Germany ready to begin payouts to self-employed and small businesses
German states will begin making direct payments to small businesses and self-employed individuals, freelancers and farmers hit hard by the coronavirus crisis from Monday.
Germany’s regional states and federal government came to an administrative agreement on Sunday to make available 50 billion euros (55.8 billion dollars) in state aid for the precariously employed and others.
The agreement, confirmed in statements from both the German Economics and Finance Ministries, will allow regional governments access to the fund from Monday to pass payments on to those in need.
The coronavirus crisis has proved catastrophic for many small businesses and individual contractors such as musicians, photographers, artists, interpretors and carers.
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With events cancelled and much of the economy shuttered, a vast amount of work has dried up overnight. Few, if any, have a right to sick pay or compensation for cancelled work from regular contractors.
The state aid programme aims to tide groups over who would find it difficult to borrow money and have little or no financial safety net.
Firms with up to five employees are to receive 9,000 euros (10,051 dollars) to last them three months, with the payout increasing to 15,000 euros (16,700 dollars) for companies with up to ten members of staff.
Companies will have to prove they were in good financial health before the crisis hit.
German Economics Minister Peter Altmaier confirmed on Sunday the fund would also be available to farmers.
“As with other small businesses, freelancers and the self-employed, the need of many farmers is currently high,” the minister said. (dpa)
