English information on Corona Help for freelancers and businesses

English information on

Corona Help for freelancers

and businesses

DON'T PANIC - ACT NOW.

Right now, we think that it is important for entrepreneurs

and freelancers to be active. If you act quickly

and carefully, you have a better chance of going

through the crisis in a stable manner and perhaps,

emerge even stronger from it.

As a non-German speaker, we appreciate how finding

the right information to support your needs might

be difficult, so to get you started, we would like to

share our knowledge with you.

Here, you will find up-to-date information on legal

bills, applications for emergency aid, loans, but also

information on what we have implemented for our

own business beyond state aid.

What can freelancers and start-ups do to stay afloat during the Corona crisis?

State Financial Aid

Own Entrepreneurial Measures

Who are we

Page 3 - 6 Page 6 - 11 Page 12 - 13

pinc-services.de/corona 1

WE ARE HERE

FOR YOU

We are PINC Services, a young service company

in the field of accounting and process optimization.

Our sister organization PINC Solutions, is a well-established

and successful marketing agency that has been

active on the market for a long time.

Like many other businesses, we are also suffering from a

sharp drop in sales. In uncertain times, we are lucky to have a

great team, and despite the circumstances, we choose to push through

the barrier and tackle what lies ahead in a proactive and solution-orientated manner. In

the spirit of standing together, we would like to pass on our positive energy and share information that

would be most useful to you. And to make life even easier, we have compiled all you need in one place so

you don't have to search across different sources to find what you need. Read more about us further below.

HOW DO YOU KNOW ALL THIS

AND IS IT REALLY FREE?

Numbers are our core business. We know when a company gets into trouble and how to counteract it. We

are in day-to-day business exchanges with banks, tax consultants and the authorities - so we speak their language

and have already taken all possible steps for our own companies and our customers.

Yes, we collect all information on this page completely free of charge and are happy to share it with you! This

page is from us to you, because together we are strong.

Should you require additional support, PINC Services can offer further advice as well as creating a bespoke

action plan specific for your needs. If you are interested, you can switch to our PINC Services page here. –

which is in German only though (for now). We do speak English so feel free to give us a call.


STATE FINANCIAL AID

The federal governments, state governments and authorities currently offer a variety of rescue packages.

However, the amount of information is difficult to follow because new measures are being decided or

supplemented every day. Here you will find all the information about the state financial aid and facilities

that may be relevant for your company.

I. Short-time work

The spread of the corona virus poses major challenges for the economy and the labor market. In order to

support employees and, above all, you as an entrepreneur, the legal basis for easier access to short-time

benefits has been created in an urgent procedure. The regulations will take effect as of March 1, 2020.

> Short-time work allowance is possible for every company, including temporary workers.

> If at least 10 percent of the employees are affected by loss of work, your company can apply to the Employment

Agency for short-time work for you. Otherwise at least a third of the employees must be affected.

> Short-time work allowance amounts to 60 percent of the missing net wage - 67 percent for parents.

> The Federal Employment Agency fully reimburses social security contributions for short-time work.

> Employees do not have to build up minus hours before short-time allowance can be paid.

More information in German can be found here: https://www.bmas.de/SharedDocs/Downloads/DE/

PDF-Meldungen/2020/corona-faqs-en.pdf?__blob=publicationFile&v=9


II. Emergency aid from the federal government and Bavaria

For freelancers & self-employed, cultural and creative freelancers, companies and non-profits your top priority

should now be to stay solvent! Immediate help is available for freelancers and companies in the commercial

and liberal professions to cover short-term liquidity requirements. These can be used quickly and

unbureaucratically and do not have to be repaid if proven to be necessary. If it is subsequently determined

that the applicant had sufficient private funds to bridge the liquidity, the emergency aid must be repaid.

1. FEDERAL HELP - IMMEDIATE MEASURE FOR SELF-EMPLOYED PERSONS AND SMALL BUSINESSES

There is considerable need for unbureaucratic emergency aid in favor of micro-enterprises from all economic

sectors as well as self-employed and members of the liberal professions, who generally do not receive any

loans and have no collateral or additional income.

