Federal Finance Minister Olaf Scholz (SPD) and Federal Economy Minister Peter Altmaier (CDU) have agreed on the details of the emergency economic aid for November 2020. The Federal Ministry of Economy announced it on Thursday evening. This means that nothing stands in the way of returning 75 percent of revenues to companies directly affected by partial locking (such as restaurants, hotels, fitness studios).
The value from November 2019 is used as a reference value. The self-employed can also use the average weekly turnover for 2019; Companies under one year, average weekly sales for the last October. “I want the aid to hit the victims quickly,” Scholz said. Altmaier added: “Advances should be made by the end of November 2020 if possible.”
Sales outside the house do not count
So far, the question of how to deal with sales that are generated despite closures, such as sales away from home in restaurants, has not been answered. The Minister has now announced that the refund will be limited to sales at full VAT rate. The sale of “To Go” is therefore excluded as they are subject to a reduced VAT rate.
This means: On the one hand, restaurateurs have to deduct off-home sales from November 2019 when determining reference sales. On the other hand, sales of “To Go” in the current month are not included in the refund. The goal is to “support the expansion of this business,” say ministries. In addition, sales in excess of 25 percent of sales in the previous year should be offset by aid.
According to the contribution, companies indirectly affected by the lock-in may also hope to be reimbursed. However, they must prove that 80 percent of their sales depend directly on cooperation with companies, which in turn are directly affected by the ordered closures. For example, this rule could apply to laundries, which run most of their business in restaurants and hotels. The application must be requested on the website ueberbrueckungshilfe-unternehmen.de. It is still unclear when this will be possible.
The German Association of Hotels and Restaurants (Dehoga) welcomed the details of the federal government’s crown co-operation for industry in the locked month of November. “This is good and encouraging news for our emergencies,” Dehoga President Guido Zöllick said in Berlin on Thursday.
Corona aid has been announced for some time
The federal government has already announced that the companies affected by the corona measures they decided last week will quickly provide financial support. “It is ensured that we can provide support as soon as possible,” said Berlin Mayor Michael Müller (SPD) after talks between Chancellor Angela Merkel (CDU) and the Prime Ministers.
“We will build on existing systems, application procedures and payment schemes,” he continued. It will certainly take a few days, but there will be no new bureaucracy.
The total financial assistance should amount to up to ten billion euros. This should allow small companies to refund up to 75 percent of the revenue they generated in the same month last year, in November 2019. For larger companies, it was possible to pay up to 70 percent of the previous year’s revenue. According to reports, companies with up to 50 employees are considered small. The amount of funding for larger companies should be calculated according to the requirements of the State Aid Act.
[Was Peter Altmaier und Olaf Scholz am vergangenen Donnerstag zu neuen Coronahilfen gesagt haben, finden Sie hier.]
Companies that have to close due to measures decided on Monday – and which is at least one year old – can apply; after all, they must be able to refer to the value from the previous year.
Söder thinks this is a “uniquely good offer”
Söder praised the help after the meeting as a “uniquely good offer”. In most cases, sales in November last year are even higher than in October, he speculated. Moreover, it is not as if “theaters are currently overcrowded.”
[Konkrete Nachrichten aus Ihrem Berliner Kiez: Hier gibt es die 12 Tagesspiegel-Newsletter für jeden der 12 Berliner Bezirke – kostenlos: leute.tagesspiegel.de].
No decision of the Bundestag is required for the funds. Much more should be taken from other aid programs already adopted and already approved. From a political point of view, they have already been decided, according to BMW, and this step is to be taken formally in the next few days.