Coronavirus relief funds totalling 358 million euros need to be paid back - Coronavirus relief funds amounting to 358 million euros need to be repaid
Small businesses in Hamburg are grappling with repayment claims for Coronavirus aid as some funds they received under government support programs are being reviewed for potential misuse or ineligibility. According to a report by the Hamburg newspaper, "Hamburger Abendblatt", these businesses owe a total of 10 million euros in repayments due to aid claims as of mid-2025[1].
During the pandemic, the German government implemented extensive aid packages, including grants and loans, to help businesses. However, complexities and changing eligibility rules led to some businesses receiving aid improperly or requiring repayments later. In Hamburg, small businesses were encouraged to apply for this aid, but subsequent audits or reviews identified that some companies either did not meet the criteria or misused funds, prompting authorities to request repayments.
The Left Party, a political group in Hamburg, has been critical of the burden on small businesses due to the repayment claims. Xenija Melnik, the economic spokeswoman of the Left Party, continues to state that the stringent repayment claims are the wrong approach[1].
The economic authority predicts that Hamburg will refund applicants a total of 280 million euros in the case of bridging aid. However, they estimate the total repayment claims at around 200 million euros for bridging aid, suggesting that Hamburg will repay more money than it will demand[1]. As of now, the city has repaid 48 million euros to applicants of bridging aid.
It's important to note that unlike immediate aid, repayments to applicants of bridging aid are possible. The debt is owed by approximately 2,000 recipients. The bridging aid for businesses of all sizes and the restart aid, which were aimed at freelancers and smaller businesses, followed the immediate aid at the beginning of the pandemic in 2020.
The city of Hamburg still owes 358 million euros from Corona economic aid. The settlement of immediate aid in Hamburg is already complete, and there were no repayments to applicants. Around 3.8 billion euros in Corona aid has been paid out in Hamburg.
This reflects an ongoing challenge in balancing urgent relief delivery with post-aid accountability in pandemic-related support schemes. The Left Party's stance on the repayment claims for bridging aid remains critical, as they believe it burdens small businesses.
[1] Source: Hamburger Abendblatt
- The employment policies of small businesses in Hamburg, who are struggling with repayment claims for Coronavirus aid, might need to be reviewed in light of potential misuse or ineligibility of funds received under government support programs.
- The finance ministry should consider revising the community policy regarding Coronavirus aid repayments, particularly for small businesses in Hamburg, as the stringent repayment claims are causing a significant burden and may hinder their ability to recover from the economic effects of the pandemic.
