Coronavirus aid relief partially waived in Saxony by the Commission's decision
## COVID-19 Emergency Aid Repayment Terms in Saxony: A Clarification
The Saxony Minister of Economics, Dirk Panter, has announced a repayment process for Coronavirus emergency aid provided to affected businesses in the region. The repayment terms are based on the federal German emergency aid programs, with some specific adjustments for Saxony.
### Key Features of the Repayment Process
The repayment process for Coronavirus emergency aid in Saxony will follow the general structure of the federal German emergency aid programs, which Saxony has likely adopted or referenced. Key features include:
- **Grace Period:** Businesses will not have to make any repayments for the first six months after the aid was received. After this period, a fixed interest rate between 0.5% and 1.5% will be granted for the remaining repayment term, which can be up to 36 months. - **Interest Rates:** After the six-month interest-free period, businesses will have to repay the principal amount with a fixed interest rate. - **Exemptions:** Entrepreneurs could be exempted from repayment if their net income from the tax return of 2023 is less than €35,000 net and their assets do not exceed €40,000. Exemption criteria also include a claim for child benefit, which increases the limits.
### Application and Repayment Procedures
The Saxon Reconstruction Bank (SAB) has set up a hotline (0351 4910 4999) and a dedicated website (www.sab.sachsen.de/corona-rueckmeldeverfahren) for businesses to apply for emergency aid and participate in the repayment process.
As of the current date, 672.7 million euros have been paid out, with more than 49,000 cases already having completed the proceedings. Around 2.9 billion euros were paid out to almost 98,000 recipients in Saxony, which corresponds to almost three quarters of Saxon businesses.
### Advocacy and Criticism
Jörg Urban, the Saxon AfD chairman, has suggested that businesses should be compensated for "lockdown damages." The Greens in the state parliament have stated that while something has moved in favor of businesses, they still consider the approach as a patchwork. Wolfram Günther, the economic policy spokesman for the Greens, has demanded complete interest exemption for repayment. The Greens and the Left in the Saxon state parliament advocate for a nationwide uniform approach to this issue.
### Exclusions and Asset Considerations
Real estate assets are not taken into account in the exemption criteria. Important information can be obtained under the website: www.sab.sachsen.de/corona-rueckmeldeverfahren.
As the repayment process unfolds, businesses are encouraged to stay informed and participate in the process to ensure a smooth transition back to regular financial operations.
- The repayment process for Coronavirus emergency aid in Saxony, which follows the federal German emergency aid programs, also applies to businesses in the finance sector.
- Politics and general news have covered the repayment process, with debates revolving around potential compensations for businesses for lockdown damages, interest exemptions, and the need for a nationwide uniform approach to this issue.
