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Corona: Federal government wants to help solo self-employed!

There is considerable need for unbureaucratic emergency assistance in favor of microenterprises from all economic sectors as well as solo self-employed persons and members of the liberal professions, who usually do not receive loans and have no collateral or other income.

These people, which include many graphic designers, programmers, web designers and the like in the IT sector, should now be helped unbureaucratically.

Here are the key points of the emergency aid program:

  • Emergency financial assistance (taxable grants) for microenterprises from all sectors of the economy, as well as solo self-employed persons and members of the liberal professions with up to 10 employees.
  • Up to €9,000 one-time payment for 3 months for up to 5 employees (full-time equivalents).
  • Up to €15,000 one-time payment for 3 months for up to 10 employees (full-time equivalents)
  • Provided the landlord reduces the rent by at least 20%, any unused subsidy can also be used for two additional months.

The aim of the program is to provide a grant to secure the economic existence of the applicants and to bridge acute liquidity bottlenecks, including current operating costs such as rents, loans for business premises, leasing rates, etc. (also complementary to the state programs).

Prerequisite: economic difficulties as a result of Corona. Company must not have been in economic difficulty prior to March 2020. Loss occurrence after March 11, 2020.

Application: if possible electronically; existential threat or liquidity bottleneck caused by Corona must be insured.

Technical data: Funds provided by the Federal Government (Section 60); management by BMWi, approval (processing of applications, disbursement and, if necessary, payment). Recovery of funds by state/local governments; legal basis: 2020 federal small grants rule.

Cumulation with other aid related to the Corona pandemic, but also with existing minimis aid, is possible in principle. Any overcompensation must be repaid. This subsidy is taken into account in the tax assessment for income tax or corporation tax in the coming year with an effect on profits.

Program volume: up to €50 billion with maximum utilization of 3 million self-employed and microenterprises over 3+2 months. Unused budget funds are returned to the budget.

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Marian Härtel

Marian Härtel is a lawyer and entrepreneur specializing in copyright law, competition law and IT/IP law, with a focus on games, esports, media and blockchain.


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