Small hairdressing salons were among the companies that were particularly dependent on state corona aid.
Photo: Imago Images/Frank Hoermann/Sven Simon
No sooner had the federal and state governments announced that almost all corona restrictions should be lifted in March than Federal Finance Minister Christian Lindner announced that everything would remain the same for the economy. “We are once again supporting the companies that are still affected by the slump in sales with a temporary extension of the economic aid,” the FDP politician announced to the public last week. Corona economic aid will initially be extended until the summer.
This also means that politicians continue to use a confusing toolbox. There are special hardship aids, tax aid, KfW programs, sureties and guarantees as well as a special fund for cultural events. The most important program that was extended until the end of June is »Bridging Aid IV«. Companies continue to receive a pro rata reimbursement of fixed costs. In addition, companies that are particularly hard hit by the corona pandemic can receive an equity grant.
A prerequisite for a successful application is still a corona-related drop in sales of 30 percent compared to the reference period 2019. The maximum subsidy rate – for this the sales must have fallen by more than 70 percent – is 90 percent of the “eligible” fixed costs. Rent or lease, interest expenses for loans, expenses for maintenance and insurance can still be claimed.
The support of so-called solo self-employed people, which the federal government believes has been »tried and true«, will also be continued. With the “Restart Aid 2022 Second Quarter” they can receive up to 1500 euros per month, for a total of up to 4500 euros for the now extended funding period from April to June 2022.
This restart aid is aimed at the many affected people who are experiencing a loss in sales due to the corona virus, but who can hardly benefit from the bridging aid due to minimal fixed costs. Temporary or non-permanent employees can also submit an application. Even corporations and cooperatives may be eligible to apply.
According to the Federal Ministry of Economics, aid for the economy of officially “about” 78 billion euros has been paid out and 55 billion granted as a loan since the beginning of the corona crisis. In addition, there are expenses for short-time work benefits. According to the Federal Employment Agency, around 24 billion euros were paid in 2020 and 2021 for partial replacement of wages in the event of a temporary loss of work and 18 billion euros for social benefits from short-time work. “This comprehensive aid has stabilized the economy and the labor market and has had an effect,” says Roland Habeck from the Federal Ministry of Economics (Bündnis 90/Die Grünen).
All in all, politicians and economists had originally expected significantly more. For the traffic light finance minister Lindner, who had actually taken office as savings commissioner, this created the opportunity, as the first official act, to reallocate credit authorizations of over 60 billion euros to the energy and climate fund. Lindner’s interpretation of the debt brake is at least legally controversial.
There are also different views on the extension of the bridging aid. The Freiburg researcher and Lindner consultant Lars Feld and Ifo President Clemens Fuest have already criticized the permanent aid. If there are no more restrictions, politics no longer has to compensate.
The Bremen economist Rudolf Hickel sees it differently: “There can be no question of a recovery of the crafts, gastronomy and other small businesses,” he said to the “nd”. Those would now have to be made fit for a restart. Accompanying rescue measures are also cheaper overall than the exit of other companies.
However, there had always been criticism of the practice of corona aid. At the beginning of the pandemic, aid was paid out to the self-employed and craftsmen with low incomes in a very unbureaucratic manner. The federal and state governments wanted to prevent the lockdown from leading to business closures. Nevertheless, many promised rescue funds were apparently not paid out for months.
In the meantime, it is being checked – but whether everyone was really fully entitled. The result is sometimes high refunds. A hairdresser from Munzingen in Baden now turned to the mayor and the media with an emotional call for help. And in Hamburg, the Verdi union considers some of the claims to self-employed workers to be unjustified and is offering them legal protection.
So that companies and freelancers can now get the new bridging aid announced by Lindner, the ministries must first revise the old programs. Then an application via the platform Ueberbrueckungshilfe-unternehmen.de should be possible again. “In a timely manner,” as the minister assures.