In coordination with the EU Commission, the federal government has launched numerous support measures and state aid in the form of grants, loans, and guarantees with facilitated conditions in a short period of time. For this purpose, the federal government mainly used already existing funding programs. An explanatory article on the support measures and state aid provided by the federal government can be found here.
In addition to the programs of the federal government, all German states have now followed suit and published information on support measures and state aid. The states have set up emergency support programs aimed at companies, self-employed individuals, and members of the independent professions who have incurred financial distress and liquidity bottlenecks that threaten their existence as a result of the corona crisis. The programs provide for loans and guarantees, but also non-repayable grants. The grants are generally designed as de minimis aid. When a company has already received de minimis aid, it must check whether any additional funding would exceed the funding limits.
As with the federal government’s programs, existing funding programs were extended almost without exception or the requirements for granting them were reduced. The funding programs of German states differ considerably in their requirements, so that eligibility for funding must be examined individually for companies with several branches or subsidiaries in different states. In the event of overlapping state and federal programs, careful examination is also necessary to determine which program best suits the company’s situation.