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Saxony-Anhalt’s COVID-19 relief funds at risk for 10,000 businesses

A final warning goes out to thousands of businesses—submit documents now or lose lifeline funds. Time is running out for those still struggling post-pandemic.

In this image, I can see the cars on the road. I can see four people standing. These are the...
In this image, I can see the cars on the road. I can see four people standing. These are the buildings with the windows. I can see the trees. I think these are the emergency warning triangle.

Thousands of Companies Face Revocation of Corona Emergency Aid - Saxony-Anhalt’s COVID-19 relief funds at risk for 10,000 businesses

Thousands of small business ideas in Saxony-Anhalt face losing their COVID-19 emergency relief funds after failing to complete a mandatory follow-up review. The state distributed around €287.3 million in aid between March and June 2020 to help businesses weather the pandemic’s economic impact. Now, those who missed documentation deadlines have received a final warning before potential revocation of their business aid.

The emergency aid programme was part of wider government support during the crisis, with Saxony-Anhalt approving 37,000 business applications. By the end of September, roughly 10,000 businesses still had not submitted the required follow-up paperwork, down from an initial 17,000 non-compliant cases. No formal revocation orders have been issued yet, but affected businesses now have one last chance to respond and avoid losing their business relief funds.

In September, the Investment Bank eased repayment terms to help struggling businesses. Firms can now repay funds in instalments over up to 72 months, with no interest on deferred payments. So far, about €28 million of the aid has already been repaid. Eligibility for these simplified terms, however, depends on completing the mandatory review.

The final notice gives businesses a last opportunity to avoid losing their relief funds. Those who fail to act risk formal revocation of the aid they received during the pandemic. The state has not publicly named any specific businesses facing this deadline.

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