Coronavirus: Help, information and contact details for businesses and workers in Bremen

Links, contact details and information on the help available from the state of Bremen and the federal government for companies that are in financial difficulties as a result of the coronavirus crisis.
If you are a business owner or freelancer looking for information about support for businesses, you will find advice here on all the support available, and how to access it.

Please note: These pages give you a rough overview of possible programs, help and contacts. Since the situation is constantly changing, we ask you to contact our international team for specific information and inquiries. You’ll find contact info further below (“Task Force”). We encourage you to write us via email, as many of the links and downloads are only available in German.
Emergency aid for small enterprises

The federal government has provided budget funds for all federal states of 50 billion euros for self-employed professionals, small companies and freelancers. The emergency aid aims to ensure the economic existence of the companies and the bridging of liquidity bottlenecks as a result of the Corona crisis. A maximum of 9,000 euros for companies with up to 5 employees and maximal 15,000 euros for companies with up to 10 employees will be paid out for a period of maximal 3 months. In the state of Bremen, the federal aid programme will be provided by BAB Bremer Aufbau Bank for Bremen-based companies and by BIS Bremerhavener Gesellschaft für Investitionsförderung und Stadtentwicklung mbH for companies in Bremerhaven.

A digitally supported application within the framework of the federal aid programme has been made available for companies with up to 10 employees on https://www.bab-bremen.de/bab/corona-soforthilfe.html.

The detailed eligibility conditions are available in German only: https://www.bab-bremen.de/sixcms/media.php/24/AusfuehrungsbestimmungenBundesprogrammCoronaBremen.pdf

Companies with more than 10 employees cannot use the Corona emergency aid programme of the federal government. For them, the state of Bremen has created the "Immediate Programme to Mitigate the Economic Impact of the Corona Crisis for Small Enterprises" (Corona - Immediate Aid II).

Eligible for application are companies with more than 10 and less than 50 employees (full-time equivalents) and up to 10 million euros annual turnover. The amount of the grant is up to 20,000 euros, depending on the amount of liquidity required.

The application for the state grant programme can be found on the application page of the Task Force.

Liquidity aids for self-employed professionals, freelancers and small companies with up to 10 employees
In case of liquidity bottlenecks as a result of the Corona crisis which threaten the company’s existence, the federal programme supports with an emergency aid within the framework of the ‘Federal Programme Emergency Aid Corona Bremen”. A maximum of 9,000 euros for companies with up to 5 employees and maximal 15,000 euros for companies with up to 10 employees will be paid out for a period of maximal 3 months. Since 2 April 2020, this emergency aid is exclusively implemented via the federal programme.

Applications that have already been submitted for the Bremen state grant programme will also be examined within the framework of the federal funding. An emergency aid already granted as Corona emergency aid of the state of Bremen will be fully credited against the federal funding. In this case it is not necessary to submit a new application, even if you have not yet received a decision.

Bremen-based companies, freelancers and self-employed professionals submit their application to BAB, Bremerhaven-based companies to BIS.

The application to BAB has exclusively to be made by means of the form which is provided online on https://bab.contingent.de/foyer/index.html and which has to be completed on the PC and subsequently be uploaded again together with the required attachments (do no send by E-Mail).

Additional required documents in electronic form as attachment:
  • Legible scanned copy of identity card (front and back) or
  • Legible scanned copy of passport plus current Meldebescheinigung (not older than 2 weeks)
Please note: Only fully completed application forms which have been uploaded together with the passport copies be considered. Printing out and signing is not necessary.

Who is eligible for funding?
  • Small companies with up to 10 employees which are economically active and permanently in the market
  • Freelancers and self-employed professionals who exercise their activities as main occuppation and
    + exercise their activities from business premises in the state of Bremen and
    + are registered with a German tax office and
    + got into economic difficulties as a result of the Corona pandemic and
    + have not yet been in economic difficulties on 31 December 2019.

How are the economic difficulties due to the Corona pandemic to be proved?
The applicant has to assure that he/she got into economic difficulties as a result of the Corona pandemic and that these difficulties threaten his/her existence as the current revenue from the business activities will expectedly not suffice for the coverage of the liabilities from the current commercial material and financial expenses during the next 3 months (liquidity bottleneck).

