WINHELLER supports companies and nonprofit organizations in the tax adviser-bound application process
It has recently become possible to apply for a corona bridging grant in Germany. To avoid abuse, all applications must be made through a tax advisor. Companies and nonprofit organizations (NPOs) cannot therefore submit an application for bridging grant on their own. Our tax advisors will be happy to assist you from the application to the approval of the bridging grant at a fair flat rate.
What do you need for the application for bridging grant?
The following documents are required to successfully submit an application:
- Sales figures January to June 2019
- Sales figures January to June 2020
- Advance turnover tax return (Protocols 2019, 2020)
- Ideally, BWA (business management analysis) and other documents on fixed costs (contracts)
Who can apply for a bridging grant in Germany?
Small and medium-sized enterprises as well as organizations from all sectors of the economy are eligible to apply for bridging assistance in Germany provided that they do not qualify for the Economic Stabilization Fund. In addition
- self-employed members of the liberal professions in their main occupation and
- nonprofit enterprises and organizations that are economically active on the market on a long-term basis,
are also eligible to apply.
Conditions to qualify for a bridging grant
The prerequisite is a complete or substantial disruption of business activities as a result of the corona pandemic. This is assumed ex officio if sales in the months of April and May 2020 combined have fallen by at least 60 percent compared to April and May 2019.
For companies founded after April 2019, the months of November and December 2019 should be used for comparison instead of April and May 2019. The applicant must not have been in difficulties on December 31, 2019 as defined by the EU.
Is it necessary to repay the bridging grant?
The bridging grant is a grant program with a duration of three months and therefore does not have to be repaid – it is therefore a gift from the state. The grant covers the months of June, July and August 2020 and provides a non-repayable grant during this period.
How much bridging grant is there from the state?
The non-repayable grant amounts to
- 80 percent of fixed costs in the event of a more than 70 percent drop in sales
- 50 percent of fixed costs in the event of a sales slump of between 50 and 70 percent
- 40 percent of fixed costs in the event of a sales slump of between 40 and 50 percent
If the turnover in a funding month is at least 60 percent of the turnover of the previous year’s month, the bridging grant is not applicable for the respective funding month.
What is the maximum amount of the bridging grant?
- The maximum grant is EUR 150,000 for three months.
- For companies with up to five employees, the maximum reimbursement amount is EUR 9,000 for three months.
- For companies with up to ten employees, the maximum reimbursement amount is EUR 15,000 for three months.
- In justified exceptional cases – small companies with very high fixed costs – these maximum amounts can be exceeded.
Which fixed costs are eligible?
Fixed costs from the following areas are eligible for funding:
- rents and leases,
- additional rental costs,
- interest expense on loans and borrowings,
- financing cost component of leasing instalments,
- expenditure on necessary servicing, maintenance or storage of fixed assets and leased assets, including IT,
- expenditure on electricity, water, heating, cleaning and hygiene measures,
- property taxes,
- operating license fees,
- insurance, subscriptions and other fixed expenses,
- costs for the tax consultant, auditor or sworn auditor incurred in connection with the application for the corona bridging grant,
- costs for trainees,
- personnel expenses,
- commissions or margins paid or not paid to tour operators for certain package holidays.
The entrepreneur’s salary is not eligible and therefore cannot be subsidized.
We shall be pleased to apply for bridging grants on your behalf
Would you also like to benefit from the state bridging grant? We would be happy to submit your application and provide the necessary tax advisor confirmation – and all this at a fair all-inclusive price. Please contact us directly at firstname.lastname@example.org.