Corona help
The federal government wants to support showmen more
Many showmen dismantle their huts. They should receive further financial help from the federal government. Photo: Matthias Bein / dpa-Zentralbild / dpa
© dpa-infocom GmbH
The showmen in need because of the stricter corona rules should be supported by the federal government. The first details are now known.
Companies particularly affected by corona-related closings, such as showmen, receive additional state aid. You will receive an improved equity grant, as announced by the Federal Ministry of Finance and the Federal Ministry of Economics in Berlin.
This extended funding is intended primarily for showmen, market people and private organizers of canceled Advent and Christmas markets.
Cutbacks for highest aids
The communication also states that there will be a reduction in the maximum funding rates as part of the extension of the bridging allowance. So far, companies have received reimbursement of up to 100 percent of their operational fixed costs such as rents and leases or expenses for electricity and insurance in the event of a corona-related drop in sales of more than 70 percent – in future it should only be 90 percent.
The bridging aid, which was previously limited to the end of the year, as a central crisis instrument of the federal government, will be extended until the end of March 2022. The federal government had already decided that in principle. “This gives companies security and support if they continue to suffer from corona-related restrictions,” it said.
The two ministries have now agreed on the exact funding conditions. The previous bridging aid III Plus will therefore essentially be continued as bridging aid IV until the end of March. The restart assistance for the solo self-employed will also be continued.
KfW special program
The federal government and the state development bank are also extending the deadline for submitting applications in a KfW special program to April 30, 2022. At the same time, credit limits will be increased. This should help to secure the liquidity of companies.
In the case of bridging aid, the prerequisite for applications is that companies can show a corona-related decline in sales of 30 percent compared to the reference period 2019 – i.e. before the outbreak of the pandemic.
Pressure is growing on politics
However, there is already growing pressure on politicians to improve aid. The federal and state governments decided on Thursday to extend the 2G rule nationwide to retail. Only those who have been vaccinated and those who have recovered will then have access. Shops for daily needs are excluded.
The trade association then demanded that retail companies be given the opportunity to apply for bridging aid even if they had a proven sales loss of 15 percent: “The margins in retail are much lower than in other industries. Companies get into serious difficulties even with losses of less than the previously stipulated 30 percent. “