Home Government and Politics Small businesses in particular rely on emergency aid

Small businesses in particular rely on emergency aid

WIESBADEN – According to Minister of Economic Affairs Tarek Al-Wazir (Greens), applications for emergency corona aid in Hesse come from all sectors in the country. “It goes across the entire economy,” said the Minister of the German Press Agency in Wiesbaden. “This is the big difference to previous crises. There has never been such a slowdown in Germany’s history.””

By far the most applications for financial support come from micro-businesses, Al-Wazir said. The relevant solo self-employed or small businesses with up to five employees. “This is the bar on the corner, the cosmetic studio, the small hotel – all of these areas have great difficulties.” In the groups with six employees and over eleven employees, on the other hand, there are significantly fewer applications for emergency government aid.

142 million euros have already flowed

Since the start of the aid program last Monday, 72,000 applications have been submitted by Friday afternoon, 14,000 of which have already been approved and money has been paid, the minister reported. The total amount of money paid out is now 142 million euros. However, there are always incorrect applications, for example where the account number is twisted, the liquidity bottleneck is not clearly stated or the scanned copy of the ID card is missing.

Meanwhile, the excitement of the first day has subsided, said Al-Wazir. “At the top, there were 15,000 simultaneous attempts to access the online application page on Monday.” The day after, 3,000 attempts were registered at the same time. Since Wednesday, all applications could have been made immediately or with a maximum of a few minutes waiting.

With the Corona Emergency Aid, a one-time, non-repayable grant can be granted. According to the minister – including federal funding – this amounts to a maximum of 10,000 euros for companies with up to five employees for three months. A maximum of 20,000 euros can flow for three months for up to ten employees and a maximum of 30,000 euros for three months for up to 50 employees.

Al-Wazir also worries about large employers

But he is also worried about the large employers in Hesse, said the Minister of Economic Affairs. The impact of the corona crisis on the large mobility and service sector has hit the economy more than in other federal states. It would take time for companies to overcome the shock after the many restrictions ended. Therefore, it can be expected that the unemployment numbers in the country will increase for now.

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Qamar Munawer
Editor at The Eastern Herald. Studied Bachelor in Architect in Chandigarh, India. Collecting and writing newsworthy stories from around the world. I love to praise nature.