The federal government's immediate measure is aimed at bridging liquidity for 3 to 5 months:

> Up to 9.000€ one-time payment for 3 months with up to 5 employees (full-time equivalents)

> Up to 15.000€ one-time payment for 3 months with up to 10 employees (full-time equivalents)

Source (in German): 30.03.2020 - https://www.bmwi.de/Redaktion/DE/Dossier/coronavirus.html#id1694894

There is the uniform federal program "Corona Emergency Aid for Small Enterprises and Solo Self-Employed",

for which the federal states have taken over the application approval and payment. With this emergency aid

program, the federal government covers around 90% of the approximately 3 million small businesses and

solo self-employed.

The additional emergency aid programs of some federal states have been linked to the federal program,

which means that the federal states take care of the implementation and payment of federal funds. You can

find facts (in English) about the federal emergency aid program here:

https://www.thelocal.de/20200330/financial-help-in-the-corona-crisis-who-gets-what

In addition, numerous federal states have launched their own emergency aid programs. The federal states

have the option of addressing specific regions with greater needs, which may arise due to higher commercial

rents in large cities, for example, through their own aid programs. A combination of the federal emergency

aid program with other public aid, for example with a state program, is permitted provided that this does not

result in overcompensation. As an applicant who has already received emergency aid from a state program,

you can receive additional emergency aid from the federal program up to the maximum limit of the grant if

you meet the requirements for emergency aid according to the federal program and the maximum funding

amount has not been reached.


It is important to be aware that if you have an existing liquidity issue since December 31, 2019, the application

must be submitted to the responsible contact person in the federal states by May 31, 2020 at the latest.

Source (in German): 30.03.2020, https://www.bmwi.de/Redaktion/DE/FAQ/Coronavirus/faq-

coronavirus?cms_artId=1721238

2. BAVARIA

The Bavarian state government was the first federal state to set up an emergency aid program aimed at

businesses and freelancers who, as a result of the Corona crisis, were faced with an existential economic

imbalance and liquidity shortages.

Anyone who has already applied for emergency aid in Bavaria can now benefit from the higher federal conditions

and make a new application.

You can only submit this new application online - here is the form:

Source (in German): 30.03.2020 - https://www.stmwi.bayern.de/soforthilfe-corona/

Update – April 6th, 2020:

It has now been decided that you do not have to exhaust your private funds in Bavaria before you can apply

for the immediate measures.

Source (in German): https://www.vgsd.de/erfahrungs Austausch-corona-hilfe-fuer-selbststaendige-in-bayern/

Update – April 20, 2020:

From April 20th on, farms with primary production and economically active gGmbHs (e.g. educational institutions,

club cafes, youth centers, care facilities, women‘s shelters) with more than 10 employees can now

receive emergency aid.

Source (in German): 20.04.2020, https://www.stmwi.bayern.de/soforthilfe-corona/

III. Easier Loans

As part of the approved corporate shield, existing liquidity support programs will be expanded to make it easier

for you and your company to access cheap credit. In this way, liquidity-enhancing loans from your house

bank can be mobilized to a considerable extent. To this end, the established instruments of private credit

supply are being expanded and made available to more companies. The risk assumption and the extension of

the liability exemption are used up to 90%. According to the Ministry of Economic Affairs, loan applications

should be processed quickly. Unfortunately, what “fast” means and how the house banks want to do this is

not yet clear.


1. KFW = KREDITANSTALT FÜR WIEDERAUFBAU (RECONSTRUCTION CREDIT INSTITUTE)

Companies on the market for more than 5 years

> KfW corporate loan

> KfW loan for growth

Companies in the market for less than 5 years

> ERP start-up loan

Universal special programs of KfW with expansion of the liability risk in progress

Equipment components in the promotional loans of the federal states for founders and SMEs

Source (in German): https://www.bmwi.de/Redaktion/DE/Dossier/coronavirus.html

> Export Credit guarantee

2. YOUR HOUSE BANK

Banks are developing own supporting loan programs. Please be aware of the commercial interest of these

kinds of loans.

