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Source: Federal Ministry of Finance The extraordinary economic aid for the month of November 2020 offers further central support for companies, businesses, the self-employed, associations and institutions that are particularly affected by the current Corona restrictions. Further details and conditions of the aid have now been determined. “We stand by those who have to stop their business operations in November due to the Corona measures. I know how big the worries are and that many are waiting for more information on the grant program. They are now fixed. I want the November aid to reach those affected quickly. This crisis is about standing together in solidarity so that we can continue to get through the pandemic comparatively well. “Federal Finance Minister Olaf Scholz” Cohesion and mutual solidarity are the order of the day. In this serious situation, we are not leaving our companies and their employees alone, but are expanding our offers of help for the self-employed, companies and institutions particularly affected by the Corona rules. We have now clarified the conditions for applying for aid. Payments on account should be made as soon as possible, if possible by the end of November 2020. “Federal Minister of Economics Peter Altmaier Closures of affected companies, businesses, self-employed, associations and institutions and indirectly affected companies according to the following conditions: Directly affected companies: All companies (including public ones), businesses, self-employed, clubs and institutions that are based on the decision of the federal and state governments of On October 28, 2020, the federal states had to cease business operations. Hotels count as directly affected companies. Indirectly affected companies: All companies that demonstrably and regularly generate 80 percent of their sales with companies directly affected by the closure measures. Affiliated companies – i.e. companies with several subsidiaries or permanent establishments – are then eligible to apply if more than 80 Percent of total sales across the association are attributable to directly or indirectly affected association companies Up to 75 percent of the sales of the affected affiliated companies are reimbursed. This concerns, for example, a holding company that keeps both restaurants (closed) and retail businesses (still open) – here the emergency aid is paid if the restaurants contribute to more than 80 percent of the turnover of the holding company. What funding is there? per week of closings in the amount of 75 percent of the average weekly turnover in November 2019 granted up to an upper limit of 1 million euros, provided that the company’s existing scope under state aid law allows this (EU small aid regulation). Grants of over 1 million euros are required for the November aid still the notification and approval of the EU Commission. The German government is currently in intensive talks with the European Commission in order to obtain such approval for higher grants. Self-employed persons can use the average weekly turnover in 2019 as a comparison as an alternative to the weekly turnover in November 2019. For those eligible to apply who started their business activity after October 31, 2019, the average weekly turnover in October 2020 or the average weekly turnover since foundation can be selected as the comparison turnover. Crediting of received benefits: Other government benefits that are paid for the funding period November 2020, are taken into account. This applies above all to benefits such as bridging aid or short-time work allowance. Crediting of sales achieved in the month of November: If sales are achieved in November despite the general closure, these will not be taken into account up to 25 percent of the comparable sales. In order to avoid over-funding of more than 100 percent of the comparable sales, a corresponding crediting takes place for sales exceeding this. A special regulation applies to restaurants if they offer food in out-of-home sales. Here the sales reimbursement is limited to 75 percent of sales in the comparable period of 2019 to those sales that are subject to the full VAT rate, i.e. the food consumed in the restaurant. This means that the sales from out-of-home sales – for which the reduced VAT rate applies – are deducted. In return, these out-of-home sales during the closings will be excluded from the crediting of sales in order to favor an expansion of this business. Example: In November 2019, a pizzeria had a turnover of 8,000 euros from consumption in the restaurant and 2,000 euros from out-of-home sales. She therefore receives 6,000 euros in November aid (75 percent of 8,000 euros), i. H. initially slightly less than other industries (75 percent of comparable sales). In return, the pizzeria can achieve significantly more than the generally permitted 2,500 euros (25 percent of 10,000 euros) in sales with delivery services in November 2020 without a reduction in funding. Application: The applications can be submitted in the next few weeks via the nationwide IT Bridging aid platform ( The electronic application must be made by a tax advisor or auditor. The disbursement is to be made via the bridging aid platform by the federal states. Solo self-employed persons who do not apply for funding of more than 5,000 euros are not required to submit an application through a third party. You will be entitled to apply directly under special identification obligations.


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