Corona aid is threatened to be reclaimed: the deadline for Bavarian companies is expiring

Corona aid is threatened to be reclaimed: the deadline for Bavarian companies is expiring

According to a report by www.zeit.de, many Bavarian companies are threatened with the complete repayment of Corona aid from the federal government. The IHK Munich and Upper Bavaria announced that more than 12,000 applications for the final settlement or an extension of the deadline were missing. If these companies do not submit anything by January 31st, they will have to repay 100 percent of the funding amount including interest according to the federal funding guidelines.

A total of almost 12 billion euros was paid out as part of the bridging aid, the November and December aid, the restart aid as well as the Bavarian hardship and October aid. The deadline now applies to all applications for bridging aid I to IV as well as some of the applications for December and November aid. The IHK in Munich expects final accounts for 283,000 applications, of which 127,000 are already available and 156,000 still have to be submitted, with 12,000 companies having not applied for an extension of the deadline.

As a financial expert, I estimate that the potential impact of this situation on the market and the financial industry could be significant. If the affected companies do not meet the deadline and are forced to repay the aid funds, this could lead to liquidity problems and financial bottlenecks. This, in turn, could increase the risks of insolvency and have a negative impact on the economy as a whole. It is therefore important that affected companies act urgently to submit the necessary documents and, if necessary, request an extension of the deadline to avoid repayment of the aid funds.