Corona Emergency Aid

Have you received a withdrawal notice for Corona Emergency Aid NRW from the district government?

Do not despair. We will support you quickly and reliably in your defense!

Write or contact us by phone at +49 (0) 2273 - 40 68 504

Withdrawal notice for NRW emergency aid 2020 / Corona emergency aid NRW received from the district government?

We will show you what you are allowed to use the grant money you received for, under what circumstances the benefits must be repaid, and at what point you have committed a criminal offense.

For solo self-employed and microenterprises

The deadline for applying for the Corona Emergency Aid NRW of the federal government ended on May 31, 2020, which had previously been paid out by the states. The federal government's written requests, of the district governments, whether in postal or electronic form, for proof of the proper use of state funds have already been sent and delivered in large numbers.

In principle, due to the different country-specific testing documents and the current high number of 
Subsidy fraud proceedings, which are the Prosecutor's Office already initiated against unauthorized recipients of the funding measures, a very great deal of uncertainty has arisen among the recipients of the funding.

Do not panic. We have already successfully defended many of these proceedings on behalf of our clients and provide you with some answers to the most frequently asked questions on this topic below.

Who has to repay the Corona Emergency Aid NRW / NRW Emergency Aid 2020?

In general, it should first be said that the Corona Grants (Corona Emergency Aid, NRW Emergency Aid 2020)do not have to be repaid. Unless the recipient, then applicant, did not meet the requirements for applying for them, used these funds for the wrong expenses or even made false statements when applying for them.

In addition, it should be said that, in principle, no company is eligible for the use of Corona emergency aid that is already receiving benefits from the Economic Stability Fund, bridging aid, KfW special programs or KfW fast loans or was receiving them at the time of application.

So if you are talking about an exclusively Corona conditional, indexed, Liquidity bottleneck are affected, which economic existence of your business is threatened, you must return the grant funds you received to not repay. In most federal states, the subsidies received may only be used for operating costs, but there are exceptions, such as the states of Badem-Würtemberg and NRW, where parts of the subsidies may even be used for living costs on the basis of a monthly lump sum.

In Badem-Würtemberg the approved lump sum is, for example, at 1.180,00 Euro and in NRW even with 2.000,00 Euro monthly for use in meeting living expenses. 

Corona Emergency Aid NRW / NRW Emergency Aid 2020

What happens if I don't need or use the full amount of the grant to cover my operating costs?

Those who have received more grants, subsidies, than their incurred damage amounts to, must pay back the difference to the responsible authority. This is where the concept of Overcompensation. It should be noted that the overcompensation is the difference from the received Corona Emergency Aid NRW / NRW Emergency Aid 2020 and the actual Liquidity bottleneck amounts. Saved costs must also be taken into account here, e.g. Rent reductions or Deferrals of current items that do not affect the Operating costs are to be assigned.

How to make a Liquidity bottleneck calculated we show you in the following.

How to calculate the liquidity shortage?

A Liquidity bottleneck is calculated from the Difference the continuing revenue from the ongoing business of your company, without adding authorized and received Corona Emergency Aid NRW, less ongoing profit-related material and financial expenses. The evidence for a Liquidity bottleneck is present if within the period of support, in the case of Corona emergency aid this is 3 months, the sum of the actual current commercial material and financial expenses are greater than the sum of the current income from the business operation. 

This is therefore calculated as follows:

continuing income from business operations

Continuous professional material and financial expenses
=
Liquidity bottleneck

If the amount of the negative Liquidity bottleneck greater than or equal to the amount received from you Corona Emergency Aid NRWyou are not obligated to repay the subsidies you have received. 

If the negative amount of the liquidity shortage is less than the disbursed Corona Emergency Aid NRW, the Difference pro rata be repaid to the authority responsible for this.

Is there no Liquidity bottleneck i.e. if your ongoing income is higher than your ongoing professional material and financial expenses, the emergency aid must, of course, be repaid in full to the competent authority.
Below you will find a sample calculation of the Economy.NRW for illustration.

Corona Emergency Aid NRW / NRW Emergency Aid 2020

For which costs may I use the funding from Corona-Soforthilfe NRW?

