News and views

Information on Interim Aid III

In times of Corona, Germany offers companies, self-employed workers and freelancers of all sectors financial support. In this article, we would like to present the current corona-aid program called `Interim Aid III´. Applications can be submitted until August 31, 2021.

Eligibility to apply

To be eligible to apply, there must be a Corona-related drop in sales of at least 30% in a given month compared to the 2019 reference month. The calculation is made individually for each month.

Amount of financial support

Depending on the intensity of the sales slump, this results in different levels of support. Interim Aid III reimburses a share in the amount of:

  • up to 100% of fixed costs if sales decreased more than 70%
  • up to 60% of fixed costs if sales decreased by ≥ 50% to ≤ 70%
  • up to 40% of fixed costs if sales decreased by ≥ 30% to < 50%

in the month of funding compared to the corresponding month in 2019.

Eligible fix costs

The guidelines of Interim Aid III determine a catalogue of eligible costs (`Fixkostenkatalog´). This catalogue includes rents and leases, interests, 50% of the deprecation of fixed assets, leasing payments, costs for maintenance, electricity, water, heating, cleaning, property tax, license- and insurance fees. Staff expenses are subsidized via a lump sum, which must be calculated specifically. Under certain conditions, costs for hygiene concepts, investments in digitalization as well as marketing and advertising costs are eligible.

Equity Grant

In addition to Interim Aid III, companies with sales that decreased sharply as a result of the corona pandemic can apply for an equity grant.
The equity grant is available to all companies that have suffered a drop in sales of more than 50% in at least three months, in the period from November 2020 to June 2021. The corresponding months do not have to follow directly on each other.
The funding level is staggered: The longer companies have suffered a drop in sales of at least 50%, the higher the equity grant. The additional subsidy is granted from the third month of the drop in sales and amounts to 25% in this period. In the fourth month, in which there is a drop in sales of at least 50%, the subsidy increases to 35%. For five months or more, the subsidy continues to climb to 40%. The percentage rate of equity grant shall be applied on the subsidized fixed costs in accordance with number 1 to 11 of the catalogue of eligible costs.

Further challenges

The funding guidelines for Interim Aid III have often been readjusted. The guidelines are complex and include a lot of special regulation which can affect the amount of Interim Aid III fundamentally. Another hurdle for applying for Interim Aid III is the confusion of European state aid law.

Martin Brodacki, Tax Assistant,
Sonntag & Partner



Who doesn’t dream of studying at Harvard one day? To live and learn at its famous campus?

Read more

We can do corporate finance too!

In our brand new Corporate Finance newsletter you will find exciting information on all aspects of company valuation.

Read more

New mandatory IIA standards for internal auditing from 2025

Our RAS team has published an exciting blog post:

Read more