How is the funding made?
The emergency aid is granted in the form of a non-repayable grant. The amount of the emergency aid depends on the individually calculated liquidity bottleneck of the applicant. The maximum amount is limited by the number of employees:
  • Max. 9,000 euros for applicants with up to 5 employees
  • Max. 15,000 euros for applicants with up to 10 employees
The decisive factor is not the number of employees, but the number of full-time equivalents.

Which costs and liabilities are taken into account for the calculation of the liquidity bottleneck?
  • Rent for commercially used premises
  • Insurance fees for the commercial activities
  • Interest and lease payments for commercially used goods and equipment
  • Car insurance / lease payments / liability insurance, if the car is necessary for the commercial activity
The costs can be indicated for 3 consecutive months.

The expected revenues of the next 3 months have to be deducted from the calculation of the liquidity bottleneck.
First steps for companies in crisis
The first thing to do is to put together a summary of your running costs, outstanding liabilities and any receivables. Your aim must be to reduce your outgoings and protect liquidity.

Work through this checklist:
1. Assess your own liquidity and financial position (How much cash do you have in your bank account? What does your cash flow look like? What reserves do you have and how long will they last?)
2. Talk to your suppliers and see if you can arrange payment in instalments
3. Talk to your customers and, if possible, agree advance payments and payment in instalments
4. Talk to your landlord to see if they will agree to reduced or deferred payments
5. Talk to your bank (new borrowing backed by KfW, BAB or the Bremen guarantee bank, increased borrowing limit or repayment deferral); talk to the Task Force (in German) or write to task-force@bab-bremen.de
6. Ask the tax office and social insurance provider about deferred payments (see below)
7. Ask the tax office whether advance tax payments may be adjusted; make an application
8. Review planned capital expenditure and consider postponing
9. Consider short-time working as an alternative
Important hotlines and e-mail adresses for companies
Please note: Many hotlines are extremely busy at the moment and waiting times may be long. Please consider putting your enquiry into an email instead. Email addresses for the individual agencies can be found in the relevant sections on this website.

Bremen Task Force
Expert advice from the BAB Task Force
We will discuss with you who can cover your liquidity requirement. If your bank is prepared to lend to you, it can secure guarantees from the KfW development bank and the guarantee bank. If you do not have a relationship with a principal bank or your principal bank will not give you a loan, BAB, the development bank for Bremen and Bremerhaven, is able to extend loans. The best course of action will be decided on a case-by-case basis.

It is particularly important to make use of all opportunities to reduce costs, for example by claiming short-time-working support. Tax deferrals can also help. Companies must also always examine whether other possibilities exist for reducing costs or deferring payments. These may differ from one company to another.

Owing to the huge demand for the telephone hotline (+49 (0)421 9600 333), specific queries can also be addressed directly to the Task Force at task-force@bab-bremen.de. To enable queries to be answered efficiently, please provide details of your business and liquidity requirement due to the current crisis situation. We will get back to you as soon as we can!

Lending
BAB can help you to bridge a liquidity gap. Before we can consider any lending. we need information on your financial situation. We aim to cover your liquidity requirement with medium to long term funding, to avoid compromising your company’s liquidity with excessively high repayments in the coming years.

Additional guarantees for loans from your principal bank
The guarantee bank (Bürgschaftsbank) and the KfW development bank can provide a guarantee (guarantee bank) or an indemnity (KfW) for the bank that is lending to you. This reduces the risk to the lending bank, which is likely to make it more willing to lend. The guarantee bank and KfW have considerably increased their scope for providing assistance thanks to support from the federal government and the Bremen state government.

Liquidity support for small and medium-sized enterprises (SMEs)
Companies with a liquidity gap of less than €50,000 that is not covered by their own bank can apply directly to the BAB Task Force for a short-term operating loan (coronavirus crisis). Please use the forms provided in the download section of the Task Force website and send this by email to task-force@bab-bremen.de. (Micro) businesses, freelancers and artists will be given priority.

