Hamburg's protective shield remains in place
The senate agreed Wednesday (October 28, 2020) on additional corona aid thereby extending Hamburg’s protective shield, originally due to expire on December 31, 2020, to next year. The volume of the Hamburg Stabilization Fund (HSF) with around EUR 1 billion will seal another gap in funding for SMEs from November. The latest information can be found on a new website.
Corona protective shield extended to 2021
"We continue to do everything in our power to help companies and jobs in our city. Our budget, which has just been approved by the senate, sets the right framework conditions. We will still have the financial clout to tackle the crisis vigorously," said Andreas Dressel, Senator for Finance.
The budget, passed in mid-October with EU 3 billion in corona emergency loans, allows the senate to maintain the corona protective shield in 2021 and 2022. Apart from effective economic measures in the Hamburg Economic Stabilization Program (HWSP), provisions have also been made for more anti-corona measures and for public companies. After liquidity of around EUR 5 billion lasting until autumn 2020, around EUR 1 billion in aid and economic stimulus measures has been earmarked for 2021/2022.
Hamburg is taking the following measures to stem the impact of the corona crisis:
- Around EUR 900 million for Hamburg Economic Stabilization Program (HWSP) in the 2021/2022 budget. Certain urban measures are being brought forward for greater economic impetus.
- Implementing federal interim aid, which is being extended until mid 2021, and expanded to solo self-employed persons in particular.
- Sealing the gap in funds for (larger) mid-sized companies. The Hamburg Stabilization Fund (HSF) with a volume of around EUR 1 billion will launch in November following a decision by Hamburg's parliament in October.
- Targeted aid for SMEs: Corona Recovery Fund (CRF) expanded to meet the needs of SMEs. Funds increased to EUR 800,000.
- IFB's corona loans to be extended. Hamburg Liquidity Loans to continue in 2021.
- Using the corona crisis to boost digitalisation: Hamburg Digital Bonus to launch in Q1 of 2021.
- Continuing and expanding effective tax relief, which has amounted to over EUR 4 billion in 2020 so far, to 2021.
- Continuing and expanding subsidised fees for tradespeople e.g. for special uses to 2021.
- Updating assistance for commercial tenants (deferrals and rent adjustments) in urban properties.
- Strengthening Hamburg as a centre of logistics: reform of the turnover tax on imports to be undertaken swiftly.
- Addressing sustainable transformation of business and industry immediately, innovative components in economic stabilization programme.
- Securing Hamburg's position as the world's third largest civil aviation centre as part of the economic stabilization programme.
- Targeted aid for social enterprises and non-profit organisations (up to EUR 800,000 in funds respectively)
- Aid for Hamburg’s cultural institutions and event planners, support for artists and creative people.
Investment and Development Bank (IFB)
The Hamburgische Investitions- und Förderbank backs the development of housing, commerce, environmental protection and innovation projects. IFB Hamburg is the main point of contact for individuals, companies and institutions and advises about all means of funding in Hamburg, and those of the German government and the EU.