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Coronavirus – COVID-19 Aid Fund – Austria

  • Austria
  • Coronavirus
  • Coronavirus - Country overview
  • Coronavirus - Trade and State Aid issues

08-04-2020

The Austrian Federal Government has made 15 billion euros available to the COVID-19 Aid Fund. This is to support those companies that are struggling with massive declines in sales and liquidity shortages due to the corona crisis. The aim of the fund is to reduce the economic damage and ensure the survival of companies.

Support from the Coronavirus Relief Fund can be applied for from 8 April 2020.

The COVID-19 Relief Fund has two instruments:

Credit guarantee of the Republic of Austria

One instrument is the guarantee provided by the Republic of Austria to secure working capital loans. The maximum term is five years and can be extended by up to five years. In order to apply for a guarantee, the following conditions must be met by the applying company:

- the business activity must be carried out in Austria

- the liquidity requirement must be in Austria

- a 50% reduction in bonuses paid to members of the management board

- no dividend payment may be made in the year in question

The guarantee covers 90% of the loan amount. The upper limit for this is a maximum of three monthly turnover or a maximum of 120 million euros. This can only be increased in justified exceptional cases.

A loan interest rate of a maximum of 1% and guarantee fees are applied, which are determined by the EU and range between 0.25% and 2% depending on the size of the company and the duration of the guarantee.

Subsidy for the operating costs

The second instrument is the subsidy for those companies that suffer a drop in turnover of at least 40% for the whole year as a result of the COVID-19 crisis. This subsidy is the part of the guaranteed loan that no longer needs to be repaid.

Depending on the extent to which the company is affected, fixed costs and spoiled goods up to of 25-75% will be reimbursed or are no longer repayable from the working capital loan taken out. The fixed costs include rent, electricity, gas, interest expenses and perishable and seasonal goods that have lost at least 50% in value due to the Corona crisis. The basis for assessment is the company's fixed costs and loss of revenue between 15 March 2020 and the end of the COVID-19 measures.

The applications must include a presentation of the fixed costs actually incurred and the actual loss of sales. The information must be checked and confirmed by a tax advisor/auditor before submission. The fixed cost subsidy can be applied for from 15 April 2020 until 31 December 2020. Payment will be made after the damage has been determined, i.e. after the end of the business year and after submission of the tax advisor's or auditor's confirmation of the decline in turnover and the reimbursable fixed costs. The fixed cost subsidy is limited to a maximum of EUR 90 million per company and is tax-free, but reduces the deductible expenses by the corresponding amount.

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