Blümel: We Are Continuing to Help Those Businesses That Need It
Austrian Finance Minister Gernot Blümel announced that businesses can apply for two types of aid to help mitigate struggles due to the ongoing COVID-19 pandemic and economic crisis. The default bonus II has been adapted and extended until the end of September, and the loss replacement until the end of the year.
Finance Minister Gernot Blümel: "For all companies that are still suffering from the economic consequences of the Corona pandemic, the default bonus and loss replacement can be applied for under adapted conditions as of today." / Picture: © Bundeskanzleramt (BKA) / Andy Wenzel
Despite the recent boost in business thanks to increased vaccinations and testing, some sectors of the Austrian economy are still struggling to recover from the COVID-19 crisis. To help mitigate the struggles of businesses on the path to recovery, Austria has announced that it is once again offering aid to those who need it.
It is now possible to apply for two COVID aids for the month of July 2021. The so-called “default bonus II” has been adapted and extended until the end of September, and the loss replacement until the end of the year.
Regarding the aid opportunities, Austrian Finance Minister Gernot Blümel said, “For all companies that are still suffering from the economic consequences of the Corona pandemic despite the economic upswing in recent months, the default bonus and loss replacement can be applied for under adapted conditions as of today. In this way, we are continuing to help those businesses that need it.”
Unlike the previous default bonus and the lockdown revenue replacement II for indirectly affected companies, the default bonus II is calculated differently from sector to sector and depends on the amount of revenue loss. In any case, there are 100 euros and a maximum of 80,000 euros per calendar month. In addition, the amount of the default bonus is capped in that the sum of the default bonus II and the short-time working allowances may not exceed the comparative sales of the respective calendar month in 2019. The deadline for applying for the default bonus II expires in mid-November.
It is also possible to apply for the first tranche of the extended and adapted loss compensation. Up to six consecutive months can be selected for this, provided there is a revenue shortfall of at least 50 percent in all months compared to the same month in 2019. Whether one has applied for loss replacement prior to the extension, i.e., for consideration periods prior to July 2021, is not taken into account. Thus, a “time gap” between the products is not detrimental to funding.
The loss compensation is paid out in two tranches, and these must be applied for separately. In the first tranche, 70 percent of the expected loss compensation can be applied for and paid out. The second tranche basically covers the remaining 30 percent, but any corrections must be taken into account here.
The application period for the first tranche of loss compensation runs until 31 December 2021. From 1 January 2022, the entire loss compensation can then also be applied for as part of the second tranche. The application period for the second tranche and thus also for the extended loss compensation ends on 30 June 2022.
As of 11 August 2021, the default bonus has paid out € 2.7 billion to more than 400,000 applicants since November 2020. The average applicant has received around € 6,654. In the case of loss compensation, around € 266,000 has been paid out to 675 applicants. Here, applicants received an average of around € 400,000.