Bridging Aid III (Überbrückungshilfe III)
Bridging Aid III is intended as an extension of the expiring Bridging Aid II in order to continue supporting businesses in 2021 that are particularly affected by the coronavirus pandemic. Applications can be submitted from 10 February 2021 until 31 August 2021 through your Steuerberater (German Certified Tax Advisor) and cover the period from November 2020 to June 2021. Clients who have already filed applications for the November and December support programmes will not receive any additional funding for those months. After initial uncertainty due to suspected fraud relating to the coronavirus aid programmes, the Federal Ministry for Economic Affairs announced on 12 March 2021 that the regular disbursements under Bridging Aid III would now commence.
Changes and Eligibility Requirements for Bridging Aid III
Bridging Aid III is designed to further simplify the eligibility requirements for applying for the subsidies. All businesses with a revenue loss of at least 30% during the months from November 2020 to June 2021 are eligible for support. The reference months in 2019 will once again serve as the basis for comparison. As a result, the additional requirements under Bridging Aid II — such as specific periods of revenue loss and the degree of impact — no longer apply. Bridging Aid III also extends support to non-profit organisations (youth hostels, family holiday centres, etc.) and to large enterprises with annual revenues of up to EUR 750 million in 2020. The maximum funding amount has been raised considerably, from EUR 50,000 per month to EUR 1.5 million per month. Advance payments have likewise been increased from EUR 50,000 to EUR 100,000 per funding month and are to be granted to all businesses on equal terms. In addition, the reimbursement of fixed costs has been expanded: structural measures and renovation costs incurred to comply with hygiene requirements are now supported with up to EUR 20,000 per month. Investments in the digitalisation of businesses prompted by the pandemic are also eligible for one-off funding of up to EUR 20,000. This covers costs such as setting up an in-house online shop or fees for using other internet sales platforms. Applications for the reimbursement of these costs may be filed retroactively to the beginning of the pandemic in Germany, i.e. March 2020. Bridging Aid III also contains special provisions for sectors particularly affected by the pandemic, such as the travel industry, the events and cultural sector, and retail. In retail, costs arising from unsellable or seasonal goods (e.g. clothing, fruit and vegetables, etc.) qualify as reimbursable fixed costs. In addition, depreciation costs on business assets may be claimed in the funding application at up to 50%. In the events and cultural sector, internal and external cancellation costs incurred between March and December 2020 may be claimed. The severely affected cultural sector is to be supported through special payments for cancelled events.
Amount of Funding
The funding levels under Bridging Aid III are structured identically to those of the previous Bridging Aid II:
- up to 90% of eligible fixed costs in the case of revenue losses exceeding 70%
- up to 60% of eligible fixed costs in the case of revenue losses between 50% and 70%
- up to 40% of eligible fixed costs in the case of revenue losses exceeding 30%
Frequently asked questions
Frequently asked questions
What period does Überbrückungshilfe III cover and by when can it be applied for?
Überbrückungshilfe III covers the funding period from November 2020 to June 2021. Applications can be submitted between 10/02/2021 and 31/08/2021 through a reviewing third party (e.g. Steuerberater (German Certified Tax Advisor)). No additional funding is available for months in which November or December assistance has already been received.
What revenue loss is required for Bridging Aid III (Überbrückungshilfe III)?
Eligible applicants are companies with a revenue decline of at least 30% compared to the corresponding reference month in 2019. The additional requirements of Bridging Aid II regarding time periods and degree of impact no longer apply. Access has therefore been significantly simplified compared to the previous regulation.
How is the fixed cost reimbursement structured under Überbrückungshilfe III?
Reimbursement is tiered according to the decline in revenue: up to 90% of eligible fixed costs for a revenue drop of more than 70%, up to 60% for a decline between 50% and 70%, and up to 40% for a decline of more than 30%. This tiered structure mirrors the approach used under Überbrückungshilfe II.
What are the maximum funding amount and advance payments?
The monthly maximum funding amount has been raised from 50,000 euros to 1.5 million euros. Advance payments can be up to 100,000 euros per funding month and are granted equally to all eligible companies.
What special rules apply to retail and the travel, events and cultural sectors?
In retail, losses in value on unsellable or seasonal goods (e.g. clothing, fruit, vegetables) qualify as eligible fixed costs, and depreciation on assets can be claimed at 50%. In the events and cultural sectors, internal and external cancellation costs from March to December 2020 are eligible, supplemented by special payments for cancelled events.
Are investments in hygiene measures and digitalization subsidized?
Yes. Structural measures and renovations to comply with hygiene requirements are subsidized with up to 20,000 euros per month. Digitalization investments, such as setting up an online shop or costs for online sales platforms, are funded on a one-time basis with up to 20,000 euros and can be claimed retroactively from March 2020.