Way clear for corona direct aid to small companies

way clear for corona direct aid to small companies

In the corona crisis, the disbursement of direct aid to millions of small companies, solo self-employed and freelancers is expected to begin in the next few days. Farmers should also be supported.

In total, federal funding of up to 50 billion euros is at stake. Federal and state governments reached an administrative agreement, according to the ministry of finance and the ministry of economics. This has allowed the states to draw down federal funds as of monday to disburse grants quickly and unbureaucratically.

Due to the drastic effects of the corona crisis, many self-employed people fear for their livelihoods – for example, musicians, photographers, artists, alternative practitioners, interpreters and nurses. Many businesses had to close, trade fairs, events and concerts were canceled. Orders and sales of many solo-self-employed have collapsed.

The goal of the program is to bridge liquidity shortages at companies that typically do not receive loans and have no collateral or other income. In concrete terms, companies with up to five employees will receive a one-off payment of 9,000 euros for three months, while companies with up to ten employees will receive 15 euros.000 euro.

Federal economics minister peter altmaier (CDU) said the federal government’s emergency aid also applies to farmers. "Because just as for other small businesses, freelancers and self-employed, the need of many farmers is currently high."Federal agriculture minister julia klockner (CDU) spoke of an important signal for agriculture and forestry. "We have successfully lobbied for the entire industry to come under the umbrella of the aid program."The aim is to support and maintain domestic production.

Applicants must certify that they have experienced economic difficulties as a result of the corona pandemic. The companies were not allowed to register on 31 december. December have found themselves in financial difficulties. The applications can be made through the offices of the countries, mostly state-owned banks or investment banks.

The federal government expects three million self-employed people and microenterprises to take advantage of the program, which is worth billions of euros. The federal cabinet had approved the program a week ago.

Altmaier said: "with this, we are responding to the need of many small businesses, self-employed people, freelancers and farmers, who are in urgent need of this assistance."The federal budget of up to 50 billion euros could be called up by the states as of this monday. Federal finance minister olaf scholz (SPD) said it was good that the federal government and the federal states were working so closely together to ensure that the aid reached those affected on the ground in good time.

In order to be able to finance the billions of euros in aid for small companies, as well as more money for hospitals, the bundestag passed a supplementary budget of 156 billion euros last wednesday. For this purpose, the bundestag had used an emergency rule in the debt brake anchored in the basic law.

In order to cushion the economic consequences of the pandemic and protect jobs, in addition to the program for small companies, a rescue fund for large companies has been agreed, through which the state can take a stake in ailing groups if necessary.

In addition, a special loan program is already in place for all companies through the state-owned forderbank k to secure the liquidity of companies. In the economy, however, there is criticism of the aid package. Business associations call for direct subsidies for small and medium-sized businesses, and say loan applications are too time-consuming and take too long to process.

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