Repayments of Corona aid: Almost every fourth company affected - financial expert analyzes interim balance sheet

Repayments of Corona aid: Almost every fourth company affected - financial expert analyzes interim balance sheet

According to a report by www.volksstimme.de, almost every fourth company that received government Corona aid has to pay back part of it. The final bill from the Ministry of Economic Affairs is based on a sample of 338,000 submitted applications. However, around 40 percent of companies also receive additional payments from the federal government.

The Corona bridging aid was paid out unbureaucratically to companies whose existence was threatened and with high sales declines. However, this included the obligation to submit a final accounting, in which the actual decline in sales and eligible fixed costs were compared with the forecast. Companies may have to pay money back if the actual decline in sales turns out to be less than originally stated.

A total of 13.1 billion euros in emergency aid and 63.3 billion euros were paid out for various programs such as November, December or restart aid. The deadline for final statements was October 31st, but can be extended to March 31st.

These repayments could have a negative impact on the financial sector as companies could face financial distress. Uncertainty about repayments could also affect willingness to invest and delay economic recovery. It is important that entrepreneurs in this situation are offered support and advice to minimize the impact on the market.