Recommendations for the CORONA Crisis
The KfW Bank will provide extra money on short call. The authorization will depend on every single case but it is said, that the access restrictions will be low for entrepreneurs and companies.
For the application of a loan please contact your principal bank. They will contact the KfW Bank and can help you with every question around this extra money. Please prepare a documentation with your income decrease and your fix costs, so the needed liquidity requirements can be arranged.
We do not have any official information about the interest rate, but it might be low, maybe under 1.00 %. Furthermore we do not have any information about the repayment conditions.
Moreover the German government plans a 50 billion Euro package for small entrepreneurs and small sized companies. Further information are still to come.
We will keep you update as soon as possible.
Loans from the city of Düsseldorf
After Information of the Westdeutsche Zeitung the city of Düsseldorf will provide an extra Corona-Fund about 500.000 Euro for those most concerned companies and entrepreneurs. Related requests can be send by E-Mail to the following address:
You can find more Information at the following link, unfortunately this is still in German:
All liquididy help is only for a short term bridging to avoid any insolvency and only the amount of 5.000EUR is granted per Person. All appliticans needs to provide suitable documentation:
- tax number of the tax authority or business registration number
- if you are a Club, the associtaion registration number or club rules
- bank account statements from the following dates 31.12.2018, 31.01.2019 bis 31.03.2019, 31.01.2020 until 28.02.2020 and an actuell bank statement from the application day.
- business assessment 2018 und 2019 (if available)
- declaration in lieu of an oath (filled and signed)
Loans from the country of North Rhine-Westphalia
The government of North Rhine-Westphalia will provide 25 billion Euro for the companies and entrepreneurs during the next month. Further information will come.
Future tax payments can be deferred easily and quickly. Please send a request to your responsible tax authority. Of course we can do this for you as well. Enforcement measures will be renounced until 12/31/2020. The next VAT announcement is due until 04/14/20. We will edit all documents that we have. Otherwise please give us a short information so we can apply for an extension. We wish to refrain from issuing an estimated VAT announcement. The tax authority will classify this as tax fraud. The next income and corporate tax prepayment will be due 06/10/20 and for trade tax at 05/15/20. If you wish to reduce the prepayments to 0.00 EUR, contact your responsible tax authority or give us a short information, so that we can get in contact with the tax office.
Illness and quarantine
If your company has less than 30 employees, the apportionment No.1 will occur. This means that up to 70 % of the payroll cost will be reimbursed by the health insurance. Please note that you need to provide the certification of incapacity to the health insurance. At the moment the doctor can issuing a certification of incapacity for 14 days by telephone request. This will also apply to the case, if quarantine is ordered by the medical officer for an employee.
Please beware that the reimbursement is done afterwards. The employer needs to pre-finance the salary cost. All non-wage labor costs remain at 100 % and are not reimbursed. If quarantine is issuing to an employer and the company is closed, the employer has to pay all payroll cost for 6 further weeks. 70 % of the money will be reimbursed afterwards from the relevant health department. All non-wage labor costs remain at 100 % and are not reimbursed. The reimbursement is done independent to the number of employees. If the company is still closed after 6 weeks the payroll cost were taken over from the government, in accordance to “§ 56 Infektionsschutzgesetz”. Payment is done from the responsible government and is restricted to 70 % of the gross income (90 % of the net income). All non-wage labor costs will be dropped for the employer and will be taken over by the responsible government as well.
This also applies for entrepreneurs. They can apply for a refund by the state based on their average income.
Short time work
If companies need to reduce their work time due to inevitable events or other economic crisis, the “Bundesagentur für Arbeit” can take over the salary payment for a period of time. Each employer can apply for short time work at the “Bundesagentur für Arbeit”.
Please note that all remaining holidays’ form 2019 must be used in a first step as well as overtime hours. Furthermore, the complete company or a branch of the company must be affected by the short time work. The application is done at the “Bundesagentur für Arbeit”. Unfortunately there is no English application form until now available. Due to the Corona Crisis the government decided facilitated conditions for the short time work. The application is also available for temporary workers. The entitlement is given, if 10 % of the employees will have a loss of more than 10 % of their salary. Furthermore all non-wage labor costs will reimbursed by the “Bundesagentur für Arbeit”. This rule will be valid until 12/31/2020
According to information of the “Bundesamtes für Justiz” the short period of 3 weeks for the insolvency application is suspended until the 09/30/2020.