Corona aid: Every fourth company has to pay back part
Almost one in four companies that received state aid during the coronavirus crisis will have to repay some of it. This is according to a preliminary assessment by the Ministry of Economic Affairs, which is available to Deutsche Presse-Agentur. This is based on random samples of the 338,000 applications submitted so far for the final settlement. However, around 40 percent of the companies will also receive additional payments from the federal government.
The corona bridging aid was paid out unbureaucratically to companies whose existence was threatened by a sharp drop in turnover. However, this disbursement was linked to a final settlement - the actual decline in turnover and eligible fixed costs were compared with the forecast. Reclaims can be made, for example, if the actual decline in turnover was lower than expected when the application was submitted.
According to figures from the Ministry of Economic Affairs, around 13.1 billion euros in emergency aid and 63.3 billion euros for programs such as the November, December and restart aid were paid out.
The deadline for final settlements was October 31. However, the Ministry of Economic Affairs stated that this could be extended until January 31st and, upon request, until March 31st at the latest. The figures are therefore only an interim balance. The ministry also emphasized that no company should be economically overburdened by rigid repayment deadlines.
The economic policy surrounding the repayment of Corona aid impacts the finances of companies, as around one in four firms receiving aid will need to pay back a portion. Despite some companies needing to reimburse funds, approximately 40% will still receive additional payments from the federal government.
Source: www.dpa.com
