Coronavirus: Fixed Cost Subsidy - Application from 20 May

The non-repayable fixed cost subsidy is intended for companies that are experiencing or have experienced revenue losses as a result of the coronavirus crisis, to directly cover fixed costs.

The fixed-cost subsidy is tiered and depends on the company’s loss of turnover (minimum loss of 40%) and can amount to up to 75 %.

If fixed costs exceed €2,000 within 3 months, the federal government will pay:

• 40–60 % Failure: 25 % Replacement output
• 60–80 % Failure: 50 % Replacement output
• 80–100 % Failure: 75 % Replacement performance

The key points

• Applications from May 20th FinanzOnline.
• Period: 3 months (15th March to 15th September)
• Fixed costs examples: commercial property rents and leases, business insurance premiums, interest expenses, the financing cost portion of lease payments, expenses for other contractually necessary business payments not related to personnel, business royalties, payments for electricity/gas/telecommunications, personnel costs incurred for processing cancellations
• Payment in three instalments
  • The first third can be applied for from 20 May.
  • A further third can be applied for from 19 August.
  • The remainder can be applied for from 19 November.
• Prerequisites: The place.
  During the coronavirus crisis in 2020 (from 16 March 2020 until the end of the COVID-19 measures, but no later than 15 September 2020), the company suffers a loss of turnover of at least 40%, caused by the spread of COVID-19
  Businesses that were healthy before the Covid-19 crisis.
• Obligations: Maintain jobs in Austria or the company must have taken reasonable measures to reduce the fixed costs covered by the fixed cost subsidy (duty to mitigate damages by ex-ante consideration).

Source and further information
https://www.bmf.gv.at/public/top-themen/corona-hilfspaket-faq.html#Corona-Hilfsfonds
https://www.wko.at/service/faq-corona-hilfs-fonds.html#heading_Zuschuesse

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