Liquidity aid for Berlin companies: Plenty of room under the bailout package

The 100 million euro emergency aid program for Berlin companies in the energy crisis is little used. Economy Senator Schwarz: good sign.

There are subsidies for energy costs so cafes can continue to put their tables out Photo: picture alliance/dpa | Joerg Carstensen

BERLIN dpa | So far, Berlin companies have barely used the state program, which guarantees loans in the event of severe liquidity bottlenecks. The Finance Administration expects increased interest in the grant program, which is expected to begin in the new year. “Our immediate liquidity program with €100 million was the first nationwide. Berlin swiftly launched this rescue package to protect companies that were under serious threat,” said Economy Senator Stephan Schwarz (Independent) of the German Press Agency. “Applications totaling around six million have been received so far. EUR”.

In mid-October, the Senate decided on liquidity aid to support businesses, self-employed workers and freelancers who are running out of money due to rising energy costs and who are financially back against the wall. The fact that the funds have so far been underused is a good sign that gives him confidence, Schwarz said. Many companies are still waiting in the face of the imminent curb on energy prices and federal aid.

“The second step is now the subsidy program of Berlin with 200 million euros, which is intended to supplement the cash loan,” said the senator for economic affairs. It is aimed in particular at energy-intensive small and medium-sized enterprises particularly affected by the energy crisis. “I expect it will be used much more than the emergency liquidity program.”

The goal of the economic administration is that applications can be submitted at the beginning of the first quarter via the Investment Bank Berlin (IBB). “We are relatively far away, IBB experts are working on digital application programming,” the senator said. “It’s also about considering federal aid to avoid double funding.”

Does the company exist?

“We are in close contact with the IHK and the Chamber of Crafts, who have promised to support us in the application process,” said Schwarz. “For example, with some test phases in advance – does the company exist, what is the average share of energy costs in companies?”

Such help is also needed because IBB, like all development banks in Germany, is at its limit. “What your employees have been doing for many months under pressure is really cool.”

The investment bonus program with 10 million euros as part of the restart program for the post-pandemic period has been very well received. “For the first time, it was a direct grant of up to 35% of the investment,” Schwarz said. “The first fund is now exhausted, we want to extend the program from 2023 and enrich it with another 10 million euros”.