Coronavirus: Financial aid for artists and freelancers

March 24, 2020

By RA Till Heinrich

In my articles on Corona: First aid to protect your business, Part 1 und  Corona: First aid to protect your business, Part 2 I have already talked about the different possibilities of financial support and contractual options. Here I would like to go into some of the existing aid offers in more detail: 

Financial aid from the German Federal Government

The financial aid decided so far (in addition to the tax relief) essentially consists of expanding the possibilities for so-called KfW loans, i.e. loans through your house bank, which are covered by the KfW.

In this context, the Federal Government of Germany has set up various support programmes for the respective types and sizes of companies, which consist of loans through the KfW Bank.

These loans must be applied for through the respective house bank or another bank. Together with this bank, the concrete conditions are then determined and the best financing for the respective company is sought. This has on the one hand the advantage that the clerks possibly already know you, on the other hand also additional costs are connected with it (the house bank computes also fees and interest), which do not appear first in the offers of the Federal Government.

If you want to take advantage of these offers, you must be aware that you will have to pay back the loan with interest. In addition, loans are also not issued without securities. In many cases you have to be personally liable for it. You should always bear this in mind.

  • Loans at relatively good conditions
  • quick liquidity
  • Cons

  • time-consuming application via the house bank with various proof obligations
  • personal or expensive liability for repayment
  • after the crisis, you have to repay the loan plus interest, which can often lead to liquidity problems later

Loans from the Land of Berlin

In addition to the support measures of the federal government, Berlin has also set up a special programme for Berlin small businesses, artists and freelancers.

The Investitionsbank Berlin is centrally responsible for financial aid in Berlin. It already has the following financing offers (as of 23.03.2020).

Rettungshilfe Corona
The "Rettungshilfe Corona-Programm" was developed for existing small and medium-sized enterprises based in Berlin, which have been in existence for at least 3 years (e.g. retail, gastronomy, accommodation and consumer-oriented services such as clubs).

The programme offers an interest-free loan of up to EUR 0.5 million and a term of 6 months. The loan can only be used to finance operating resources. Operating resources are all expenses that are necessary for current business operations (e.g. cost of goods sold, consumables, salaries), i.e. the running costs of a company.

The prerequisite for granting the loan is that the liquidity bottleneck was caused by the corona pandemic, mean the company was doing well before the crisis.

The contractual prerequisite for the granting of a loan is the personal liability of the applicant in the form of a directly enforceable guarantee for the amount of the loan. This offer is therefore also dependent on personal liability, which must always be carefully checked.

Grants for artists and freelancers

Various state governments such as Berlin, Brandenburg or NRW have announced more concrete support measures in the form of non-repayable funds. As soon as we have concrete packages here, we will inform you about them.

What can we do for you?

All of the funding offers from the federal and state governments have in common that they are costly to apply for and thus present major hurdles, especially for non-German-speaking entrepreneurs.

Take advantage of our expertise in working with foreign entrepreneurs. We will be happy to support you in finding and applying for the ideal assistance for you



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