Saxony stops Corona aid reclaims – entrepreneurs rejoice!

Saxony stops Corona aid reclaims – entrepreneurs rejoice!

The repayments of the Corona economic aid, which was available to numerous companies during the pandemic, are currently the focus of many Saxon entrepreneurs. As MDR reports, the Saxon Ministry of Economic Affairs scheduled a temporary suspension of these repayments at the end of June. This came after intense protests from business, which had caused great uncertainty over repayment.

The controls on aid payments will nevertheless continue because the Free State is obliged to do so by the federal government. However, interested entrepreneurs can hope for better handling. It is therefore possible that you will be exempt from reclaims in individual cases. Their annual net income must be less than 35,000 euros and their assets must not exceed 40,000 euros, although real estate assets are usually not taken into account.

Clarity and plannability for companies

In a recent announcement on July 10, 2023, Saxon Economics Minister Dirk Panter presented further steps in the federal program “Emergency Aid Grant Federal”. The aim is to create clear framework conditions for Saxon entrepreneurs, which should be supported by unbureaucratic and flexible regulations regarding repayment periods, as can be found on the website of the SMWA.

The repayment period is initially six months, during which no interest accrues. After this period, entrepreneurs can choose between several periods: 12 months with a fixed interest rate of 0.5%, 24 months with 1% or 36 months with 1.5%. This flexibility should enable companies to plan better and manage their financial resources in a targeted manner.

But it wasn't just the repayment deadlines that were an issue. Many entrepreneurs are concerned about the reclaims, which have already been completed in 49,257 cases, while 27,586 reclaims are currently being processed. A further 29,000 claims are also expected. The Sächsische Aufbaubank (SAB) has also published a question and answer catalog to provide affected companies with more clarity.

Support for emergencies

Entrepreneurs who do not exceed income or asset limits have the option of being exempt from the reclaim. For example, an amount of 23,000 euros net applies to applicants who are no longer self-employed or pensioners. Child benefit can also increase the limits for those affected, which is particularly important for families.

A total of around 209,000 applications for Corona economic aid were submitted in Saxony, with the federal government providing around 2.9 billion euros and the Free State contributing an additional 752 million euros. This support has helped many companies in difficult times and continues to shape the economic situation in the country.

Entrepreneurs who would like to find out more about the repayment modalities have the opportunity to obtain information via a special SAB hotline. In these uncertain times, it remains important to keep a close eye on financial options and government offers.