What government loans, grants and assistance are provided?

What government loans, grants and assistance are provided?

At present, the following financially effective measures should be highlighted:

Deferral of tax payments

The tax offices are instructed to defer tax debts without interest. Adjustments of annual tax prepayments are possible and improve their cash flow.

KfW loans

The conditions of the KfW programmes “Corporate Loan 037/047” (existing enterprises) and “ERP Start-up Loan 073/074/075/076” (enterprises < 5 years) were relaxed.

For small and medium-sized enterprises with a 90 % release from liability the debit interest rate is between 1.00% and 1.46%. KfW waives its own risk assessment for loan amounts of up to EUR 3 million per enterprise. Risk assessment is the sole responsibility of the house bank. The terms are up to 5 years with a maximum of 1 grace year.

The maximum loan amount is

  • 25 % of your annual turnover in 2019 or
  • twice your wage costs in 2019 or
  • your financing requirements for the next 18 months for small and medium-sized enterprises.

The programs are available to companies that have temporarily experienced financing difficulties due to the Corona crisis.

You apply for the loan at your bank or savings bank. You can obtain further information here: Kfw Corona-Aid

Prepare your application with an updated liquidity plan now and achieve the necessary liquidity more quickly.

We are fully operational to support you in these challenging times. Please do not hesitate to contact us.

Guarantee programs

For guarantee banks, the maximum guarantee amount is increased from EUR 1,25 million to EUR 2,5 million. Guarantee banks may take decisions on the granting of guarantees up to an amount of EUR 250,000 independently within three days. In addition, the guarantee ratio is increased to up to 80% for working capital throughout and the term of the guarantee can now be up to 8 years.

The basic conditions for granting the guarantee, such as standard banking collateral and conditions, remain the same.

Prepare your application with an updated liquidity plan now and get the necessary guarantee faster.

We are fully operational to support you in these challenging times. Please do not hesitate to contact us.

Direct financial aid

In parallel with the credit assistance and facilitation of guarantees, there is an emergency programme for self-employed persons and small enterprises. The aim of the programme is to cushion the hardships of the crisis, particularly in terms of fixed costs such as rents, leases, leasing or loan instalments. Applications can be submitted online (e.g. in Hesse: Regional Council of Kassel or Baden-Württemberg: Ministry of Economics, Labour and Housing).

The prerequisite for the aid is proof that the respective company was not in financial difficulties before March 2020 and that the damage occurred after 11 March 2020.

The prerequisite for the aid is proof that the respective company was not in financial difficulties before March 2020 and that the damage occurred after 11 March 2020.

The amount of the emergency aid is graduated according to the number of employees:

self-employed persons and enterprises with up to 5 employees

  • Single payment of up to EUR 10.000 for 3 months (non-refundable)
  • Applies to self-employed persons and companies with up to 5 employees (full-time equivalents)

self-employed persons and enterprises with up to 10 employees

  • Single payment of up to EUR 20.000 € for 3 months (non-refundable)
  • Applies to self-employed persons and companies with up to 10 employees (full-time equivalents)

self-employed persons and enterprises with up to 50 employees

  • Single payment of up to EUR 30.000 € for 3 months (non-refundable)
  • Applies to self-employed persons and companies with up to 50 employees (full-time equivalents)

We are fully operational to support you in these challenging times. Please do not hesitate to contact us.