Überbrückungshilfe III (Bridging Aid III) is also intended to provide stronger support to self-employed individuals affected by the coronavirus crisis. To this end, the so-called Neustarthilfe (Restart Aid) has been increased from an original EUR 5,000 to a current maximum of EUR 7,500. The funding period of the Neustarthilfe covers 1 January 2021 to 30 June 2021, and applications may be submitted through 31 August 2021 inclusive via a reviewing third party (e.g. a Steuerberater (German Certified Tax Advisor)). Please note that an applicant may apply only once, either for Überbrückungshilfe III to reimburse fixed costs or for the Neustarthilfe. In addition, each applicant may submit only one Neustarthilfe application.
Parties eligible for the Neustarthilfe
- Solo self-employed individuals
- Solo self-employed individuals operating through a partnership (e.g. GbR, OHG or KG)
- Corporations with one or more shareholders (e.g. GmbH, AG or KG)
Requirements for solo self-employed individuals with or without a partnership:
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The majority of income (at least 51%) must derive from commercial activity (§ 15 EStG) or self-employed activity (§ 18 EStG)
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Not more than one part-time employee
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Self-employed activity commenced before 1 May 2020
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No application for Überbrückungshilfe III filed
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Excluded if "economic difficulties" (as defined in § 2 Nr. 18 AGVO) have already existed since 31 December 2019
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Requirements for corporations with one or more shareholders:
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The majority of revenue (at least 51%) must derive from commercial activity (§ 15 EStG) or freelance activity (§ 18 EStG)
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Not more than one part-time employee
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Incorporated before 1 May 2020
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No application for Überbrückungshilfe III filed for the corporation
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The applying shareholder must work at least 20 hours per week for the corporation
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For corporations with one shareholder, that shareholder must hold 100% of the corporation
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For corporations with several shareholders, one of these shareholders must hold at least 25% of the corporation
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Disbursement of the Neustarthilfe
The Neustarthilfe is disbursed in two stages. After the application is approved, the first stage consists of an advance payment. This advance is granted as a one-time payment of up to EUR 7,500 (the maximum limit for corporations with several shareholders is not yet known) and amounts to 50 percent of the six-month reference revenue. The reference revenue is calculated on the basis of the 2019 calendar year (1 January 2019 – 31 December 2019). The applicant's 2019 annual revenue is divided by the number of months and then multiplied by six.
Reference revenue = (annual revenue 2019 / 12 months) * 6
Neustarthilfe = 50% of the reference revenue
For self-employed individuals or corporations that commenced operations after 1 January 2019 and before 1 May 2020, three different calculation methods are available. Applicants may choose between these methods.
- Reference revenue = (annual revenue 2019 / number of full months of business activity in 2019) * 6
- Reference revenue = ((revenue January and February 2020) / 2) * 6
- Reference revenue = ((revenue July, August and September 2020) / 3) * 6
The second stage of disbursement takes place after the funding period ends. Applicants must report the revenue generated as a self-employed individual or by the corporation during the funding period (1 January 2021 – 30 June 2021). It is then reviewed to what extent the applicant may retain the advance payment. As a general rule, if revenue is 40 percent or less compared to the reference revenue, the applicant does not have to repay any of the advance.
Frequently asked questions
Frequently asked questions
Who is eligible to apply for the Neustarthilfe (restart aid) under Überbrückungshilfe III (Bridging Aid III)?
Eligible applicants are solo self-employed individuals (including those operating through a partnership such as a GbR, OHG, or KG) as well as corporations with one or more shareholders. The requirements are that at least 51% of income or revenue must derive from commercial activity (§15 EStG) or self-employed activity (§18 EStG), no more than one part-time employee is employed, and the activity or business was established before 01.05.2020. In addition, no application for Überbrückungshilfe III may have been submitted.
How much is the Neustarthilfe (restart aid) and how is it calculated?
The Neustarthilfe amounts to 50% of the six-month reference turnover and is capped at a maximum advance of EUR 7,500. The reference turnover is generally derived from the 2019 annual turnover: (2019 annual turnover / 12) × 6. Applicants who started their business activity between 01/01/2019 and 01/05/2020 may choose between three alternative calculation methods.
By when can the Neustarthilfe (restart aid) be applied for and who is eligible to file the application?
The funding period covers 01/01/2021 to 06/30/2021. Applications can be submitted until 08/31/2021 at the latest, and exclusively via an examining third party such as a Steuerberater (German Certified Tax Advisor). Each applicant may file only one application for Neustarthilfe, and a choice must be made between Neustarthilfe and Überbrückungshilfe III (bridging aid III).
What special requirements apply to corporations under the Neustarthilfe (restart aid)?
The applying shareholder must work at least 20 hours per week for the corporation. In single-shareholder corporations, they must hold 100 % of the shares; with multiple shareholders, at least 25 %. In addition, no more than one part-time employee may be employed, the company must have been established before 1 May 2020, and no application for Überbrückungshilfe III (bridging aid III) may have been filed.
Does the Neustarthilfe (restart aid) have to be repaid?
The payment is initially made as an advance. After the end of the funding period (30 June 2021), the actual revenues generated must be reported. If revenue during the funding period is no more than 40% of the reference revenue, the advance may be retained in full. If revenues exceed this threshold, a proportional repayment is required.