Almost every fourth company has to repay Corona aid: What financial experts need to know now

Almost every fourth company has to repay Corona aid: What financial experts need to know now

According to a report by www.t-online.de, almost 25% of companies that took advantage of government Corona aid have to make repayments. This emerges from a preliminary balance sheet from the Ministry of Economic Affairs, which is based on a sample of 338,000 applications. However, around 40% of companies also receive additional payments from the federal government.

The Corona bridging aid was paid out quickly and unbureaucratically to companies whose existence was threatened and with large declines in sales. However, the payment was linked to a final statement in which the actual decline in sales and eligible fixed costs were compared with the original forecast. Reclaims are possible, for example, if the actual decline in sales was less than expected when the application was submitted.

According to the Ministry of Economic Affairs, a total of 13.1 billion euros in emergency aid and 63.3 billion euros were paid out for various aid programs such as November, December or restart aid.

The deadline for the final statements was October 31st, but can be extended upon request to January 31st and, in an emergency, to March 31st. The ministry also emphasizes that no company should be overwhelmed by rigid repayment deadlines.

As a financial expert, it is important to mention that repayments of government aid can have an impact on the liquidity of companies. Depending on the level of repayments, companies may need to realign their financial plans and use capital reserves. This could lead to restrictions on investment and growth. In addition, uncertainty about repayments and possible extensions of repayment periods can affect companies' financial planning.

It will be important to keep an eye on the development of these repayments and any additional payments in order to monitor the impact on the market and the financial sector.