MTG provides information on rights and obligations when repaying coronavirus aid

Companies that received coronavirus bridging aid had to submit a final statement by the end of September 2024. The granting authorities are now sending out the final notices. Anyone who has to repay coronavirus aid should now know their rights and obligations. "The final statement may result in a repayment if, for example, the corona-related loss of sales was lower than assumed when the application was made," says lawyer Dr. Elske Fehl-Weileder from Schultze & Braun. Stefan Schwindl, auditor and tax consultant at the commercial law firm MTG, adds: "In the event of queries from the approval authorities as part of the final settlement, companies must now prove that the stated decline in turnover was corona-related."

Corona-related decline in turnover must be recognized

If the approval body does not recognize that the decline in turnover was corona-related, any calculation in the final statement is invalid. "As a result, the company must repay the full amount of the bridging aid received," says Fehl-Weileder. "A downgrade - for example in the form of a partial repayment - is out of the question in such cases: there is only up or down!" However, companies that have missed the deadline for submitting the final statement or have not submitted a final statement must repay the aid in full in any case.

Objection and legal action against repayment possible

In principle, companies can appeal against a repayment and take legal action. "Companies in particular whose financial situation is already strained even without a final notice with a repayment for corona aid received should definitely check whether the appeal against the final notice has a suspensive effect," say Fehl-Weileder and Schwindl. An appeal or an action for annulment can have a suspensive effect. The suspensive effect also means that the amount to be repaid does not initially have to be included when examining the question "Is my company still solvent?".

Repayment even in the event of insolvency

However, an objection or an action for rescission does not automatically mean that the repayment claim is off the table. If the company is likely to lack the liquid funds for repayment, they must find a solution with the reclaiming body. If this is not successful, it is possible that a company may become insolvent and/or overindebted as a result of the obligation to repay bridging assistance.

Keeping an eye on the obligation to file for insolvency

In such a case, the management must file for insolvency within the statutory deadlines. This is because the obligation to file for insolvency has been in full force again since the turn of the year 2023/2024.