07.04.2020
On Wednesday, 25 March 2020, the German Bundestag passed the supplementary budget while easing the debt brake. The Economic Stabilisation Fund now has EUR 600,000 million available for large companies; the immediate relief package for micro enterprises and self-employed persons without employees provides for EUR 50,000 million in grants alone. Since Wednesday, 25 March 2020, 9 a.m., applications for public grants can also be submitted to the business promotion bank of the federal state of Brandenburg, ILB. Berlin intends to open its Immediate Relief Package II (Soforthilfe-Paket II) for applications next Friday, 27 March 2020. The Immediate Relief Package I (Soforthilfe-Paket I) programme has already started. We provide an overview of financial support opportunities, applications and conditions that can provide short-term liquidity to Berlin and Brandenburg entrepreneurs.
The type and amount of immediate relief measures available (grant, one-off payment or loan) depends on the size of the enterprise to start with. While for small business owners (Kleinunternehmer), self-employed persons without employees (Soloselbständige) and freelancers (Freiberufler) the aim is rather to provide them with fresh money in the short term through one-off payments, bridging loans and other loans serve to cover liquidity needs of large companies for the medium term. Small and medium-sized enterprises basically have both options. In the context of both the bridging loans and the grants, it also depends on whether the company has been established on the market already for several years or whether it has just been founded.
Anton Spinty
Senior Associate
Berlin
anton.spinty@luther-lawfirm.com
+49 30 52133 11180