Germany extends financial aid for pandemic-hit businesses and the self-employed

Germany extends financial aid for pandemic-hit businesses and the self-employed
A sign for a bar in Hamburg urges people to register as part of Covid restrictions. Photo: picture alliance/dpa | Daniel Bockwoldt
Germany is extending funding for companies and self-employed people hit hard by Covid restrictions.

With closures in the first half of the year – and continuing tough restrictions – the German government has decided to extend access to extra cash support until the end of the year. 

The support will be granted up until December 30th 2021 as part of the ‘Bridging Assistance III Plus’ scheme. The assistance was due to expire at the end of September.

Companies which have suffered a drop in sales of at least 30 percent due to the Covid crisis can apply for the funding.

Through the aid, they can receive a staggered fixed cost reimbursement. The application must be submitted by a verified third party, such as a tax advisor.

READ ALSO: Is Germany doing enough to ensure small businesses survive the coronavirus crisis?

An equity grant, which is intended to offer a buffer for particularly hard-hit and persistently affected companies, will also be available beyond September until December, according to the Finance Ministry and the Economics and Technology Ministry.  

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Aid for the solo self-employed will also be extended for an extra three months.

For the period October to December, self-employed people, whose turnover has been restricted by the pandemic, can apply for “Restart Assistance Plus” and receive up to €4,500 in support.

“While things are looking up again for most sectors of the economy, the Corona-related restrictions in some industries are continuing,” the two ministries said, justifying the extension of the aid.

According to the federal government, however, the so-called “Restart Premium,” which was intended to ease the transition from lockdown to reopening, will not be continued because this has already “served its purpose,” it said.

For more information on the different types of support, check out the government’s site.

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