States implement the decision of the Federal Government: This is what the Corona emergency aid in NRW looks like
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States implement the decision of the Federal Government: This is what the Corona emergency aid in NRW looks like

On Monday, the federal government launched an emergency aid program during the Corona crisis. The states are implementing the federal government’s decision. We analyse the specific measures in North Rhine-Westphalia and other federal states for you.

A few days ago, we presented the Corona emergency aid decided by the federal government in detail. Now North Rhine-Westphalia, as the most populous federal state with a strong economy, has cast the implementation into a specific form:

The Corona emergency aid in North Rhine-Westphalia

What are the application requirements?

The emergency aid in NRW is aimed at applicants who

  • are permanently active on the market as companies, freelancers or self-employed persons with their main income
  • have their headquarters in NRW,
  • have already offered their own goods or services before 1 December 2019, and
  • were not in economic difficulties up to 31 December

If these three conditions are met, the country provides emergency aid.

The authorities base their assessment of the applications on significant funding shortfalls. These apply when

  • in the month in which the application was submitted, there has been a turnover decrease of at least 50 per cent compared to the average monthly turnover of the previous year, or
  • the business was closed down by order of the authorities because of the Corona crisis (which is practically the case for restaurants and hairdressers), or
  • the available funds are not sufficient to pay short-term liabilities.

How much emergency aid is available in NRW?

Emergency aid is graduated according to the number of employees as of the cut-off date 31.12.2019. The entrepreneur is included here. The funds are provided for three months, the following rates apply:

  • 9,000 euros for eligible self-employed persons and eligible applicants with up to 5 employees
  • 15,000 euros for eligible applicants with up to 10 employees
  • 25,000 euros for eligible applicants with up to 50 employees

How do I apply for emergency aid and do I have to repay the funds later?

You do not have to pay back the emergency aid. Applications can be submitted to the relevant district governments from Friday, 27 March – online only. The deadline is 30 April 2020.

Please contact us as soon as possible so that we can take the necessary steps together.

At a glance: Emergency aid in other federal states

Of course, other federal states are also currently implementing or have already implemented the emergency aid provided by the federal government. Here is our overview.

Baden-Wuerttemberg

What are the application requirements in Baden-Württemberg?

Commercial and social enterprises can submit applications as well as self-employed persons, members of the liberal professions and artists.

Companies with up to 50 employees are eligible to apply if their head office is in Baden-Württemberg.

Self-employed persons and micro-enterprises are only eligible to apply if their self-employment accounts for at least one third of the net income of a household.

The state of Baden-Württemberg will not pay any subsidies if liquidity bottlenecks or sales slumps have already occurred before March 11, 2020.

Level of emergency aid in Baden-Württemberg

  • 9,000 euros for 3 months for eligible applicants with up to 5 employees
  • 15,000 euros for 3 months for eligible applicants with up to 10 employees
  • 30,000 euros for 3 months for eligible applicants with up to 50 employees

How do I apply for emergency aid and do I have to repay the funds later?

The emergency aid in Baden-Württemberg does not have to be repaid. Any applications can be submitted electronically to the relevant chambers (Chamber of Industry and Commerce, Chamber of Trade) from 25 March onwards.

Bavaria

What are the application requirements in Bavaria?

Here, all companies up to a size of 250 employees and independent members of the liberal professions are entitled to apply, provided their business premises are located in Bavaria. Before emergency aid is claimed, applicants must use their available private assets.

Level of emergency aid in Bavaria

  • up to 5 employees: 5.000 Euro
  • up to 10 employees: 7,500 euros
  • up to 50 employees: 15,000 euros
  • Up to 250 employees: 30,000 euros

How do I apply for emergency aid in Bavaria and do I have to repay the funds later?

The emergency aid in Bavaria does not have to be repaid. For the application there is a form which is printed, signed and scanned and sent by e-mail to the responsible authority. You can find these competent authorities here.

Berlin

The State of Berlin will provide two different types of emergency aid.

Emergency Aid I in Berlin

What are the application requirements for Emergency Aid I in Berlin?

Emergency Aid I is aimed at small and medium-sized enterprises with up to 250 employees.

Level of emergency aid I

Emergency Aid I consists of interest-free bridging loans of up to EUR 500,000 and a term of up to two years. In exceptional cases, loans of up to 2.5 million euros are granted at an interest rate of 4% p.a.

How do I apply for Emergency Aid I in Berlin?

You can apply for Emergency Aid I at the Investitionsbank Berlin.

Emergency Aid II in Berlin

What are the application requirements for Emergency Aid II in Berlin?

Emergency Aid II is aimed at micro-enterprises with up to 5 employees, freelancers and self-employed persons.

Level of emergency aid II

Details are not known yet. 100 million euros are available for Emergency Aid II until the end of the year.

Hessen

What are the application requirements in Hessen?

The state of Hesse is still working on the specific form of the implementation. We will keep you up to date on this here.

It is expected that the state will increase the federal measures. Hesse’s emergency aid will also be directed at companies with up to 50 employees as well as self-employed persons and members of the liberal professions.

Level of emergency aid in Hesse

  • 0 to 5 employees: 10.000 Euro
  • 6 to 10 employees: 20,000 euros
  • 11 to 50 employees: 30,000 euros

How do I apply for emergency aid in Hessen? Do I have to repay the funds later?

The application goes through the WIBank. The recipients do not have to repay the funds.

Lower Saxony

What are the application requirements in Lower Saxony?

Lower Saxony provides its own state subsidies. In addition, you can apply for emergency aid from the federal government. You can find all information on this here.

Lower Saxony’s state funds are aimed at companies, the self-employed, freelancers, artists and cultural workers. Start-ups that have been on the market for less than five years can also apply for the funds.

Level of emergency aid in Lower Saxony

  • up to 5 employees: 3.000 Euro
  • up to 10 employees: 5.000 Euro
  • up to 30 employees: 10.000 Euro
  • up to 49 employees: 20,000 Euro

How do I apply for emergency aid in Lower Saxony? Do I have to repay the funds later?

The respective funds are requested on the NBank client portal.

It is likely that companies will not have to repay the funds later. We do not have any specific information on this yet. But we will inform you about this as soon as possible here.

Our assessment

The states implement the decision of the Federal Government. By and large, the federal states are pulling in the same direction regarding the emergency aid. The political will to provide pragmatic support for the economy is unmistakable. Different applications are of no consequence.

It is important that you now compile and evaluate all necessary documents as quickly as possible. Therefore, we will be happy to help you evaluate your economic situation and make an application, regardless of the federal state.

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