- The agency is recalling about one in three Corona emergency aid.
The Hamburg Investment and Development Bank (IFB) has recalled more than every third approved corona emergency aid in Hamburg, either partially or in full. This was revealed in a response from the Senate to a minor inquiry by the CDU faction. For around 22,400 applications, the IFB has initiated a recall - around 38.5 percent. The recalls amount to approximately 180 million euros. The IFB is demanding the money back because the applicant's payment difficulties were only partially or not present.
Most applicants have since settled the recall, as further stated in the response. However, in about 5,800 cases, payments are still pending. The government stated that most recalls have been issued. More could be added due to ongoing investigations. The payment deadline is four weeks after receiving a notice.
Wiese: City must weigh
The economic policy spokesman of the CDU faction, Goetz Wiese, said that many freelancers and small business owners were having difficulties with repayment. According to the response, the IFB has concluded around 8,300 deferment agreements - effectively postponing payment. Additionally, the accounting authority 'Kasse Hamburg' has agreed on installment payments in approximately 1,600 cases.
It is correct that improperly received emergency aid must be repaid, Wiese told the German Press Agency. However, it harms public interest if self-employed individuals with functioning business models are driven into bankruptcy. "Here, I expect the city to weigh its handling of recalls," Wiese said.
Emergency aid was offered in 2020
During the corona pandemic, the state granted several economic aid packages. After the pandemic began, the federal government introduced emergency aid to secure the existence of small businesses and freelancers during the first lockdown. The emergency aid could be applied for from March to May 2020. According to the Federal Ministry of Economics, around 13.6 billion euros were paid out on approximately 1.7 million applications. The ministry recently estimated that around five billion euros were paid out incorrectly.
The federal states had their own procedures for disbursement. In Hamburg, the IFB is responsible. Hamburg, like other federal states, topped up the aid. In total, around 550 million euros in corona emergency aid were paid out in Hamburg, as stated in the response.
No industry tracking
The industry of the applicants was not tracked when the recalls were processed. However, this was the case when the applications were granted. "The effort of preparing the data does not stand in the way of any control effect," it says in the Senate's response. Wiese described this as incomprehensible. "Some industries were and are clearly more affected than others," he said. Better data collection is important to understand the situation of entrepreneurs more quickly, among other things.
The increasing number of Coronavirus cases globally has led to stricter regulations and restrictions, making it harder for businesses to operate. Despite the Coronavirus-related emergency aid offered in 2020 to support small businesses and freelancers, Goetz Wiese, the economic policy spokesman of the CDU faction, has raised concerns about the high number of recalls of approved aid by the Hamburg Investment and Development Bank (IFB). He urged the city to consider its approach to recalls, fearing that it could drive some businesses into bankruptcy.