  • Office expenses: for example, postage, telephony, printers (associated lease payments if any), internet, office supplies.
  • Advertising costs / marketing.
  • Maintenance, repair and upkeep costs.
  • Costs for tax, operational and legal advice.
  • Room costs / rent.
  • Cost of materials, supplies and merchandise.
  • Replacement investments, but only with a respective purchase price of up to 800.00 euros net.
  • Vehicle costs, including vehicle tax and insurance, less private use.
  • Premiums for company insurance policies, chamber dues, dues for professional associations and trade associations.
  • Corona-related capital and operating equipment costs: for example, Plexiglas screens, mask, disinfectant.
  • Scheduled repayments.
  • Lease payments, cancellation costs, reimbursed commissions, and operating prepayments (but excluding tax prepayments).
  • Operating interest on loans, credits, current account and bank charges. 
  • Fictitious entrepreneur's wage, but not in all federal states and also only on condition that no supplementary basic income support has been applied for.

For which costs am I not allowed to use the funding from Corona-Soforthilfe NRW?

  • Private insurance premiums and retirement provision
  • Depreciation
  • Benefits paid to a pension fund
  • Personnel expenses, as short-time allowance is earmarked for this use.
  • Private rental costs
  • Payments to statutory pension, health and long-term care insurance.
  • New operational investments that did not have to be purchased due to Corona-related requirements.
 
It should be noted, however, that the eligible costs may vary depending on the specifics of the federal states.

Under what criteria is the Corona Emergency Aid NRW to be repaid?

The first Criterionwhich inevitably leads to a Repayment obligation of the received Corona Emergency Aid NRW is if it has been applied for, approved and consequently distributed several times. This Double- or even Merhfach distributions must of course be repaid to the competent authority.

Furthermore, there is a Repayment obligation in the case of the Disregard the Application requirements. Indeed, one of the essential application requirements for applying for Corona emergency aid is that, on the date of Dec. 31, 2019, the applying company must be in compliance with Art. 2 (18) of the General Block Exemption Regulation was not in difficulty. Many of the applicants did not consider or overlooked this criterion. The definition of a company in difficulty takes effect as soon as one of the following circumstances applies to the company according to Art. 2 (18) of the General Block Exemption Regulation and reads as follows:

  • In the case of a limited liability company, more than half of the subscribed share capital should have been lost due to accumulated losses.
  • Companies that have received restructuring aid or are subject to a restructuring plan.
  • Companies that meet the requirements of insolvency proceedings or have received rescue aid and have not yet repaid it.
  • Companies in which one shareholder has unlimited liability for the debts of the company/enterprise and, in addition, half of the reported equity has been lost through losses. 

What legal consequences should I expect if I have made false statements when applying for Corona Emergency Aid NRW / NRW Emergency Aid 2020 or have used the funding for the wrong costs?

In principle, a distinction must first be made here between the administrative procedure, the repayment according to §48 and §49a of the Administrative Procedure Act, and the criminal procedure, the Subsidy fraud according to §264 para. 5 StGB to distinguish.

Reclaim of approved and received Corona emergency aid NRW according to §48 and §49a, VwVfG NRW:

The Reclaim of the approved of the Corona Emergency Aid NRW usually happens because you either, as we have already described the funding of the Corona Emergency Aid NRW used for the wrong costs, retroactively considered within the 3-month period of emergency aid no Liquidity bottleneck or have not used the grant funds in full to cover your operating costs.

Here it is nevertheless urgently advisable that you Lawyer with Expertise in this area with regard to your next actions, in order to avoid the Reclaim at contradict or the Repayment to be able to settle the matter properly without having to fear legal consequences from the administrative law proceedings.

Make not the Error and represent yourself, you do not risk in this procedure in which the District government, Prosecutor's Office, investigated against you through legal pitfalls to lose the case. 

Contact us and let yourself be guided by a Law office who has experience in these proceedings. We have already been able to decide such proceedings in favor of our clients many times.

The consequences in the event of losing such a case may result in severe fines and the consequence of being subject to prosecution pursuant to § 49a para.. 3 VwVfG NRW a Refund amount in the amount of 5% above prime rate p.a. under section 247 of the Civil Code for the full amount of the Corona emergency aid received.

