Corona Emergency Aid

With the corona aid for start-ups, the State of Berlin supports young companies during the corona crisis. A total of 140 million euros are available for the program; 100 million euros come from funds of the Kreditanstalt für Wiederaufbau (KfW) and 40 million euros from funds of the Investitionsbank Berlin (IBB).

Eligible for application are start-ups and small and medium-sized enterprises in Berlin that were founded before 11.03.2020 and were not in financial difficulty before 31.12.2019. Furthermore, the companies must not be older than seven years.

The programme pays out liquidity support of up to 800,000 euros to young companies. The federal government takes over 70 percent of the risk, Berlin takes over 30 percent of the risk. The program offers various financing options: the assistance can be applied via the IBB Beteiligungsgesellschaft mbH or through private venture capitalists (intermediaries). Both variants involve the granting of open participations, dormant holdings and convertible loans, in which initial loans can only be converted into a participation at a later date. Thus, the start-up has the choice: the loan can be repaid within two years or transferred to a longer-term financing partnership. The funds can be used to support existing or new equity investments. The intermediaries receive the refinancing funds from IBB interest-free over a period of 10 years. Further financing options are planned from mid-August. 

Information of the IBB about corona help for start-ups can be found here. In addition, there is information in the recording of the Berlin Partner Townhall Call of 29.07.2020 on corona aid for start-ups.

Further information is available from the Berlin funding agencies by phone and on their websites:
IBB-Hotline: 030 / 2125-4747 (www.ibb.de)
Visit-Hotline: 030 / 264748-886 (about.visitBerlin.de)
 

The „Überbrückungshilfe“ is a federal program with a total volume of 25 billion euros that provides grants to companies in every sector for the months of June, July and August 2020. The application period runs from 10 July to 30 September 2020.

Small and medium-sized enterprises, solo self-employed persons, self-employed persons in the liberal professions in their main occupation as well as non-profit organisations that are economically active on the market on a permanent basis are eligible to apply. In addition, the program assumes an average drop in turnover of at least 60 percent in the months of April and May 2020 compared to the same months of the previous year. For companies founded between June 1, 2019 and October 31, 2019, the slump in turnover is compared with the months December 2019 to February 2020.

Not eligible to apply is who:

- is not registered with a German tax office.
- does not have a domestic permanent establishment.
- was in economic difficulties as of 31st of December 2019.
- was founded after 31st of October 2019
- is a public enterprise.
- has access to the Economic Stabilisation Fund.
- is a freelancer on a sideline basis.
- has an annual turnover of at least 750 million euros.
 

The “Überbrückungshilfe“ can be paid off for a maximum of three months (June, July, August). The exact amount of the subsidy is calculated as follows on the basis of the slump in revenue in the months of April, May 2019.

•    In the event of a slump in revenue of up to 70 percent: reimbursement of 80 percent of the eligible fixed costs.
•    In the event of a slump in revenue of between 70 and 50 percent: reimbursement of 50 percent of the eligible fixed costs
•    In the event of a slump in revenue of between 40 and 50 percent: reimbursement of 40 percent of eligible fixed costs. 

The calculation is made for each month individually. The maximum subsidy amount per month is 50,000 euros for companies, 3,000 euros for companies with up to five employees and 5,000 euros for companies with up to ten employees.
 

The IHK offers an online calculator that determines the decline in turnover and thus tells you whether the application is useful for you. The information provided by the calculator is not legally binding.

Eligible costs include the following:

1.    Commercial rents and leases and domestic workspace, if these were already tax deductible in 2019.
2.    Business rental costs for vehicles and machinery 
3.    Interest expenses for credits and loans (no repayment rate)
4.    Share of financing costs of leasing rates
5.    Expenditure on necessary servicing, maintenance or storage of fixed assets and rented or leased assets, including IT
6.    Expenditure on electricity, water, heating, cleaning and hygiene measures
7.    Property taxes
8.    Operating licence fees
9.    Insurance, subscriptions and other fixed expenses
10.    Costs for tax consultants, auditors or sworn auditors incurred in connection with the application for Corona “Überbrückungshilfe“
11.    Costs for trainees
12.    Personnel costs [Note: Personnel costs are taken into account at a flat rate of 10 percent of the fixed costs in points 1 to 10 of this table].
13.    Commissions refunded or not paid to travel agents or margins for tour operators for package tours which are
•    booked before 18 March 2020, 
•    cancelled since 18 March 2020 in connection with Corona-related travel warnings of the Federal Foreign Office or domestic German travel bans or temporary border closures (withdrawal from travel contract) 
and
•    which would have been taken up by travellers by 31 August 2020.
 

No, private costs such as rent, health insurance or salaries for entrepreneurs are not eligible. For these costs, there is a simplified access to basic provision until 30 September 2020.

The application is made with the help of a tax consultant, auditor or licensed accountant. The auditor calculates the slump in turnover before the application is submitted and subsequently makes a final statement of the actual slump in turnover.

Examiners can be found here, for example:
• Tax consultant search service
• Professional register for auditors/sworn auditors
• Tax consultant search service of the German Tax Association (DStV)

The application deadline is 31 August 2020 and the payment deadline is 30 November 2020. The application can only be submitted once.
Retroactive applications for the months of June, July and August are possible, but not later than 30 September 2020.
 

The application can only be made online via tax consultants, auditors or certified accountants: To the application form.

