coronavirus pandemic, you can submit an application via a tax advisor (or accountant). To do so, at least 60% of your turnover must have been lost in April and May 2020. If this is the case, you can apply for funding for up to three months. Support is granted if your sales have fallen by at least 40% in at least one of these months. You can apply for funding for any consecutive period of three months between June and October. If your company was founded after April 2019, November and December 2019 will be used as a comparison period. However, your company must not have been in difficulty as of December 31, 2019 to be eligible for funding.

What will you be reimbursed with the Corona bridging aid?

You will only receive support for your fixed operating costs, e.g. rent, interest on business loans, leasing installments, personnel costs, etc. The bridging assistance does not cover your living expenses. The bridging assistance does not cover your living expenses. Contracts for which fixed operating costs are incurred must have already existed before March 31. So if, for example, you only bought a car in April and are financing it, you will be left empty-handed.

The scale for the reimbursement of fixed operating costs as part of the bridging assistance is as follows:

• • Drop in sales < 40%: No refund
  • Decrease in turnover between 40% and 50%: Reimbursement max. 40%
  • Decrease in turnover between 50% and 70%: Reimbursement max. 50%
  • Decrease in turnover >70%: Reimbursement max. 80%
  • Companies with max. 5 employees: reimbursement max. 9,000 euros*
  • Companies with max. 10 employees: reimbursement max. 15,000 euros*
  • Maximum reimbursement amount per company: 150,000 euros
  • Overpayments must be repaid

* These amounts should only be exceeded in justified exceptional cases

How can you apply for bridging assistance?

The application can only be submitted online by a tax consultant or auditor. The reason for this lies in the mandatory review of actual sales declines. I will be happy to take care of the application for you. I calculate your exact turnover and check which costs are fixed and which are variable. Your application only has a chance of success if you know the exact figures. I will also assist you in calculating the turnover after a further three months and will inform the responsible office of this.

What is the procedure?

When applying for Corona bridging assistance, I will first estimate your turnover in April/May 2020 on the basis of your financial accounting and provide a forecast of your fixed operating costs during the three months of support. If the conditions are met, I will apply for the grant for you online with the relevant supporting documents. After three months, I also check the actual sales during the funding period and submit them to the responsible office. Incidentally, the costs for the tax consultant’s services are also fixed business costs and therefore eligible for support.

Please contact me if you meet the conditions for bridging assistance. I look forward to hearing from you.