Bridging Assistance Phase 2 for Small and Medium-Sized Enterprises: What You Should Know

1. Introduction

The bridging assistance for the funding period June to August 2020 was a central component of the Corona stimulus package adopted in June 2020. Now the funding is extended in a second phase to the months of September to December 2020. This article explains the key points of Bridging Assistance Phase 2.

2. Who can apply for Bridging Assistance Phase 2?

Eligible are small and medium-sized enterprises as well as solo self-employed individuals and freelancers who experienced revenue declines in two consecutive months from April to August 2020 due to the Corona pandemic. The exact requirements for the application and eligibility are explained in detail here.

3. Which costs are eligible for funding?

3.1 Fixed Costs

Companies can receive a percentage grant for certain fixed costs depending on the revenue decline. It is explained in detail which costs are eligible for funding and how the application process for the various aid schemes works.

3.2 List of Eligible Costs

A comprehensive list of eligible costs is presented, including rents and leases, interest expenses, maintenance expenses, insurance, personnel expenses, and more.

4. How much is the funding?

It is explained how the reimbursement rate is calculated based on the revenue decline during the funding period and what the maximum amount per company and month is. Examples are provided to illustrate the calculation.

5. What applies to affiliated companies?

Special regulations apply to affiliated companies regarding the application process and funding amount, as well as the consideration of fixed costs.

6. How does the application process work?

The application process is explained in detail, from the required documents to the deadlines for application and changes.

7. Does the bridging assistance need to be taxed?

It is explained which tax aspects need to be considered for the bridging assistance, including income, corporate, and trade tax.

8. What can you do?

Tips are provided to expedite the application process, including the calculation of revenues and fixed costs.

9. November/December Assistance

The special support for companies directly and indirectly affected by the partial lockdown in November and December 2020 is explained, including the companies eligible to apply and the application process.