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How freelancers and small businesses can apply for coronavirus payments in Germany

Are you a freelancer, self-employed or have a small business? Here's where to apply for financial help if you're affected by the coronavirus pandemic in Germany.

Published: 30 March 2020 12:32 CEST
Updated: 6 April 2020 09:11 CEST
How freelancers and small businesses can apply for coronavirus payments in Germany
A shop in Berlin displaying a closed sign. Many businesses are affected by the corona crisis. Photo: DPA

The coronavirus pandemic is having massive economic consequences, with many people in Germany and beyond losing their jobs or facing financial difficulties.

In fact, experts estimated on Monday that social distancing measures to contain the coronavirus outbreak, which include closing non-essential shops and shutting down public life, will slash German 2020 economic output by 2.8 to 5.4 percent before a rebound next year.

“The German economy will shrink significantly in 2020,” the so-called “Wise Men” expert panel (SVR) said, with the exact size of the impact “depending on the extent and duration of health policy measures and the subsequent recovery, reported AFP.

The federal government and Germany's 16 states have vowed to provide cash to people affected.

Here's an overview of how to apply for it if you're a freelancer, self-employed or small business. States may offer different procedures and payments. Please contact your relevant authority for more information.

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How do you know if you’re eligible?

You must be registered with a German tax office and carry out work from a German permanent establishment/address or a German management headquarters.

Scope of immediate aid: self-employed people and companies with up to five employees can apply for a non repayable one-off grant of up to €9,000

Companies with up to 10 employees can apply for a grant of up to €15,000. Both sums are valid for three months.

Proof of cash difficulties: The applicant must confirm that he/she has encountered financial difficulties as a result of the coronavirus pandemic. Companies must not have already been in financial difficulties on December 31st 2019.

Application deadline: Applications must be submitted by May 31st 2020 at the latest.

READ ALSO: Buy from The Local's readers – help each other through tough times

What's the application procedure?

The Emergency Aid Programme (das Soforthilfe-Programm) involves a bureaucratic application procedure but aims to ensure a rapid payout.

The information provided in the application must be correct – false information may constitute fraud and lead to criminal prosecution. Applications can soon be submitted electronically to the responsible contacts in the state where you live.

It's important to note that you must submit your applications to the competent authority in your federal state.

Here's an overview of where to apply and who to contact for more information.

READ ALSO: Bundestag approves historic coronavirus rescue package

BADEN-WÜRTTEMBERG:

Application to and preliminary assessment by Industrie und Handelskammern (IHK) and Handwerkskammern (HWK), approval through L-Bank. For more information and to apply, visit this site.

BAVARIA:

Moderated by district governments and the City of Munich. For more information and to apply, visit this site.

BERLIN:

Investitionsbank Berlin (IBB). For more information and to apply, visit this site.

BRANDENBURG:

Investitionsbank des Landes Brandenburg (ILB). For more information and to apply, visit this site.

BREMEN:

BAB Bremer Aufbau Bank BIS Bremerhavener Gesellschaft for Investment Promotion and Urban Development mbH. For more information and to apply, visit this site.

HAMBURG:

Hamburg Investment and Development Bank (IFB Hamburg). For more information and to apply, visit this site.

HESSE:

Kassel Regional Council. For more information and to apply, visit this site.

MECKLENBURG-WESTERN POMERANIA:

Mecklenburg-Western Pomerania State Development Institute (LFI-MV). For more information and to apply, visit this site.

LOWER SAXONY:

Lower Saxony Investment and Development Bank – NBank. For more information and to apply click here.

NORTH RHINE-WESTPHALIA:

District governments of Arnsberg, Detmold, Düsseldorf, Cologne, Münster. For more information and to apply, visit this site.

RHINELAND-PALATINATE:

Investment and Structural Bank RP (ISB). For more information and to apply, visit this site.

SAARLAND:

Saarland Ministry of Economics, Labor, Energy and Transport. For more information and to apply, visit this site.

SAXONY:

Saxon Reconstruction Bank – Development Bank (SAB). For more information and to apply, visit this site.

SAXONY-ANHALT:

Saxony-Anhalt Investment Bank. For more information and to apply, visit this site.

SCHLESWIG-HOLSTEIN:

Investitionsbank Schleswig-Holstein (IB.SH). For more information and to apply, visit this site.

THURINGIA:

Thuringia Reconstruction Bank. The acceptance of applications and preliminary tests are also carried out by the IHKn and HWKn. For more information and to apply, visit this site.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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