€10 million of additional regional funding for Bremen businesses
BAB has created an additional €10 million fund to provide support during the coronavirus crisis. All (micro) businesses, freelancers and artists affected will be given priority. BAB has seconded additional staff to the Task Force to help implement this scheme.

Federal government assistance
Support from the federal government is currently concentrated on the extended KfW programmes with indemnities and extended guarantees from the guarantee banks for loans extended by commercial banks. We are continuously monitoring developments in this area and will keep you informed of any new packages. Bremen, together with the other federal states, has already successfully lobbied the federal government for improved terms. As chairwoman of the conference of German Ministers for Economic Affairs (Wirtschaftsministerkonferenz), Bremen’s Senator for the Economy, Labour and Europe will work with the other federal states to continue lobbying the federal government to set up additional schemes and seek state aid exemptions from the EU. We are also supporting initiatives for (micro) businesses, freelancers and artists. The federal government has announced additional relief measures.
Further information is available from the KfW.

What are we asking applicants to do?
Due to the huge number of applications, we are asking everyone to be as effective and efficient as possible. BAB will continue to expand and manage its capacity in order to cope with the growing number of applications and credit checks. The BAB has the following requests:
- Please work out what support you need using due commercial diligence.
- Please make sure that you have documentary evidence of your current financial situation to hand.
- Please talk to your bank about who should cover your needs and/or which agencies should be involved.
- Please note that although applications are being processed quickly, time will be required for credit checks.
- Please act calmly and rationally so that the whole system remains stable.
Tax relief for businesses
The tax office of the Bremen state government has put tax measures in place to help ease the burden on businesses. They include
  • Reducing or suspending prepayments of income tax or corporation tax (application required)
  • Interest-free deferral of tax payments when they fall due
  • Waiving late payment penalties
  • Not taking enforcement action on debts

If you have any queries regarding the above points, please contact your tax office on the following numbers:
  • Bremen tax office: Tel. +49 (0)421 361 90909 and +49 (0)421 361 95096
  • Bremerhaven tax office: Tel. +49 (0)471 596 99000

The tax offices can also be  contacted at these dedicated email addresses:

The following form can be used for applications to reduce or defer tax prepayments: http://www.bayreuth.ihk.de/blueprint/servlet/resource/blob/4735300/455be56d8a66f4196e07266b654d7b95/vordruck-steuererleichterungen-aufgrund-coronavirus-data.pdf

Deferral of social security contributions
The "GKV-Spitzenverband der Krankenkassen" has recommended all statutory health insurance funds to temporarily facilitate the deferral of social security contributions. Deferral of contributions under the facilitated conditions should in principle be possible once all other measures from the various aid packages and support measures of the Federal Government have been exhausted.

A application should be submitted informally directly to your respective health insurance fund with reference to the emergency situation caused by the Corona crisis and Section 76 of the German Social Code, Book IV (§ 76 SGB IV). For all questions and applications, please contact your respective social insurance agency.
Apply for short-term-working support
Short-time working is when a business does not have enough work for some or all of its workers and it has to temporarily reduce their hours or lay them off completely. To avoid redundancy, it can apply for short-time-working support. This is similar to unemployment benefit, but is paid by the company which then claims it back from the Federal Employment Agency. This helps to bridge the gap until orders pick up again.

Effect of short-time-working support
Workers keep their jobs and employers reduce their wage bill. Companies hold onto their experienced staff even when business is slack.

Conditions for receiving short-time-working support
There are a few conditions that have to be met. Companies can apply for short-time working if, as a result of economic circumstances beyond their control such as supply shortages for parts required in production or other unavoidable events such as floods or coronavirus:
  • they temporarily suffer financial difficulties, they consequently do not have enough work for all their employees,
  • and at least 10 per cent of the company’s employees are losing at least 10 per cent of their salary.

Changes arising from the emergency law passed by the federal government
The new provisions will enable more companies to use short-time working. Previously, at least one third of the employees in the company had to be affected by a loss of work and wages. Now, the support will be available if 10 per cent of employees are affected. In addition, the Federal Employment Agency will also reimburse social insurance contributions in full. Employees remain registered for social insurance even when on short-time working. In the past, the employer had to cover these costs in full itself. Another change is that contract staff will now also be eligible for short-time-working support.

