Berlin – Concerns about the new virus variant Omikron are growing, also in all economic sectors: Many fear further effects on their business and even worse consequences for the catering and retail trade. In addition, there are unexpected repayment claims from Corona emergency aid and previously deferred tax payments, which will be due in 2022. What can Berlin companies expect in the next few weeks and months? One thing is certain: after many companies have barely recovered from past lockdowns and the Christmas business has also lagged far behind expectations, lockdown and repayments would be another blow.
There is great unrest in Berlin. At the request of the Berliner Zeitung, the Chamber of Commerce and Industry (IHK) speaks of increasing uncertainties every day – mainly because of the Omikron variant. If there should actually be a lockdown, some companies also face insolvency. After all, the pandemic had a significant impact on companies in the sectors particularly affected, including in terms of their equity base.
The effects of this uncertainty are already noticeable in the Berlin economy: According to the Chamber of Industry and Commerce, financially weakened companies are investing less, hiring less and jobs are being lost. It is therefore an important signal “that the Federal Ministry of Finance has continued the tax relief for companies in the new year”.
Surprising repayment demands from the countries in the middle of the corona wave
Nevertheless, there are concerns: In the middle of the current Corona wave, the Central Association of German Crafts (ZDH) reports on the request of the Berliner Zeitung of surprising repayment claims from several federal states to craft businesses. This is emergency aid from the federal government from spring 2020, “which was explicitly excluded from repayment in the communication of the responsible federal ministers”. These demands hit the companies at an economically very difficult point in time and in some cases endangered their existence. According to research by the Handelsblatt, the federal states are demanding a return of 287.8 million euros from small businesses and the self-employed.
Habeck demands more patience
According to the ZDH, further claims for repayment of the aid from the months of April to June 2020 are currently being examined in the affected countries. In some cases, there was still a lockdown at this point. However, hairdressers, for example, were also allowed to reopen at times and sometimes have to report their income for this period. At the ZDH, this leads to the fear that unexpected repayment claims will arise again. This was already the case again and again in summer and autumn. So far, the ZDH is aware of such cases from Saarland, Schleswig-Holstein, Rhineland-Palatinate and North Rhine-Westphalia.
Economics minister Robert Habeck (Greens) now called on the federal states to be more patient with repayment demands and in a letter to the federal states’s economics ministers spoke out in favor of a moratorium.
Do you have to pay back in Berlin too?
In Berlin, the Investitionsbank Berlin (IBB) paid out the bridging aid, a total of 1.8 billion. Less than two percent of the Corona aid disbursed were loans that definitely have to be repaid. All of them come from the only loan program of the numerous Corona aid, the so-called Corona liquidity aid. The IBB informed the Berliner Zeitung on request that these loans were due between April and December. A spokeswoman said: “However, we are in regular contact with our funding recipients and are negotiating the possibilities of a prolongation if the loan cannot be repaid.”
Companies can take advantage of bridging assistance until March
The remaining Corona aid does not have to be repaid – provided it was needed. The IBB told the Berliner Zeitung that its use has been checked since mid-2020. This is necessary for correct allocation of the corona aid. “Should repayments be necessary due to inspections and these lead to financial bottlenecks, the IBB will find ways to agree on installment payments in coordination with the state of Berlin,” said a spokesman on Wednesday morning. In Berlin, 38,000 recipients of the aid have already repaid a total of 270 million euros.
Companies can take advantage of bridging assistance until March. Since December 7th, it has also been decided that taxes due until the end of January can be deferred under simplified conditions. A corresponding application to the tax office is required for this.
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