Hesse Eases Repayment Regulations for COVID-19 Emergency Aid

Hesse has increased the threshold for minor repayments related to COVID-19 emergency aid from EUR500 to EUR1,000. This adjustment means that individuals who received support of up to EUR1,000 will not be required to participate in the repayment process. The state's Economic Minister emphasized that this change aims to alleviate the administrative burden on many businesses in Hesse, which had been subjected to complex verification processes.

The minister noted that no other federal state in Germany has set such a high limit. He acknowledged the bureaucratic challenges introduced by the verification procedures, which had caused uncertainty among businesses and freelancers. Hesse had advocated for a simplified process to avoid these complications, but ultimately, the Federal Ministry of Economics mandated the repayment procedure following a review by the Federal Audit Office.

Currently, the Government Presidium in Kassel is conducting a comprehensive review of the COVID-19 emergency aid disbursed to businesses and freelancers. Recipients are required to report via an online portal whether their aid exceeded their anticipated liquidity shortfall from 2020. Any discrepancies must be repaid. From March to June 2020, nearly EUR960 million in emergency aid was distributed.

Out of approximately 90,000 businesses contacted throughout Hesse, over 39,000 have submitted their feedback to the ministry. So far, around 13,330 applications have been processed, with more than 5,400 recipients allowed to retain their full aid amounts. However, approximately 7,925 businesses are facing partial or full repayment of the funds received.