More corona aid for start-ups and SMEs

Corona Recovery Fonds increased to EUR 800,000 maximum - 50 recipients in Hamburg so far
22 October 2020
Euro notes

The Ministry of Economics in Hamburg agreed Wednesday (October 14, 2020) to increase corona aid for start-ups and SMEs to EUR 800,000 maximum. About 50 companies have received the funding so far. The venture capital grants are issued by the IFB Innovationsstarter GmbH as part of the Corona Recovery Fund (CRF)

Up to EUR 50 million in federal and state funds

CRF targets innovative start-ups and growth-orientated SMEs headquartered in Hamburg or whose main premises is in the city. IFB Innovationsstarter GmbH, a subsidiary of the Hamburgische Investitions- und Förderbank (IFB Hamburg), provides exit-orientated start-ups with up to EUR 500,000 in silent partnerships. Non-exit-orientated start-ups and other SMEs can avail of funding in the form of silent partnerships through the Beteiligungsgesellschaft Hamburg (BTG Hamburg). The maximum grant has  been increased from EUR 250,000 to 800,000 euros. Around EUR 50 million is available in federal and state funds.

Stabilisation Fund ready 

Andreas Dressel, Senator of Finance, said: "The Corona Recovery Fund is an important part of Hamburg's wide-ranging protective shield for companies and institutions particularly badly hit by the corona crisis." The Hamburg Stabilisation Fund will probably be launched in the next few weeks, he added. 

Great and wide-ranging demand

The approximately 50 companies supported by CRF include Walberg Urban Electrics, a Hamburg-based company specializing in e-scooters. Demand for e-mobility soared following their approval in 2019. However, this "dynamic company development" almost came to a standstill when the corona crisis hit in March this year. Florian Walberg, CEO of Walberg Urban Electrics, commented: "If an entire customer group is in lockdown and falls into arrears, we are also affected and this in turn hits our suppliers. Fortunately, the government has created mechanisms to cushion the impact in an uncomplicated manner. This back-up will allow us to emerge from the crisis even stronger." 
rr/sb/pb