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Passed the need? Only a third paid out

Solo self-employed people and small companies can call up 50 billion euros in the Corona crisis, but so far only just under a third has been paid. Is the emergency aid raised incorrectly?

So far, the federal government has paid out less than a third of the immediate Corona aid available to companies. From the program launched in March, 13.6 billion euros have so far flowed out, according to a response from the Federal Ministry of Finance to a request from the Bundestag member Fabio De Masi of the Left Party.

The funding pot for self-employed people, small businesses, freelancers and farmers with economic difficulties due to the corona pandemic is filled with 50 billion euros. A total of around 2.2 million applications for emergency aid had been submitted by September 30, of which around 346,500 or almost 16 percent were rejected. In addition, 1.13 billion euros were approved in bridging aid for small and medium-sized enterprises.

Left: Corona emergency aid also for livelihood

“The emergency aid goes past the small companies,” said De Masi of the interim results. “Less than 30 percent of the funds have been called, although the hard Corona winter is just around the corner for many self-employed and small companies.” This reveals that the programs were drawn up incorrectly.

Aid for livelihoods is also needed, as this cannot be precisely separated from the operating costs, for example for the self-employed. “Aid for small and medium-sized companies is money well invested because you can no longer get these livelihoods high after the crisis and a wave of bankruptcies,” said the member of the Bundestag.

Instead, the requirements for the rescue of large corporations that paid dividends despite state aid or did business in tax havens should have been stricter.

Over 4,000 proceedings for fraud with Corona aid

According to the ministry, the repayments of excessively high emergency aid grants have so far totaled around 305 million euros. In just under 25,000 cases, the approval authorities of the federal states have canceled or demanded repayment, which so far led to repayments of around 150 million euros, according to the ministry.

According to the information, eleven federal states have reported a total of around 4,100 investigations into fraud in connection with the emergency aid. “The federal government has no separate information on the number of ongoing and completed proceedings,” it said.

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