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Aid package for foreigners in Germany following the Corona pandemic

When the German Parliament approved the aid package for foreigners in Germany for the people affected by the Corona pandemic, this aid was not intended for Germans only. Rather, this aid includes every resident in Germany who works in different sectors, whether the work is individual, such as artists and painters, or it is affiliated with a company, restaurant, cafe, and so on.

However, these financial sums generated from the assistance must be spent according to organized bills or bank transfers, in order to show them later and to ensure that they were spent on work.

 The total budget of the fund amounts to 600 billion euros to enhance the capital and guarantees for companies.

In the first stage, the applicant was awarded an amount not to exceed 14,000 euros; 5,000 from the state and 9,000 from the German Republic. Each amount paid has conditions for obtaining it and ways to spend it.

Who can apply for aid from the state, which is worth 5,000 euros?

  • Entrepreneurs and small businesses and organizations that employ up to 5 workers.
  • Industrial facilities.
  • For self-employed business, the work must have actually started while submitting the application. 

Read more information on German Laws and legislation here: Legal News and Guides – Germany

Where should this aid be spent?

There is a peculiarity of some facilities in the use of aid. Where the amounts coming from the state can be spent as follows:

  • Rent with water and electricity services.
  • Amounts paid to insurance companies related to the facility, company or self-employment.
  • Premiums arising from loans granted to the company, enterprise, or self-employment as long as the person or enterprise does not receive a payment deadline from the loan owner.
  • Telephone and internet bills used for work.
  • Transportation. 
  • Maintenance costs and repairs.
  • Advertising and marketing costs. 
  • Other sporadic things. 
  • Salaries:
    • As for self-employment, the employer or businessman can apply for aid with the value of his wages for a maximum of six months.
    • For small companies with only five workers at most, you can request aid with a salary of 3 months at most.
  • Of course, aid can be used to cover living expenses as well.

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Who can apply for aid from the German federal state?

  • Entrepreneurs and small businesses and organizations that employ up to 10 workers. 
  • Industrial facilities.
  • For self-employed business, the work must have actually started while submitting the application.

The amount for self-employed workers in which the number of workers does not exceed 5 workers is 9,000 euros. While the amount for small companies and the number of workers up to 10 is estimated at 15,000 euros.

How is the number of workers calculated and their benefits?

The day of entitlement begins on 11,03,2020 and the number of workers is calculated as follows:

  • A worker who works 20 hours a week is considered half a worker.
  • A worker who works up to 30 hours per week is three quarters of a worker. 
  • A worker who works more than 30 hours per week is a full worker even if his work is in the context of vocational training. 
  • A worker who works for 450 euros a month is one third of a worker. 

Of course, providing false statements to obtain this aid is a fraud on the law , so every person who has received this amount and knows that he does not fully or partially deserve to return the part or all, in order not to be prosecuted.

After the amount reaches the applicant, he also receives an e-mail explaining these matters to him and notifying him of the legal consequences.

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Things to pay attention to:

  • The application is submitted by persons of legal capacity (self-employment or companies).
  • A person whose workplace has more than one branch can only submit one application.
  • The main business or company must be based in Germany .
  • The need for this aid must be caused by the Corona pandemic, not for reasons that preceded it.
  • If it becomes apparent that the crisis the person has gone through is not due to corona, they will be required to return the sum. 

Of course, according to the information, there is no doubt that checking millions of requests is a difficult thing to do in a short period of time, and it is possible that some samples of aid package for foreigners in Germany requests will be examined.

Prepared by: Jalal Muhammad Amin. Syrian lawyer and legal advisor based in Germany