3. FEDERAL GUARANTEE BANKS

If your bank is unable to provide you with a loan to overcome the short-term liquidity need, the federal guarantee

banks can support you by taking over the risk up to 80%.

For more information, take a look at the flyer on guarantee banks and SME-oriented investment companies:

Source (in English) https://www.vdb-info.de/media/file/4302.flyer_guarantee_banks_and_SME-oriented_investment_companies.pdf

4. START-UP-SUPPORT PROGRAM

Start-ups receive 2 Billion Euros: tailor-made support during the corona crisis. Support for start-ups will be

further strengthened as part of government measures to combat the coronavirus pandemic with a budget

of 2 Billion Euros on a tailored support.

Quick Facts:

The new package of measures includes the following elements, which will be implemented step by step:

> Additional public funding will quickly be made available to public venture capital investors (both individual

funds as well as funds of funds, e.g. KfW Capital, the European Investment Fund (EIF), the High-Tech Gründerfonds,

Coparion). This money will be used for funding rounds for start-ups as part of co-investments

made jointly with private investors.


> The plan is to provide the funds of funds KfW Capital and the EIF with additional public funding so that they

are able to take over the stakes of funds that pull out.

> Venture capital financing and equity replacement financing will be facilitated for small businesses and

new start-ups that do not have venture capitalists as shareholders In parallel the government continues

working on:

> “future fund” for start-ups, to emerge successfully from the crisis

Source (in German): 04.04.2020; https://www.bmwi.de/Redaktion/EN/Pressemitteilungen/2020/20200401-

customised-support-for-new-businesses-affected-by-the-coronavirus-crisis.html

TAKE ACTIONS ON YOUR OWN

It is very important that you check your finances, cash flow, liquidity, spending and taxes. Keep the fire burning

for the next weeks and months! Get help!

Tax actions

Tax deferral: If you or your company are unable to make tax payments due this year based on the fact of

the economic consequences caused by the corona pandemic, you can defer the current taxes. Apply to your

tax office by December 31, 2020.


1. BUSINESS DEVELOPMENT UP TO € 4,000 CONSULTING SERVICE

On April 3rd, a modified guideline for the promotion of entrepreneurial know-how for corona

affected companies came into force. As of now, these freelancers and companies can apply for advice (up to

a consulting value of 4.000€) for small and medium-sized enterprises (SMEs) as well self-employed and freelancers

are encouraged without their own contribution.

Source (in German): April 6th, 2020 - https://www.bafa.de/DE/Wirtschafts_Mittelstandsfoerderung/Beratung_

Finanzierung/Unterntschaftsberatung/unterntschaftsberatung_node.html

2. ADJUST YOUR TAX PREPAYMENTS

> corporate tax (Köperschaftssteuer)

> income tax (Einkommensteuer)

> trade tax (Gewerbesteuer)

> value-added tax (Umsatzsteuer)

Defer taxes due (interest-free)

> corporate tax (Köperschaftssteuer)

> income tax (Einkommensteuer)

> trade tax (Gewerbesteuer)

> value-added tax (Umsatzsteuer)

> most German finance authorities waive penalty for late payment of tax

> extension of deadlines for tax declarations

> enforcement measures for income and corporate taxes are paused till the end of the year

More arrangements are in discussion at the moment.

Source (in German): 31.03.20 - https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Schlaglichter/Corona-Schutzschild/2020-03-19-steuerliche-Massnahmen.html

3. BASIC LIVELIHOOD AND STAY IN YOUR OWN APARTMENT FOR THE SELF-EMPLOYED

With an additional 3 billion euros, the federal government is now ensuring that the self-employed have easier

access to basic security. This means that livelihoods and accommodation during the crisis can be secured

despite loss of earnings - so staying in one's own home is ensured. As an applicant for basic security, you will

not have to disclose financial circumstances or touch your assets in the next few months.

