Hamburg constructing defensive barrier: a ten-point plan
In a bid to support businesses and cultural institutions grappling with the economic hardships caused by the ongoing coronavirus pandemic, Hamburg's Senate has unveiled a ten-point program as a protective shield. Finance Senator Dr. Andreas Dressel announced this initiative.
The program aims to provide swift and unbureaucratic aid to small and medium-sized businesses, freelancers, private operators of cultural facilities, and sports clubs. Here's a breakdown of the key measures:
- Culture Aid Package: The Authority for Culture and Media (BKM) is tying up a €25 million culture aid package to compensate for economic hardship resulting from measures to implement the Covid-19 ordinances.
- Hamburg Corona Emergency Aid (HCA): The Senate is introducing an emergency aid program for small and medium-sized businesses and freelancers who are directly affected by the city's corona ordinances and are at risk of immediate existential crisis or liquidity shortages.
- Working Capital Financing: Working capital financing is now possible for existing companies with an 80% counter-guarantee, an increase from the previous 60%.
- Rent Deferral for Tenants: Businesses and institutions that are commercial tenants in municipal properties and are affected by the current Corona general decrees can defer their rent for up to three months without interest.
- Increased Guarantee Limits: The guarantee maximum of the Hamburg Guarantee Community GmbH (BG) will be doubled from 1.25 million euros to 2.5 million euros.
- Hamburg Corona Shield: While the name of the person coordinating the Hamburg-specific measures for the 'Hamburg Corona Shield for businesses and institutions' remains unclear, the program aims to issue guarantees of up to 250,000 euros within its 'actual own competence,' enabling the BG to decide on the assumption of the guarantee within 72 hours.
- Emergency Fund: An emergency fund of two million euros is being set up to compensate for gaps not covered by other aid measures.
- Scaling the Aid: The Hamburg Corona Emergency Aid is to be scaled according to the number of employees and complement the federal emergency fund.
- Corona Moratorium for Tax Relief: The Corona Moratorium for tax relief has been coordinated between the federal and state governments, providing Hamburg tax offices with tools to overcome liquidity shortages through the temporary suspension of tax obligations until December 31, 2020.
- IFB Funding Module: The IFB will introduce a new funding module for urgently needed working capital for cultural institutions and sports clubs.
To seek further information about the Hamburg aid program, individuals can contact the Finance Authority at [email protected]. Additionally, Hamburg is expanding the possibility for deferrals and waivers of municipal fees for businesses, entrepreneurs, and other affected institutions.
Cultural institutions such as private theaters or music clubs are eligible for funding under the culture aid package. The city aims to be a good investor, client, and reliable contractual partner for the private economy by settling incoming invoices from suppliers not only upon maturity but immediately.
These measures are part of Hamburg's commitment to support its businesses and cultural institutions during these challenging times and help them navigate through the economic impact of the coronavirus pandemic.
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