Hamburg Constructing Defensive Barrier: A Ten-Point Plan
Hamburg Senate Unveils Comprehensive Support Package for Businesses Impacted by Corona
In response to the ongoing COVID-19 pandemic, the Hamburg Senate has initiated a ten-point program dubbed the Hamburg Shield. This comprehensive package aims to support companies and institutions adversely affected by the Corona crisis.
The first building block of the measures is the HamburgKredit-Liquidity (HKL), designed to provide small and medium-sized enterprises (SMEs) with a loan volume of up to 250,000 euros each. The Hamburg Guarantee Community GmbH (BG) has doubled its maximum guarantee amount from 1.25 million euros to 2.5 million euros to facilitate this loan scheme.
The BG can grant guarantees of up to 250,000 euros within its own competence and decide on the assumption of the guarantee alone within 72 hours. This swift action is intended to alleviate the financial strain on SMEs during these challenging times.
Dr. Carsten Brosda, Senator for Culture and Media, has put together a package to help flexibly in emergencies beyond existing offers for affected cultural operations, artists, and solo self-employed individuals. An emergency fund of two million euros will be set up to compensate gaps not covered by other aid measures for artists registered as solo self-employed with the KSK and operating or having their main residence in Hamburg.
The Senate is launching an immediate aid program with the IFB for small and medium-sized businesses and freelancers, called Hamburg Corona Immediate Aid (HCS). The aid is based on the number of employees and will complement the federal emergency fund. Less than 10 employees will receive 5,000 €, 10-50 employees will receive 10,000 €, 51-250 employees will receive 25,000 €, and Solo-Self-Employed will receive 2,500 €.
To further support businesses, the city aims to simplify procurement procedures and defer its claims to strengthen the liquidity of companies affected by the general provisions. A corona fee circular allows for a deferral or waiver of municipal fees for businesses, entrepreneurs, and other affected institutions. Businesses and institutions that are commercial tenants in municipal properties can obtain an initial interest-free deferral of their rent for up to three months upon application.
Economics Senator Michael Westhagemann aims to find solutions for the smallest and smallest companies and wants to cushion the expected consequences of the Corona pandemic. The Corona deferral for tax relief has been coordinated between the federal government and the states, providing Hamburg tax offices with tools to overcome liquidity shortages. Working capital financing is now possible for existing companies with an 80% counter-guarantee (previously up to 60%).
The IFB will introduce a new funding module for urgently needed working capital for cultural institutions and sports clubs, which have previously only supported investments in the sports and culture sector. The upper limit of 35% working capital of the total obligation will be increased to 50%.
Andreas Dressel, the Finance Senator of Hamburg, is involved in initiating additional measures to the federal aid program to support those affected by Corona in the city. These measures are intended to provide much-needed relief to businesses and individuals during these challenging times.
