Under the programme, Berlin will give out up to 500,000 euros per business, Source: Depositphotos

Berlin restarts Covid aid to support the cultural sector during the energy crisis

Berlin restarts Covid aid to support the cultural sector during the energy crisis

City officials believe that financial conditions will deteriorate in the coming winter months

Yesterday, Berlin authorities announced they will expand COVID-19 aid for cultural and media businesses for 2022 and 2023.  According to a statement by the city, the unique challenges this year has brought, such as the energy crisis, have led to many cash-flow bottlenecks and liquidity issues.

The city will offer businesses up to 500,000 euros in grants if they can prove they have financial issues. The grants will be paid in a three-month period until the end of 2023 under the tried and true procedure of the Perspektive Kultur programme.

Financial conditions are set to deteriorate

According to an official statement by Berlin authorities, the financial situation for many businesses, cultural or otherwise, is set to deteriorate in the coming months with the heating season and energy crisis kicking into full gear.

Additionally, officials point out that the effects of the pandemic are still a relevant factor to most businesses, whose projected bounce back for 2022 was hampered by inflation during the first half of the year.

The funding for the cultural sector will come through the Perspektive Kultur programme, round IV. City officials will reuse the regulations and practices developed for the programme in its 2020 - 2022 run when over 200 cultural and media companies received aid to a total of 42 million euros.

This means that businesses that were eligible to receive grants before will be eligible again, as well as those that can meet the requirements. One major point is that companies need to demonstrate an acute need for funds to overcome liquidity bottlenecks.

The programme will pay the money out in instalments in the span of three months un 2023, with a maximum subsidy of 500,000 euros.



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