Special financial aid for small businesses in Vienna

 

The Corona virus turned very quickly from “it is just like the flu” into a worldwide health and economic crisis.

Although it will affect both big and small businesses, the latter are more vulnerable. Moreover, their options for recovery are limited.

The Austrian government has been proactive and quick to support business owners and their employees across the country by setting up a 4 billion Euros crisis management fund. In addition to that, the city of Vienna and the Vienna branch of the Chamber of commerce are making 10 million Euros available particularly to the sole proprietors and small businesses (with no more than 10 employees) based in the city.

The financial aid can be used either for rent subsidy or to compensate for the loss of revenue, caused by the Covid-19 crisis. Applications can be submitted already from April 1st.

To help our fellow entrepreneurs survive the situations, we’ve prepared a summary of the requirements and the most important information about financial aid in English.

Covid_19 Sonderförderung – Covid_19 Special aid

 

Purpose

To provide financial support to members of the Vienna Chamber of Commerce whose business was affected by the Corona virus pandemic. The aid should uphold normal business activities.

Type of aid

Non-repayable

Eligibility of the applicants

The applicants must meet ALL 3 requirements

  • Member of the Vienna Chamber of Commerce
  • Standing trading license for at least 2 years
  • Maximum 10 employees (full-time equivalent

Eligibility criteria

There has to be an economic emergency caused by the Corona virus pandemic. In any case, there is an economic emergency if:

  • There is a considerable monthly drop in turnover in the amount of at least 50% or
  • There is a solid monthly drop in turnover in the amount of at least 75%

 

Scope of the aid

  1. Non-repayable rent subsidy when there is a turnover loss from 50 % to 74%
  • For home-based businesses up to 100 euros/month
  • For rented properties up to 600 euros/month
  1. Non-repayable loss compensation when there is a turnover loss from 75 %
  • Max 1000 euros/month

 

The loss of turnover must have appeared between March 1st, 2020, and July 31st, 2020. Applications can be submitted from April 1st, 2020, until December 31s, 2020.

Needless to say, if you decide to apply for the aid you need to be able to prove not only the link between the loss of turnover and the pandemic but also that you could have made the turnover you are claiming to have lost. Sadly, in times of crisis, fraudulent activities thrive. This is why applicants should provide the following documentation:

  • Current income tax assessment
  • Current income tax prepayment
  • Bank account balance lists
  • The most recent annual financial statement
  • The most recent revenue reports
  • The monthly revenue reports for the current and the last year
  • The last rental payment (for the rent subsidy)

It is important to note that applicants are not entitled to the special aid and decisions will be made on a case by case basis.

You can download the application form here and send it together with above mentioned documents to

Wirtschaftskammer Wien

Wirtschaftsservice

Straße der Wiener Wirtschaft 1 | 1020 Wien

Email: notlagenfonds@wkw.at

 

While we are thankful that the city of Vienna and the Vienna Chambers of Commerce were quick to set up this fund, we can’t help but notice it only addresses older businesses.

Over the last decade, Vienna has been trying to become the start-up capital of Europe. Many steps were taken to encourage entrepreneurs to bring their ideas exactly here. Despite those efforts, Vienna is still not even among the top 10 of the best European cities to start a business.

Earlier this year the newly formed government announced its a start-up program. Becoming start-up friendly state is one of their top priorities. Let’s hope this is still important in the current situation.

That being said, I would also like to express my gratitude towards the thousands of front-liners who are getting us through this unprecedented situation. Their hard work is keeping the country we all love and chose as our home from collapsing.

We will stay on top of the newest developments that concern sole proprietors, freelancers and small businesses in Austria. Building a supportive community is a top priority for us!

Use the comment section below and tell us how the pandemic affected your business and how you are planning to minimize the damage.

Stay home and stay healthy!