Berlin bolsters business protection measures
The city has set up a massive fund that is meant to prevent layoffs and protects workers and business owners from economic fallout
- March 19, 2020 19:30
- Anton Stoyanov
With the spread of the coronavirus affecting pretty much every part of the world, it is up to all levels of governance to assist in combating its effects. To that end, local authorities in Berlin have updated their crisis response strategy and have revealed their new approach to aiding those who are affected by the economic slowdown and downturn caused by the pandemic – namely business owners and their employees.
A three-step solution
Berlin authorities have been working hand-in-hand with federal and regional officials to develop a three-stage rapid response approach that would take the pressure off of businesses through funding, and thus prevent layoffs and potential bankruptcies.
The first stage of Berlin’s crisis response strategy is to immediately send aid to those companies who are directly impacted by the coronavirus crisis. The second stage is to prolong, expand and carry out these measures as long as it is necessary for the economy to stabilize. Finally, the local government is already working on its strategy for when the pandemic subsides and local businesses are in need of revitalization.
In terms of concrete measures, the German capital envisions the following:
- Paying for damages under the Infection Protection Act – losses of earning will be covered when events have been cancelled or personnel has been quarantined
- Tax relief for those companies struggling with liquidity
- Express guarantees – the guarantee bank is doubling its maximum to 2.5 million euros. Furthermore, the bank will be able to make express decisions on guarantees of up to 250,000 euros – independently and within 3 days of request submissions. Guarantees of up to 50 million euros will be handled by the federal government
- 100 million euros in liquidity aid – the already established Berlin liquidity fund has received a substantial boost and stands ready to support small and medium businesses. Local authorities are ready to provide another 100 million euros for an even greater expansion of the fund’s capabilities
By providing rapid and effective measures to tackle the crisis, the local government of Berlin proves to be a reliable partner to both citizens and businesses operating in the urban area.
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