Subsidy fraud with regard to the unlawful use of the Corona emergency aid NRW pursuant to Section 264 (5) of the German Criminal Code:

The accusation of the Subsidy fraud is usually issued on the basis of the accusation of false affirmation in lieu of an oath, which means that you will be charged by the Prosecutor's Office accused of providing untruthful information when applying for the Corona Emergency Aid NRW to have made, knowingly, with a criminal intent. 

Therefore, should you receive a decision from the Prosecutor's Office about these charges or a notice of a summons to appear at the court having jurisdiction over you. Police Department or even Prosecutor's Office have received immediately contact a Lawyer which the Expertise in this form of Criminal proceedings has to get advice and representation against the accusations and legally, in the criminal proceedings you are threatened with.

Do without the Advice from the lawyer no statement to the authorities. They would probably only incriminate themselves, to their disadvantage. Silence is golden in this case!

Furthermore, you must know that if on the part of the Prosecutor's Office of the Subsidy fraud accused are additionally charged with another administrative law procedure, namely that of the Reclaim of the Immediate help will have to reckon with.

Contact us and let yourself be guided by a Law office who has experience in these proceedings. We have already been able to decide such proceedings in favor of our clients many times.

The consequences in case of losing such a case can result in a prison sentence of up to 3 years, depending on the severity, as you can see from the judgment of the Berlin-Tiergarten District Court. 

Man convicted of fraud in Corona instant aid scheme

It is the first verdict for fraud in the Corona emergency aid scheme in Berlin: a man collected over 20,000 euros for companies that in some cases did not even exist. The 31-year-old had already confessed at the beginning of the trial. Now he has been sentenced for it.

Because he cheated at the Corona Instant Help in Berlin, the Berlin-Tiergarten District Court has sentenced a 31-year-old man.

He was found guilty on Friday of wrongfully collecting 21,500 euros. The court imposed a suspended sentence of one year and seven months. He must also pay a fine of 2,000 euros.

The accused was guilty of six counts of subsidy fraud, the Tiergarten District Court ruled on Friday. Several times he had applied for subsidies at the Investitionsbank Berlin (IBB) with false data, the judge reasoned. The man behaved socially harmful. However the acts had been made very easy for him.

This is the first verdict for fraud in the Corona emergency aid scheme in Berlin. It is not yet final, the parties to the proceedings can appeal against the verdict within one week.

Confession at the beginning of the trial

The defendant had already admitted at the beginning of the trial two weeks ago that he had made up several companies and defrauded grants. He had applied for 77,500 euros. As court spokesman Raphael Neef said after the verdict was pronounced, in five cases the companies for which the defendant had applied for aid did not exist. In one case, false employee figures had been given.

Following a suspicious activity report from his bank, the public prosecutor's office investigated, and the defendant was then remanded in custody at the end of April. The man paid back the money.

At the beginning of the trial, the 31-year-old had explained that after several of his acquaintances suddenly had "pockets full of money", he had decided to "join in the rally". His defense lawyer explained that sums had been paid out without checks - "it was child's play and word had got around". In the digitally submitted applications, only a few data had been requested.

At the request of the prosecutor, the court provisionally closed one case of the original seven cases in the indictment.

Source: rbb24.de

What costs should I expect if I am represented by a lawyer?

Of course, legal representation by a Lawyer moneyThis is clear, but you will incur much higher costs if you are not represented. In the worst case costs You that not only Moneybut also your Freedom!

A defense in pre-trial proceedings, which ends with a dismissal of the case, costs defendants approx. 650,- EUR. However, if it is not possible to bring about a discontinuation in the course of the proceedings, but the public prosecutor's office brings charges against you, the defendants must refer to
approx. 1200,- EUR Set total cost.

If a Acquittal effects in such a case, the Costs for this even from the Treasury worn. However, only in the event of a Acquittal!

We are, of course, happy to assist affected parties nationwide with a defense. Simply contact us at 
info@kanzlei-baumfalk.de or by telephone
at +49 (0)2273 - 40 68 504.

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