Demand for consulting subsidies for SMEs and sole proprietors affected by the coronavirus has exceeded all expectations of the BAFA and the German federal government. The funding pool was fully exhausted after less than two months of the programme's runtime. No further funds will be made available for this specific coronavirus funding module. The programme is therefore being discontinued ahead of schedule.
This also applies to applications already submitted. Funding can only be approved, and costs only reimbursed to the consultant, if the applicant has received a notice of prospective approval from the BAFA. If this has not yet happened, applications may still be considered over the coming months through a waiting-list procedure. The funding programme stipulates that a "qualifying proof of use" must be submitted. It is now also an explicit prerequisite that the BAFA has sufficient budgetary resources available.
All other BAFA programmes for the promotion of entrepreneurial know-how remain in place. Further information is available on the BAFA website: Programme page and press release on the termination of the programme.
The Süddeutsche Zeitung had already reported on the discontinuation of the programme on 14 May and 28 May. The newspaper particularly highlighted the misuse that apparently took place on a broad scale with these funds. On 14 May, the headline read "How self-proclaimed business consultants are trying to get hold of aid money". By 26 May, it read "Fraud on a broad scale".
In conclusion, it can be said that the federal government genuinely sought, through this programme, to help businesses become coronavirus-resilient and future-proof through consulting. If a majority of insubstantial or even fraudulent applications has overburdened the programme, such (attempted) subsidy fraud can only be condemned. It is unfortunate for those businesses that would have needed this support. For the consulting industry, as the Süddeutsche writes, it is "a slap in the face of those who played by the rules and provided good advice."
Frequently asked questions
Frequently asked questions
Is the BAFA consulting subsidy for businesses affected by Corona still available?
No, the special Corona consulting subsidy from BAFA was discontinued early. The funding pool was fully exhausted after less than two months of program runtime, and no further funds will be made available for this module.
What happens to applications already submitted for the BAFA Corona consulting subsidy?
Only applications for which the BAFA has already issued a preliminary approval (Inaussichtstellung) will be granted and paid out. Otherwise, consideration is only possible through a follow-up procedure, provided that an eligible proof of use is submitted and sufficient budget funds are available.
What requirements apply under the BAFA consulting subsidy supplementary admission procedure?
Under the supplementary admission procedure (Nachrückverfahren), an eligible proof of use must be submitted. In addition, it is explicitly required that BAFA has sufficient budgetary funds available to grant the approval.
Have all BAFA funding programmes for business consulting been discontinued?
No, only the special Corona module has been discontinued. The other BAFA programmes promoting entrepreneurial know-how remain in place and can be used as usual.
Why was BAFA's coronavirus consulting subsidy exhausted so quickly?
Demand far exceeded all expectations. At the same time, according to reports by the Süddeutsche Zeitung, there was a significant number of abusive and partly fraudulent applications. This overstretching of the program contributed to the funds being used up prematurely.