Restart assistance for solo self-employed persons - current status
Here you will find a brief summary of the restart aid, which can be applied for immediately (as of 16.02.2021).
Restart assistance supports solo self-employed persons whose economic activity is restricted due to coronavirus in the funding period from January 1 to June 30, 2021. It supplements the existing security systems, such as basic income support. Restart assistance is not offset against basic income support benefits.
Who can apply for restart assistance?
Currently natural persons who are self-employed in all sectors and
- exercise their self-employed activity as freelancers or tradespeople as their main occupation,
- employ less than one full-time employee,
- are registered with a German tax office for tax purposes,
- have not claimed or are not claiming any fixed costs in Bridging Assistance III and
- have commenced their independent business activity before May 1, 2020.
What and how does Restart Aid support?
The funding period for the start-up aid is January to June 2021. The start-up aid is a one-off payment of 50% of a six-month reference turnover, which is calculated on the basis of the 2019 annual turnover, up to a maximum of EUR 7,500, and is paid out in a single amount. The calculation of the reference turnover is explained in FAQ 3.2.
Example: Annual turnover 2019 = € 30,000.00
50% of 30,000.00 = € 15,000.00 six-month reference turnover
➡️ Prerequisite fulfilled, new start aid in the amount of € 7,500.00 is paid out as an advance.
If a solo self-employed person meets the application requirements, the start-up aid is paid out as an advance before the actual turnover in the funding period is known. Only after this period has expired, i.e. from July 2021, will the amount of the new start aid to which the solo self-employed person is entitled be calculated on the basis of the final realized turnover for the months of January to June 2021. This final statement must be prepared by December 31, 2021. The solo self-employed person may keep the full amount of the restart aid granted as an advance if they have suffered a loss in turnover of more than 60%. If the loss of turnover is lower, the restart aid must be repaid(pro rata) by June 30, 2022. It is therefore to be understood as a liquidity advance that must be repaid (pro rata) in the event of a positive business performance by the solo self-employed person. Information on preparing the final invoice can be found in FAQ 4.6.
Example: Final invoice less than 40% of the reference turnover (€ 15,000.00) = € 6,000.00 turnover achieved, the € 7,500.00 can be kept in full.
How do I apply for restart assistance?
Solo self-employed persons who apply for the one-off start-up aid must submit their applications directly here(direct application / bridging aid for companies) and use the ELSTER certificate known from the tax return. The restart aid is usually paid out a few days after the application is submitted.
Important information on submitting an application:
- Each self-employed person can only submit one application for start-up assistance for the entire funding period.
- The direct application for restart assistance can only be submitted once. It is not possible to change the application after it has been submitted. Therefore, please complete the direct application carefully and calmly.
- You can either apply for Restart Aid or Bridging Aid III. If you have submitted an application for Restart Aid, you cannot withdraw it at a later date in order to apply for Bridging Assistance III.
We are always available to answer any questions you may have.
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