WIBank awards more than 1 billion euros in Corona aid in 2020

With a total of around 1,074 million euros, Wirtschafts- und Infrastrukturbank Hessen (WIBank) has been able to support Hessian entrepreneurs and healthcare institutions on behalf of the state of Hesse since the start of the Corona pandemic in March 2020. This involves aid in the form of (trust) loans, credits, grants, equity investments and guarantees. "The continuing worrying dynamics of the infectious event continue to cause significant constraints on our social and economic life. As a result, many companies, businesses and self-employed people in Hesse are still economically weakened, despite the wide range of Corona assistance offers that we have worked out and provided in a rush since the beginning of the pandemic, together with the state, the federal government and other stakeholders from Hesse's business community. Thus, in the new year, we will continue to do everything we can to support the Hessian economy in these difficult times. This also means that we will regularly put the aid to the test and, together with the state, readjust it where necessary. We stand by companies and the self-employed so that we can get going again together after the crisis," explained Dr. Michael Reckhard, member of the management board of Wirtschafts- und Infrastrukturbank Hessen.

Since the beginning of the Corona pandemic until the end of 2020, WIBank has approved more than 7,650 loans and credits as Corona assistance with a total volume of around 236 million euros to the Hessian economy alone. In this context, small and medium-sized enterprises in the commercial sector and freelancers in Hesse in particular have benefited from the two state aid programs “Hessen-Mikroliquidität” and “Liquiditätshilfe für KMU” in Hesse, which were already introduced at the end of March and the beginning of April.

The Hesse state government is aware of the important role played by WIBank, especially during the Corona pandemic but also beyond: "For us, the top priority is to ensure that Hesse's economic and financial aid for companies can be implemented as quickly as possible. It is good that we have such a powerful development bank in Hesse, which acts as an important partner in this. In the crisis, this is vividly demonstrated: small and medium-sized enterprises in particular receive the best possible advice and support for investments and with working capital through precisely tailored development loans," said Hesse's Economics Minister Tarek Al-Wazir.

"It is good that Hesse is able to react flexibly to the crisis with the special fund 'Hessens Gute Zukunft Sichern'. The state has always been able to provide the aid at short notice that is now urgently needed to get Hessian companies through this crisis. I am grateful to WIBank for very quickly getting the money to where it was and still is so urgently needed last year," said Hesse's Finance Minister Michael Boddenberg.

Start-ups and small and medium-sized enterprises were supported via Beteiligungs-Managementgesellschaft Hessen mbH (BM H), which is part of WIBank, with liquidity investments totaling around EUR 8.6 million to strengthen their equity base. "With the urgently needed equity capital, innovative companies can continue to develop their growth potential and we can thus make an important contribution to strengthening the Hessian start-up and corporate landscape in these difficult times," emphasizes Dr. Michael Reckhard.

In order to survive the economic consequences of the Corona pandemic, entrepreneurs are sometimes dependent on large-volume bank loans. To facilitate such borrowing, the state of Hesse supported Hessian companies in 2020 with guarantees totaling around EUR 37.6 million through state guarantees and through WIBank guarantees (Covid 19). As the state's mandatary, WIBank is the contact and processing agency for these guarantees.

Hessian hospitals were supported with almost 770 million euros in trust grants. Of this, around EUR 10 million was disbursed from state funds for the procurement of respiratory equipment and around EUR 760 million from federal funds as compensation payments to hospitals due to special burdens caused by the Corona virus. In addition, WIBank granted (professional) sports clubs around EUR 4.5 million in trust loans to secure liquidity, and provided municipalities in Hesse with around EUR 13.4 million in trust grants to support sports facilities, such as the refurbishment of swimming pools. Festival operators in Hesse were also supported with around 2.3 million euros. Mention should also be made here of the approximately 49,000 euros in fiduciary grants for redevelopment appraisals. For the gastronomy sector, which has been particularly hard hit, WIBank has pledged around 960,000 euros in grants until the end of 2020.

Gottfried Milde, spokesman for WIBank's management, thanked his staff for their hard work: "The Corona pandemic has also presented us with new challenges. The flood of inquiries and applications has placed enormous demands on our employees. I am all the more proud of the great commitment and dedication our colleagues have shown and continue to show in helping Hesse through this crisis."