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The Federal Cabinet decided last week on further "bridging aid for small and medium-sized businesses that have had to suspend their operations wholly or substantially as a result of the coronavirus crisis".
Key Points
The programme is designed as a follow-on to the emergency aid scheme and provides grants towards certain fixed costs for June to August 2020.
Eligibility Conditions
- Total turnover in April and May 2020 must have fallen by at least 60% compared with the corresponding period in 2019
- The business must not have been in difficulty as at 31 December 2019 within the meaning of the EU definition
Eligible Costs
- Rents and lease payments for buildings and premises
- Other rental costs
- Interest charges on loans and credit facilities
- Finance cost element of leasing instalments
- Expenditure on maintenance and upkeep
- Electricity, water, heating, cleaning and hygiene measures
- Property taxes
- Operational licence fees
- Insurance and subscriptions
- Costs of tax advisers or auditors
- Costs relating to apprentices
- Personnel costs (flat rate of 10% of fixed costs)
Subsidy Rates by Turnover Decline
- Over 70%: 80% reimbursement
- 50-70%: 50% reimbursement
- 40-50%: 40% reimbursement
Maximum Grant (3 Months)
- Up to 5 employees: 9,000 €
- Up to 10 employees: 15,000 €
- Otherwise: 150,000 €
Further Notes
- Application deadline: 31 August 2020
- The grant is taxable
- Emergency aid is offset against bridging aid
- Over-compensation is not possible
Procedure
Bridging aid can only be applied for through tax advisers and auditors. The procedure takes place in two stages: the first stage involves an estimate of the turnover decline and the fixed costs; the second stage involves the final calculation and confirmation. Where overpayments have been made, any excess must be repaid.