With the Corona pandemic, the economic situation has worsened for many companies and self-employed people. Federal and state bridge assistance was created to help bridge financial shortfalls. But how to apply for this assistance? We have prepared all the important information for you.
First, check to see if you are eligible for the bridge grant at all. This is for businesses and self-employed individuals who have experienced revenue losses of at least 30 percent due to pandemic-related restrictions. Furthermore, you must be able to prove your fixed costs, such as rent or leasing rates. Current operating costs, such as salaries or depreciation, are also reimbursed.
To apply for the bridging allowance, you need to fill out and submit the appropriate form. This is available on the website of the German Federal Ministry for Economic Affairs and Energy. It is important that you have all the documents, such as annual financial statements or proof of fixed costs, before you submit the application. The processing time is usually four to six weeks.
Bridging assistance provides important help for businesses affected by the Corona crisis. Take advantage of this opportunity to improve your economic situation. If you have any questions, please do not hesitate to contact us.
The bridging aid – a financial support in the Corona crisis
Bridge assistance is financial support for businesses that have lost revenue due to the corona crisis. It is intended to help secure one’s livelihood and job and is awarded by the German Federal Ministry for Economic Affairs and Energy (BMWi).
To apply for bridging assistance, companies must meet certain requirements. These include a decrease in sales of at least 50 percent in any month between April and August 2020 compared to the same period in the previous year, and an application deadline of 30. September 2020.
How to apply for bridging assistance?
To apply for bridging assistance, companies must prepare a verifiable sales forecast for the subsidy period and submit an application on the BMWi website. It is important to submit all the necessary documents, such as proof of lost sales, the tax certificate and payroll records.
- Create a testable revenue projection for the funding period
- Apply for the bridging assistance on the BMWi website
- Submit all required documentation
It may take some time before the application is processed and the bridging aid is paid out. Therefore, it is important to deal with the issue at an early stage and take all the necessary steps in time to ensure its continuity.
Conditions for bridging assistance
In order to apply for bridging assistance, companies must meet certain conditions. These conditions vary depending on whether the company is a small, medium or large enterprise.
- For example, small businesses must prove that they have experienced a decrease in sales of at least 30 percent compared to the same period last year.
- Medium-sized companies must prove that they have suffered a drop in sales of at least 50 percent.
- Large companies must demonstrate that they have experienced a decline in sales of at least 60 percent.
In addition, all businesses wishing to apply for bridge assistance must be able to demonstrate certain expenditures. These expenses can be, for example, the fixed costs of the business, such as rent, lease or insurance premiums.
It is also important to note that companies applying for financial assistance may receive different maximum amounts of funding depending on the size of the company. Small businesses, for example, can receive up to 150.000 euros, while medium-sized companies can receive up to 200.000 euros can be received.
To make sure you meet the conditions for bridging assistance and have all the necessary documents and proof, you should contact your tax advisor or local business development agency. They can help you apply for bridge assistance and make sure you meet all requirements.
How to successfully obtain bridge assistance
Bridging assistance is designed to help businesses and self-employed individuals who are having difficulty paying their bills during the COVID-19 pandemic. It can be difficult to understand how to successfully obtain bridging assistance, but there are many steps you can take to ensure your application is approved.
First, you need to make sure you have the right information to successfully apply for your bridging assistance. You will need the advance sales tax returns for the last three months and an estimate of expected sales and fixed costs for the next three months. You may also need documentation about your employees and payroll records if you have employees.
- Make sure you collect and have all required documents ready to go.
- Check your documents for completeness and accuracy.
- Fill out the application form carefully and completely.
- Submit your application and wait for a response from the relevant agencies.
By following these steps, you can increase the chances that your application for bridge assistance will be approved. Don’t forget that there is also assistance from experts who can help you with each step of the process.
Applying for bridge assistance
The Corona crisis hit many businesses hard, causing a severe economic crisis. To help you overcome this critical situation, the federal government has provided assistance in the form of grants of up to 90 percent of fixed costs for small and medium-sized businesses. This support is called bridging assistance.
To apply for bridge assistance, businesses must meet the criteria and submit an application. The application can be submitted online and certain supporting documentation is required to verify eligibility as well as the amount of the bridge grant.
- First, applicants must demonstrate a loss of revenue of at least 30 percent due to the Corona pandemic.
- Furthermore, businesses must provide the necessary evidence of the fixed costs for which bridging assistance is being requested.
- There is a maximum amount for the amount of bridge assistance, this varies by the size of the business.
- Applications for bridging assistance are reviewed and processed by the German Federal Office of Economics and Export Control (BAFA).
- After a successful review, the applicant will receive a notice of the bridging assistance granted, which is valid for a period of three months.
If all criteria are met and the applicant has submitted all necessary supporting documentation, the bridge assistance will be paid within approximately ten days. The bridging assistance is to help cover the necessary costs and support the businesses during the difficult time.