What kind of financial help is Germany providing for businesses during lockdown?
The self-proclaimed “Lockdown Light” during the month of November in an attempt to curb the rise of Covid cases has brought a halt to a large number of businesses throughout Germany. In an attempt to compensate for the economic damage, Merkel and company have designed a relief package depending on the nature of your business. It can be overwhelming to sift through the qualifications and criteria – read on for a simple overview of what is available for you and your business, with a focus on companies based in Berlin.
If you are a small or medium-sized business
The 10 billion euro program allows for those directly affected by the lockdown to claim up to 75% of their November 2019 turnover. Those remaining open but can prove that 80% of their revenues come from the businesses that are shut down will also qualify for financial aid. There is a cap of 1 million euros to be claimed per business.
If you are a start-up/venture capital firm (in Berlin!)
Those based out of Berlin since March 11th, 2020 or earlier may qualify for significant funding from the IBB. If the company has potential for high growth in the technological or creative scene then the different loan options to be used towards investment or running costs could be of a huge help. The help could come in the form of anywhere from 200,000 – 800,000 euros. Find out more on the website.
If you are self-employed
Self-employed individuals are subject to the same compensation as those of small and medium sized firms. However, if there was little turnover in November 2019, the self-employed are given the option of using their average weekly turnover in 2019 instead as a comparison mark.