Here you can find more information about the “Überbrückungshilfe“.

From March 27th to April 1st (12:00), applications for state subsidies (blanked amount of 5,000 €) and grants for operating costs from federal funds could be submitted via the program Soforthilfe II. Since April 6th, only federal funds can be applied for via the program Soforthilfe II.

An overview of both grants with information on eligibility, application period and possible uses of the grants can be found here.

You can find the new application for Emergency Aid II based on federal funds here. 

• For companies: General company data: Legal form*, name*, date of foundation*, website, registration number (e.g. commercial register number), branch of industry*, company address*, number of employees* (full-time equivalents, excl. trainees and 450€ employees)  

• For solo self-employed and freelancers: details of the owner/legal representative: Name*, contact* (telephone and e-mail), tax ID*, identity card or passport* (the last five digits of the ID number)

• Bank details of the company or the self-employed person: Account holder*, International Bank Account Number (IBAN)* A German account must be specified here!

* This information is mandatory.

The Investitionsbank Berlin (IBB) is responsible for implementing, auditing and distributing the money on behalf of the Land of Berlin. The application for Soforthilfe II can only be made online. It is not necessary to log into the IBB's customer portal. Applications by mail are not permitted. Only one application is necessary to apply for state and federal funding.

The application generally refers to solo self-employed and freelancers. This also includes actresses, dancers, artists, musicians, performers, museum guides and all those who earn their living with art and culture. So, you are explicitly entitled to apply! And even small and micro-enterprises with up to ten employees or up to five employees (see under "How much money will you get?") can submit an application.

Important: The company headquarters or self-employment must be registered in Berlin. However, citizenship is irrelevant for the application.

• Freelancers and micro-enterprises with up to five employees (full-time equivalents possible) can apply for 9,000 € (federal funding) per application. 

• Small companies with more than five and up to ten employees (full-time equivalents possible) can submit up to 15,000 € (federal funding) per application.

Part-time employees can be converted into full-time employees (full-time equivalents). Trainees and employees on a 450-euro basis can also be converted into full-time employees.

Fee-based employees do not count as employed.

It is important to know, if you recieved the federal fund, the state fund or both of them.

The Corona grant from state funds is intendet to cover the cost of living, entrepreneur's salary and current personal and financial expenses.

The Corona grant from federal funds can be used for operating costs and commercial material and financial expenses such as:

- commercial rents
- Lease expenses
- business telecommunications expenses
- running costs for providers, domains, webspaces etc. and maintenance costs
- staff costs for employees, if not covered by the short-time working allowance (Since 20th of April 2020, salaries of employees may no longer be financed from federal funds.)

Managing director salaries, private withdrawals or the compensation of loss of turnover and fees for personal living expenses, health insurance contributions etc. are not included. On the other hand, the "social protection package" adopted on 27th March 2020 opens up access to basic provision for six months at much easier conditions.

In the application for the Soforthilfe of 5,000 € you declare your economic plight and affirm in lieu of oath that all information given is true to the best of your knowledge and belief. You do not have to submit any receipts or documents. As outlined, we are all in crisis, honesty strengthens solidarity. As already mentioned above, it can be checked retrospectively. Accordingly, you should be able to make your existentially threatening state of emergency credible retrospectively. It is therefore advisable to keep appropriate evidence for later verification (such as contract cancellations, email communication regarding cancelled performances or official orders etc.).

The Corona grant (Soforthilfe II) from federal and Land funds (paid out in Berlin by the IBB) is to be recorded as operating income in the determination of profits. This subsidy is taken into account in the assessment of income or corporation tax with an effect on profits. This only has an effect when the tax return for 2020 has to be submitted, i.e. next year at the earliest. Only if a positive profit was generated in 2020 will the individual tax rate be due on the subsidy.

Once you have reached the "Thank you for your application" section on the page, your application has been successfully received. You should receive a confirmation e-mail with your application ID within a day. If this is not the case or if there are problems, please contact the IBB via the contact form.

The IBB endeavours to transfer the money within three days of the application. However, there have also been reports of transfers within a few hours after successful application.

You can now contact the IBB via the following contact form.

Here you find the FAQ as of 31 March. The answers are not displayed in the archive version. The answers can be displayed using the browser's developer tool.

Further FAQs on the Soforthilfe II Berlin: 

information from Berliner Kultursenat

infrormation from IBB

The Emergency Aid IV is aimed at cultural and media companies affected by the Corona crisis, usually with more than 10 employees. These companies can apply for grants of up to EUR 25,000 to overcome an economic situation that threatens their existence. In justified exceptional cases even up to EUR 500,000 can be applied for. All further information can be found here.

While Emergency Aid II is aimed at self-employed persons and micro-enterprises, Emergency Aid IV is intended for small to medium-sized cultural and media enterprises. All further information can be found here.

You can submit the application from Monday, 11 May. The application period runs until Friday, May 15. 

You can find the FAQ here. 

We are partners of the Senate Department for Culture and Europe and the IBB and support the information and consulting process. We are available for questions that go beyond the FAQ catalogue via the IBB contact form. On the one hand, we answer your questions about the application process. On the other hand, we collect questions that are still missing in the IBB's FAQ and forward them for professional answers - so that they can be included in the IBB's FAQ. In addition, we inform the individual branches and sectors of the culture and creative industries about our networks.