Hamburg's entrepreneurs are in a quandary: Corona aid must be paid back!

Hamburg's entrepreneurs are in a quandary: Corona aid must be paid back!

The economic aftermath of the corona pandemic is weighing heavily on many entrepreneurs in Hamburg. A look at the current demands for repayment of Corona aid reveals that around 358 million euros have to be repaid, which poses immense challenges, especially for small businesses and solo self-employed people. This information comes from a request from the left-wing faction in the Hamburg citizenship, like World reported.

A total of around 3.8 billion euros in Corona aid was approved in Hamburg, which was paid out to over 54,000 applicants between 2020 and 2023. What is interesting is that around 8,000 of the reclaim notices have already been issued, with around 2,000 claims still outstanding. To complicate matters, over 18,000 claimants have appealed these reclaims. About a third of these contradictions were fully or partially taken into account, which gives hope to those affected.

A complex procedure

The recovery process is complex. When applying for aid, companies had to provide a sales forecast. Now it is important to prove that the money received was actually needed. This results in some companies having to pay back more money than originally expected. Loud daily news Around a quarter of the companies have to pay back an average of around 7,400 euros.

This extensive final accounting is carried out by third parties, such as tax advisors. Many people find it difficult that the authorities often apply strict standards and consider declines in sales to be not due to corona, but rather to general economic factors. This creates constant pressure for companies, especially at a time when the economic situation is already tense.

Legal disputes

Numerous legal disputes are the result of these claims for repayment. How Taylor Wessing According to reports, there are currently 419 lawsuits pending against repayment orders, and in 2024 the administrative courts made 70 judgments, of which 48 were in favor of the applicants and 16 in favor of the city. This inconsistency creates tension within those affected.

A mixed picture emerges in the first quarter of 2025: While many companies are suffering from repayments and insolvencies are increasing, especially in retail or professional services, the balance from new start-ups and commercial closures remains positive. 6,975 new companies were founded in 2021, up from 5,984 in 2024.

An important voice in this context is that of Xenija Melnik from the Left Party, who sharply criticizes the reclaiming practice. She calls for increased discretion for the responsible authorities in order to give the affected entrepreneurs a little more breathing room.

The processing of Corona aid remains a hot topic and shows how complex and challenging the economic consequences of the pandemic are. It remains to be seen how the situation will develop and whether the authorities will be able to find adequate solutions for companies.