These exceptions apply for six months. So that the benefits can be paid out very quickly, basic security applications

are provisionally approved. The means test is carried out retrospectively.

All details on the specific application will follow shortly here, our page is continuously updated.

Source (in German): 30.03.2020 - https://www.arbeitsagentur.de/corona-faq-grundsicherung


4. IMMEDIATE CHILDREN`S ECONOMIC ASSISTANCE (NOTFALL-KINDERZUSCHLAG)

From April 1st on there is a possibility to apply for an Immediate Children´s Economic Assistance. This is up

to € 185 per month and child.

Who can apply:

> who receives short-time work allowance

> who is self-employed and has no income

> who earns less money because there is no over-time

> who receives unemployment or sickness benefit

Notice: self-employed, please contact your health insurance

Follow the link for a quick check:

Source (in German): 01.04.2020 - https://www.arbeitsagentur.de/familie-und-kinder/notfall-kiz

5. PAYMENT OF SOCIAL SECURITY CONTRIBUTIONS

Employer, self- employed, artists and publicists can adjust their social security contributions. There are 2

options to reduce the social security contribution to a minimum rate or to defer. Please talk to your health

insurance. We can support you with that!

Source (in German): 06.04.2020; https://bayern-kreativ.de/aktuelles/corona-erste-hilfe/

Update – 20.04.2020:

Bavaria decides to support artists with 1.000€ per month for the next three months. Artists who are also

organized in the Artists‘ Social Fund are considered here.

Source (in German): 20.04.2020; https://www.welt.de/regionales/bayern/article207373493/Bayern-zahlt-

Kuenstlern-Hilfen-von-1000-Euro-pro-Monat.html

6. WHAT ABOUT THE PAYMENT IF MY JOB/PROJECT IS CANCELLED

Whether you receive a default fee from the client depends on your individual contract conditions. Agreements

made verbally or via SMS / WhatsApp are also effective here. When concluding new contracts, make

sure that there are rules on default fees. If you have already performed partial services in a project, you are

at least partially entitled to the fee. There are currently no compensation payments for default fees from

the state.

Holders of a perception contract from the independent scene can apply for a one-time emergency aid in

the amount of 250 euros in the event of loss of fees in connection with COVID-19 via the Society for the

Utilization of Performance Protection Rights mbH (GVL). If you are concerned, please contact GVL (https://

www.gvl.de/) directly to apply. Further information from other collecting societies on the regulation of

hardship cases is not yet available.

Source (in German): 06.04.2020; https://bayern-kreativ.de/aktuelles/corona-erste-hilfe/


7. COMPENSATION FOR A BAN ON ACTIVITIES UNDER THE INFECTION PROTECTION ACT

(INFEKTIONSSCHUTZGESETZ, IFSG)

In case of a job ban due to the Infection Protection Act (IfSG) you can get a compensation, if you are not sick

(other regulations).

Please contact your local responsible authority to apply for compensation.

Source (in German): 31.03.2020 - https://www.regierung.oberbayern.bayern.de/aufgaben/37198/40425/

leistung/leistung_53462/index.html

English Source (in German): 08.04.2020 - Page 2. Sektion II. Number7. https://www.cov.com/-/media/

files/corporate/publications/2020/03/german-labor-law-consequences-of-covid-19.pdf

Liquidity Bottleneck / Dept Overload

Latest Status: 06.04.2020

If you no longer see a way to save your company's liquidity and your livelihood, there is good news are: The

government is working on special regulations - more information with be released in due course.

