Measures and support programmes to safeguard liquidity during the coronavirus crisis
Author of this article
Martina Frömming
Manager
THE FOLLOWING MEASURES SHOULD BE TAKEN NOW IF YOU ARE EXPERIENCING FINANCIAL DIFFICULTIES:
- Application for emergency aid from the Federal Government or the Federal States (Länder)
- Deferral of social security contributions
- Deferral of tax payments
- Deferral of loan repayments
- Deferral of rent or lease payments
- Application for short-time working benefits
- Application for loans under the KfW special programmes or immediate loans with KfW reinsurance
First of all, an important note: Deferrals do not, in principle, lead to the abandonment of the obligation to perform.
APPLICATION FOR EMERGENCY AID FROM THE FEDERAL GOVERNMENT OR THE FEDERAL STATES
Due to the COVID 19 pandemic, the Federal Government and the Federal States have initiated a comprehensive one-off emergency aid programme. The federal government assistance is intended to help self-employed persons and companies with up to 10 employees. The federal state programmes are designed to support companies with 11 to 49 employees. It should be noted that the payments are taxable as income.
USEFUL LINKS AND INFORMATION:
Federal government emergency aid
https://www.bmwi.de/Redaktion/DE/Coronavirus/coronahilfe.html
Federal states emergency aid
Niedersachen: https://www.nbank.de/Unternehmen/Investition-Wachstum/Niedersachsen-Soforthilfe-Corona/index.jsp
Bremen: https://www.bab-bremen.de/bab/corona-soforthilfe.html
Bremerhaven: https://www.bis-bremerhaven.de/foerderung/corona-soforthilfe.99089.html
Hamburg: https://www.ifbhh.de/foerderprogramm/hcs
Schleswig-Holstein: https://www.ib-sh.de/infoseite/corona-beratung-fuer-unternehmen/
Access to the funding programmes of other federal states can also be found on the website of the Federal Ministry of Economic Affairs and Energy:
https://www.bmwi.de/Redaktion/DE/Coronavirus/coronahilfe.html
DEFERRAL OF SOCIAL SECURITY CONTRIBUTIONS
The National Association of Statutory Health Insurance Funds (GKV-Spitzenverband) published a press release on 25 March 2020. According to this press release, employers can apply to their health insurance company responsible for collecting contributions to defer payments for the months of March and April. This is subject to the condition that other support and assistance measures such as subsidies and loans as well as the application for short-time working benefits have already been used as a matter of priority, and that any funds released from these have been used for the payment of social security contributions, including the funds deferred until then, after they have been made available.
SOURCE REFERENCE:
DEFERRAL OF TAX PAYMENTS
The Federal Ministry of Finance has decided on tax aid for companies. Companies can submit simplified applications for deferral of tax payments due, and for adjustment of advance payments. The point of contact is the tax office responsible for your company.
SOURCE REFERENCE:
USEFUL LINKS AND INFORMATION:
Niedersachsen: https://www.mf.niedersachsen.de/startseite/themen/steuern/antworten-auf-haufig-gestellte-steuerliche-fragen-faqs-im-zusammenhang-mit-dem-corona-virus-186548.html
Hamburg: https://www.hamburg.de/fb/formulare/
Bremen: https://www.finanzen.bremen.de/startseite/coronavirus-78075
Schleswig-Holstein: https://www.schleswig-holstein.de/DE/Landesregierung/VI/Presse/PI/2020/200316_steuerstundungen.html
For further information on other federal states, please contact the respective tax office.
DEFERRAL OF LOAN REPAYMENTS
Please contact the financing banks as soon as possible to negotiate the suspension of repayments due to the liquidity shortages caused by the COVID 19 pandemic.
DEFERRAL OF RENT OR LEASE PAYMENTS
On 27 March 2020, the law to mitigate the consequences of the COVID 19 pandemic was passed in the German Bundestag. The law contains important changes in the relationship between tenant and landlord. If the tenant is unable to pay his rent debts for the period until 30 June 2020 due to the spread of the SARS-CoV-2 virus, the landlord may not terminate the tenancy for this reason until 30 September 2022. As with the credit payments, a written deferral arrangement should always be agreed with the landlord.
SOURCE REFERENCE:
APPLICATION FOR SHORT-TIME WORKING BENEFITS
A common measure taken in times of crisis is to apply for short-time working benefits.
USEFUL LINKS AND INFORMATION:
General information on short-time working
https://www.arbeitsagentur.de/news/corona-virus-informationen-fuer-unternehmen-zum-kurzarbeitergeld
Notification of reduced working hours
https://www.arbeitsagentur.de/datei/anzeige-kug101_ba013134.pdf
Application for short-time working benefits (Antrag auf Kurzarbeitergeld – KUG) – Application for benefits
https://www.arbeitsagentur.de/datei/antrag-kug107_ba015344.pdf
Information on the application procedure
https://www.arbeitsagentur.de/datei/hinweise-kurzarbeitergeld_ba014273.pdf
Calculation table (full-time employees)
https://www.arbeitsagentur.de/datei/kug050-2016_ba014803.pdf
Calculation table (part-time employees)
https://www.arbeitsagentur.de/datei/kug51-tabelle-2016_ba015003.pdf
Information sheet
https://www.arbeitsagentur.de/datei/merkblatt-8a-kurzarbeitergeld_ba015385.pdf
APPLICATION FOR LOANS UNDER THE KFW-SPECIAL PROGRAMMES OR IMMEDIATE LOANS WITH KFW-REINSURANCE
Another possibility for obtaining liquidity is to take out loans under the KfW special programmes with KfW reinsurance or the KfW instant loan with 100% risk assumption by the Federal Government. You can apply for KfW loans with your house bank or savings bank.
USEFUL LINKS AND INFORMATION:
Information on instant loans:
https://www.bmwi.de/Redaktion/DE/Pressemitteilungen/2020/20200406-bundesregierung-beschliesst-weitergehenden-kfw-schnellkredit-fuer-den-mittelstand.html
Information on KfW-loans for companies:
https://www.kfw.de/KfW-Konzern/Newsroom/Aktuelles/KfW-Corona-Hilfe-Unternehmen.html