Conditions for short-time-working support are ‘financial circumstances’ and ‘unavoidable events’. What does that mean?
The law specifies that companies can only claim short-time-working support in an emergency, not to cover normal operating risks. Financial circumstances refer to influences that are beyond the control of the business. In the context of the coronavirus crisis, financial circumstances may apply for example if supplies of parts cease, no alternatives are available and production lines come to a standstill. Then there are the ‘unavoidable events’. These include floods, for example, and also orders issued by health authorities.

Applying for short-time-working support
Companies need to contact the Federal Employment Agency and explain their circumstances. If the conditions for short-time-working support are met, the company notifies the agency in writing. Businesses within the hotel, hospitality, restaurant and events industries can also apply for short-time working support. Both the notification of short-time working and the submission of the application can be done online if the employer is registered with the Federal Employment Agency: www.arbeitsagentur.de/kurzarbeit

If you wish to apply for short-time-working support, you need the following forms. These can be downloaded using the links below (german):

Documents you will need to submit in support of your application
The company must submit various documents to the Federal Employment Agency in order to establish that it is eligible for short-term-working support. These include the agreement on the introduction of short-time working with the works council or the employees. Employers should also submit the notices of termination pending a change of contract (Änderungskündigung), where applicable.

Duration of the short-time-working support
Short-time-working support is available for up to twelve months, but depends on the individual case.

Amount of short-term-working support
Short-time working-support is equivalent to 60 per cent of the employee’s usual net pay. If employees have entered at least 0.5 children on their wage-tax card, the rate is 67 per cent.

Is the support provided by the Federal Employment Agency enough to weather a severe economic crisis?
The Federal Employment Agency is well prepared for a possible severe crisis. It has reserves of €26 billion to fall back on if required. Information from the Federal Ministry of Labour and Social Affairs

Advice and additional information for employers
The present demand for information about short-time working is immense. For a simple and straightforward way of accessing direct information about the current process, click on the link below. This will take you to a webinar that was held on 20 March 2020 in partnership with the Lower Saxony Metal Industry employers’ association and the Federal Employment Agency.
The webinar is available to view and share with others here: https://niedersachsenmetall.de/aktuelles/webinar-die-arbeitgeberverbaende-zur-corona-krise
There are also two further webinars on the conditions and the procedure for applying for short-time-working support
International trade and export matters
International trade documents
The Bremen chamber of commerce will remain available to issue and accept international trade documents. In the event of closures, reciprocal support arrangements have been made with neighbouring chambers.

Hotline for international trade queries:
  • The chamber of commerce has set up a hotline for companies that have questions about the effects of coronavirus on international supply chains or transport. Hotline: +49 (0)421 3637 241.
  • The chamber of commerce keeps its members informed about the situation in the key export markets and the priorities being set in Brussels, and also provides strategic advice.
The federal government provides businesses with export credit guarantees (‘Hermes cover’), a flexible, effective and comprehensive form of support. These are backed by a well-resourced KfW scheme to fund export business. If there is additional need for export cover and funding, the authorisation limits can be swiftly raised.

Germany Trade and Invest (GTAI), the German economic development agency, has also put together a special information package on coronavirus and international trade: https://www.gtai.de/gtai-de/trade/specials/special/coronavirus-218400
Information for freelancers and the self-employed
Freelancers and the self-employed will be particularly hard hit by the loss of orders. They can apply to the tax office (as described above) for any of the following: a reduction or suspension of tax prepayments, a deferral of tax payments when they fall due, a waiver of late payment penalties, reimbursement of any social insurance contributions or the waiver of enforcement action on debts. Self-employed workers should contact the relevant offices as soon as possible if they wish to claim any of these.

Payments for self-employed people in quarantine
If self-employed people have to go into quarantine, they can claim for loss of earnings under the law on the prevention and combating of infectious diseases. The payment is based on the profit reported in the tax assessment notice for the previous year.

The following bodies are responsible for applications for financial support: Further information for the self-employed is available here: https://www.gruenderlexikon.de/news/kurz-notiert/corona-hilfen-fuer-selbststaendige-freiberufler-und-kleinunternehmer-84233709