06 April 2020 – Guaranteed loans to small to medium sized businesses

Intervention Categories: Finance policy and financial aid; Stimulus packages and financial support
Level of Jurisdiction: National

Overview: The German Government introduced an additional loan programme for small and medium sized enterprises.

Businesses can get immediate loans of up to to three months’ turnover, up to a maximum of €500,000 for businesses with up to 50 employees and €800,000 for businesses with more than 50 employees. The loan will be at an interest rate of 3% with a term of 10 years.

To qualify for a loan, Businesses must have more than 10 employees, been in business since 1 January 2019, made a profit in 2019 or on average over the last three years, and been in a sound financial state 31 December 2019.

The loans are provided by private banks under a 100 percent indemnity from the Federal Government. Provided the criteria are met, a loan will be made without further credit risk assessment.

The loan programme is based on the Temporary Framework published by the European Union Commission on 3 April 2020.
Full details here: https://www.bmwi.de/Redaktion/DE/Pressemitteilungen/2020/20200406-bundesregierung-beschliesst-weitergehenden-kfw-schnellkredit-fuer-den-mittelstand.html