Thousands of businesses and self-employed individuals in Saxony repaid approximately €105 million in COVID-19 emergency aid during the past year, according to a response from the Ministry of Economic Affairs to a parliamentary inquiry by BSW state parliament member Jens Hentschel-Thöricht. The state government actively pursued the recovery of these funds, issuing around 31,100 repayment notices in 2025 – a significant increase from the roughly 1,200 notices issued in the prior year.
Easing Repayment Terms
Acknowledging concerns raised by businesses, authorities implemented more flexible repayment options during the summer months. These included an interest-free grace period of six months and the availability of installment plans. The Ministry reports that, following the introduction of these measures, 3,100 requests for repayment period extensions were received, with 2,200 of those applications approved as of the latest data.
Hentschel-Thöricht expressed strong criticism of the repayment demands, arguing they pose a substantial risk to the viability of many small businesses. “What was initially presented as swift, uncomplicated assistance during an unprecedented crisis is now being reclaimed years later, creating financial hardship – particularly for those businesses that have yet to fully recover economically,” he stated. He has called for a halt to all further repayments and enforcement actions.
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