Bridging Assistance for Small and Medium-Sized Enterprises During the Corona Pandemic

1 Introduction

The Corona pandemic has brought numerous companies to the brink of ruin. To mitigate economic consequences, immediate assistance was granted, the repayment modalities of which are unclear for many companies. The bridging assistance is intended to provide further liquidity support to small and medium-sized enterprises from June to August 2020 and beyond.

2 Who can apply for the bridging assistance?

Eligible are companies that recorded significant revenue declines in April and May 2020. This also includes solo self-employed individuals and freelancers in their main occupation. The requirements for application are explained in detail.

3 Which costs are eligible for funding?

3.1 Fixed Costs

Unlike immediate assistance, certain operating expenses are funded on a percentage basis. Only certain, pre-defined fixed costs are eligible for funding. Examples are given of what is considered eligible and what is not.

3.2 List of Eligible Costs

A conclusive list of eligible costs is provided, including rents, interest expenses, maintenance expenses, and other business expenses.

4 What is the amount of the funding?

The funding depends on the revenue decline during the funding period and is capped at a maximum amount. The reimbursement rates and maximum reimbursement amounts are explained in detail and illustrated with examples.

5 How does the application process work?

The application process occurs in two phases, involving a tax advisor or auditor. The application must include estimates and forecasts, while the proof of actual values is provided later. The process is described in detail, including the proof obligations.

6 Must the bridging assistance be taxed?

Yes, the bridging assistance is taxable and subject to income tax and possibly trade tax. The deduction of repayable amounts as business expenses is explained.

Legal status: October 2020