The offer is aimed at entrepreneurs who are significantly affected by the loss of sales as a result of government measures to combat the pandemic. These companies can now apply for Bridging Aid II for the months September to December 2020.
Bridging Aid II as a grant for fixed operating costs
As in the case of Bridging Aid I (funding period June to August 2020), Bridging Aid II provides grants towards fixed operating costs. Application requirements and the level of subsidies have improved from the point of view of the entrepreneurs.
Which companies will receive Bridging Aid II?
In principle, companies of all sizes (certain exclusion criteria exist), solo self-employed persons and self-employed members of the freelance professions in their main occupation are eligible to apply. They must meet at least one of the following two criteria:
Drop in sales of at least 50 percent in two consecutive months in the period April to August 2020 compared to the respective months of the previous year
Drop in sales of at least 30 percent on average in the months April to August 2020 compared to the same period last year
Subsidy amount Bridging Aid II
In the case of Bridging Aid II, fixed costs are subsidised for the months of September, October, November and December 2020. The amount of the subsidy is based on the planned drop in sales in the respective months of support compared with the same months in the previous year.
The Bridging Aid II reimburses a share of the eligible fixed costs in the amount of:
– 90 percent of eligible fixed costs in the event of a drop in sales > 70 percent
– 60 percent of eligible fixed costs in the event of a drop in sales ≥ 50 percent and ≤ 70 percent
– 40 percent of eligible fixed costs in the event of a drop in sales ≥ 30 percent and < 50 percent
Companies can apply for a maximum of 50,000 euros in Bridging Aid for each funding month. The maximum funding amount is therefore 200,000 euros.
Eligible costs will continue to be continuous fixed operating costs incurred during the period of eligibility and which are contractually defined or fixed by the authorities.
Changes in Bridging Aid II
New in the case of Bridging Aid II is that the number of employees no longer has any relevance for the maximum amount of reimbursement.
Whereas in the case of Bridging Aid I a cap was imposed on small and medium-sized companies with five (3,000 euros per month, max. 9,000 euros) and ten (5,000 euros per month, max. 15,000 euros) employees, companies can now apply for up to 50,000 euros per funding month.
The eligible fixed costs have (almost) not changed according to the current situation. What is new here is that the flat rate for personnel costs has been increased from 10 percent of eligible costs to 20 percent. However, entrepreneurs‘ wages are still not eligible for funding.
The application will continue to be submitted by an examining third party via the digital application portal of the Federal Ministry of Economics and Technology, as was the case for the first phase of the Bridging Aid.
As we were already listed in the digital application portal during the first Bridging Aid, we are therefore directly able to submit applications for you. These applications must be submitted for you by 31 December 2020.
Our first impression is that the strict application requirements for Bridging Aid I have been reasonably eased and that there are probably more opportunities to apply for Bridging Aid II.
To combine the maximum funding amounts for companies with up to five or ten employees and to allow a maximum funding of up to € 50,000 per funding month should be particularly welcome for micro-enterprises with high fixed costs.
But beware! There are again many exceptions. The official catalogue of questions and answers is now already 30 pages long. Companies must therefore always check regulations individually.
Contact us at any time so that we can guide you through the application process.