Suspension of the insolvency application

Retrospective to 1th March 2020 and valid till 30.09.2020

With the recent announcement of the law to mitigate the consequences of the COVID-19 pandemic in civil,

bankruptcy and criminal law, the regulations for the suspension of the insolvency application obligations

come into force. These measures are intended to provide affected companies with time for restructuring

efforts and negotiations with their creditors

Source (in German): 6.04.2020 - https://www.bmjv.de/DE/Themen/FokusThemen/Corona/Insolvenzantrag/

Corona_Insolvenzantrag_node.htm

Protection of private and commercial renting

The coronavirus pandemic has also led to some exceptions in Germany’s otherwise very strict tenancy law:

tenants cannot be evicted during the coronavirus crisis for not paying their rent. This new law applies to rental

debt accumulated between April 1 and June 30, 2020, provided it is based on the effects of the COVID-19

pandemic (if, for instance, you are prevented from going to work).

The fact is, the tenant’s obligation to pay the rent on time remains, but the landlord’s right to terminate tenancies

will be restricted - both for residential and commercial space leases. The government is authorized

to extend the period of the measures until September 30, 2020.

That only means that you can suspend the payment and win time.

Source (in German): 06.04.2020 - https://www.bmjv.de/SharedDocs/Gesetzgebungsverfahren/DE/FH_AbmilderungFolgenCovid-19.html


Right to refuse payments on essential continuing obligations

You have the right to refuse payments on essential obligations. This is one of the special rules in The Introductory

Act to the Civil Code, which is limited in time. Debtors, who cannot fulfil the contractual obligations

caused by COVID-19 pandemic, can refuse the payment for utility bills, for electronic & gas, water, telephone

and internet. Nobody will be cut off from basic services. The federal government has put together an aid

package for consumers and businesses.

If you do not have the money to pay your bills, you have the option of temporarily suspending payment until

June 30, 2020.

Source (in German): 06.04.2020 - https://dip21.bundestag.de/dip21/btd/19/181/1918110.pdf


WE ARE HAPPY TO HELP IN CASE

YOU NEED ASSISTANCE OR HAVE

ANY QUESTIONS.

I. Who are we and why do we know what we are talking about?

Like you, we are affected by the current corona crisis.

We do not like the word "crisis", but it is what it is: a

danger to our livelihoods and businesses. We PINCies

are a marketing agency - PINC Solutions - and a service

agency - PINC Services - and have long been

working in a large flexible network of experts, freelancers

and agencies for micro-entrepreneurs, mediumsized

companies and corporations.

We have learnt a lot in the past few days and nights.

We struggled through applications for short-time

work and emergency aid, we spoke to tax advisors,

lawyers and banks and we inform ourselves daily to

keep an eye on this complex situation. We have summarized

our knowledge in a Corona info website (in

german) so that everyone has an overview: selfemployed

and companies, businesses and start-ups

in Bavaria. We do speak English (an English website

will follow soon), so if you need individual support

please reach out to us.

We are there for our customers whenever they need

us: we stand by with advice and action, explain the

multitude of decisions and initiatives at federal and

state level in "understandable language" and help to

fill out applications. We have decided not to keep

our knowledge to ourselves: because we want to actively

support other self-employed and companies in

this difficult time.

As result heroes, we are pragmatic and solution-oriented.

We see a crisis as an opportunity to anticipate

the financial implications of our current situation

and strive to emerge from this much stronger. We

don't give fear the chance to paralyze us. And maybe

we can spread some of our attitude.


How to reach us?

By phone:

PINC Services Office: +49(0) 0911 / 990 995 20

PINC Services Corona Help Line: +49(0) 0911 / 990 995 28

By email:

info@pinc-services.de

hilfe@pinc-services.de

FAQ

> Is your offer free of charge?

All content and information on our website are of

course free of charge. We keep ourselves up-todate

and research daily from various official sources

(the federal and state governments and the relevant

press).

> How current is the information?

We keep our finger on the pulse every day and

read everything that is published in official reports

from the federal government and the relevant official

sources, which can then be relevant to you as

information. The website is updated daily (if needed).

> How do you know all this?

We are in the area of accounting services and process

optimization anyway and are therefore not

afraid to speak to authorities, lawyers, tax advisors

and banks. We are thorough with the information

we provideand have also applied for the various relief

measures for our companies.


English information on Corona Help for freelancers and businesses

Create successful ePaper yourself

Delete template?

Save as template?