Financial support for the self-employed, freelancers and small businesses in times of corona
The effects of the Corona pandemic have not only affected the health of many people, but also seriously changed the economy. Especially for the self-employed, freelancers and small businesses, the crisis can threaten their existence, as they often do not have the same financial reserves as large companies.
To cushion the economic impact on these groups of people, the federal government and the states have launched various assistance measures. These range from direct financial aid and government loans to tax relief and subsidies for rents and operating costs.
But despite these measures, applying for and implementing assistance remains a challenge for many affected individuals. There are a variety of programs and requirements that must be met in order to receive financial assistance. It is therefore important to find out exactly what the various options are and, if necessary, to seek advice from experts in order to find the most suitable solution for your own business.
In the following, we will provide an overview of the various aid measures and their conditions. Because especially in times like these, it is important that we stand in solidarity with each other and support each other to overcome the crisis together.
Emergency assistance for the self-employed, freelancers and small businesses in times of Corona
In the crisis caused by the Corona pandemic, many self-employed, freelancers and small businesses face the challenge of securing their economic livelihoods. The federal government has therefore launched emergency aid to support these groups.
These are grants that can be applied for quickly and without complications. Emergency assistance is intended to help ensure that ongoing operating costs such as rents, loans and salaries can continue to be paid.
An important aspect when applying for emergency aid is to check one’s own liquidity. It is important to realistically assess how long operating costs will need to be covered and what financial reserves are available. In this way, emergency aid can be used wisely and help to ensure the long-term survival of the business.
- Important: Emergency aid is limited in time and should only be used in justified cases.
- Tip: Find out about the requirements and application options for emergency aid at an early stage and, if necessary, seek advice from experts.
Overall, emergency aid is an important instrument for providing economic support to the self-employed, freelancers and small businesses in times of corona.
Disclaimer: This article does not contain legally binding information and is intended as guidance only. Please seek information from official agencies and/or expert advice as needed.
Financial assistance for the self-employed, freelancers and small businesses in times of crisis
The Corona pandemic has hit many small businesses hard, especially self-employed and freelancers who often don’t have reserves to get through extended periods of economic downtime. To support them, governments, banks and other financial institutions offer a range of economic assistance.
These aids include interest-free loans, deferrals of taxes and social security contributions, and grants that do not have to be repaid. This support can help to keep operations running and preserve jobs. It is important that those who need help inform themselves quickly and make appropriate applications before it is too late.
- One option is the KfW fast loan, which enables small and medium-sized enterprises to obtain liquidity at short notice.
- Banks also offer their own loan programs tailored specifically for the self-employed and freelancers.
- Additionally, businesses can apply for government grants to help cover their fixed costs such as rent and salaries.
It is important to note, however, that loans and other financial assistance are not a permanent solution and that there may also be permanent changes in operations to adapt to the changing economic situation. Businesses should therefore look hard at other ways to be successful in the long term, such as online sales opportunities or operational efficiencies.
Short-time allowance: Support for the self-employed, freelancers and small businesses
The Corona pandemic is having a negative impact on many businesses and self-employed individuals. To mitigate economic consequences, the federal government has taken several measures. One of them is the short-time allowance. In the event of work being lost due to the pandemic, employees can apply for short-time allowance and thus receive financial assistance. But what about self-employed and freelancers??
Support is also available for the self-employed and freelancers in the form of short-time allowances. However, they must meet certain requirements for this. For example, they must employ at least one employee subject to social security contributions and that employee must be affected by work loss. In addition, they must have employed their staff since at least 1. March 2020 employ.
But there are also other economic aids for the self-employed, freelancers and small businesses apart from the short-time allowance. KfW Bank, for example, offers various loans to help companies with liquidity bottlenecks. Grants are also available, such as the federal government bridge loan. This is aimed specifically at smaller companies with up to ten employees.
It is important for the self-employed and freelancers to find out about these various assistance offers and check which type of support is suitable for them. The application and conditions of the assistance may vary from region to region and it is advisable to contact the relevant authorities at an early stage.
Tax measures to support the self-employed and small businesses during the Corona crisis
In times of Corona, many self-employed and small businesses are financially strained. To mitigate the resulting economic challenges, various tax relief measures have been introduced for affected entrepreneurs. These include:
- Deferral of tax payments
- Deferral of tax liabilities
- Reduction of advance payments
- Offsetting losses against profits from previous years
In addition to these measures, the government has decided to extend the depreciation options for goods used for business purposes. Companies can now write off short-term investments more quickly and thus obtain tax relief.
Tax assistance during the Corona crisis is an important support for the self-employed, freelancers and small businesses. As the financial situation is highly dependent on further pandemic developments, it is important that the government closely monitors the economic situation and, if necessary, takes further measures to support affected companies and industries.
Support for cultural institutions
The Covid 19 pandemic is having a massive impact on the economy, including the self-employed, freelancers and small businesses. Cultural institutions in particular are affected by closures and suffer from a lack of revenue. Economic assistance is needed to maintain a diverse cultural scene after the crisis.
The federal government has launched various funding programs to support cultural institutions. For example, grants can be applied for to cover fixed costs such as rent or salaries. Special programs have also been set up for artists and cultural workers to implement creative projects. In addition, many states and municipalities cooperate with cultural institutions to provide financial support.
Nevertheless, many cultural institutions continue to rely on donations and private funding. Here, citizens can also become active and support their local cultural institution. In addition to monetary donations, donations in kind or time can also provide valuable support. A strong cultural scene is important for the identity of a society and should therefore not be neglected even in times of Corona.
- Fixed cost grants: Applications for grants for rent, salaries, etc.
- Artist Programs: Supporting creative projects by artists and cultural professionals.
- Private sponsorships: Donations of money or goods from citizens to support cultural institutions.
Hopefully, despite the crisis, the cultural scene will remain intact and continue to play an important role in our society.