Information on state subsidies & special credit programs

Billion-dollar protection shield for businesses and companies

  • What government-subsidised funds are available to cover short-term financing requirements and bridge liquidity bottlenecks?
  • What additional special programs are available?
  • What is the application procedure for support measures?

Up to 15.000 Euro immediate aid for companies & self-employed

As a result of the corona crisis, small companies and solo self-employed persons such as artists and carers are to receive direct emergency aid of up to 15,000 euros over a period of 3 months.

A stabilization fund is to be used to strengthen large companies with capital, and the state is to be able to participate in the companies if necessary.

This would be financial aid, not loans. The federal cabinet will make the decision on the basis of the draft law “Corona emergency aid for small businesses and the self-employed”.

According to the law, financial aid can be granted to companies with “up to ten employees” who have suffered damage as a result of Corona after 11 March.

A one-off payment of 9000 euros for three months will be given to companies with up to five employees (full-time equivalents). Companies with up to ten full-time employees are to receive up to 15,000 euros for three months. If the landlord reduces the rent, the unused subsidy can be used for a second month.

Applications should be submitted electronically wherever possible. The application must be accompanied by an affidavit stating that the existence of the company is at risk or in liquidity bottlenecks due to the corona crisis.

Application for “Emergency Aid”

of the Wirtschaftsministeriums Bayern (Bavarian Ministry of Economic Affairs) is online.

The Bavarian state government has set up an emergency aid programme aimed at companies and freelancers who, as a result of the Corona crisis, have fallen into an economic imbalance and liquidity bottlenecks that threaten their existence.

Information on who is entitled to apply, the amount of emergency aid, application form, procedures and the responsible approval and enforcement authorities can be found on the website of the Bavarian State Ministry of Economic Affairs, Regional Development and Energy.

KfW Corona Aid – Loans for enterprises

From 23.03.2020, you can apply for a loan for investments and working capital from banks or savings banks, provided that you were not in difficulty until 31.12.2019.

KfW loan for companies that have been on the market for >5 years
KfW entrepreneur loan (037/047)

When you apply for a loan for investments and working capital, the KfW assumes part of the risk of your bank.

  • for large enterprises (037) up to 80% risk assumption
  • for small and medium-sized enterprises (047) up to 90 % risk assumption

This increases your chances of receiving a loan commitment.

You can apply for up to 1 billion euros per group of companies. The maximum loan amount is limited to

  • 25 % of annual sales in 2019 or
  • twice the wage costs of 2019 or
  • current financing requirements for the next 18 months for small and medium-sized enterprises or 12 months for large enterprises, or
  • 50 % of the total debt of your company for loans over 25 million euros.

KfW loan for young companies that have been on the market for < 5 years
ERP start-up loan – universal (073/074/075/076)

If your company has been active on the market for at least 3 years, you can apply for a loan for investments and working capital. KfW assumes part of the risk of your bank. This increases your chance of receiving a loan commitment.

  • for large companies (075) up to 80% risk assumption
  • for small and medium-sized enterprises (076) up to 90 % risk assumption

If your company has been active in the market for less than 3 years, small and medium-sized enterprises (074) and large companies (073) can also apply for a loan for investments and working capital.

They can apply for up to 1 billion euros per group of companies. The maximum loan amount is limited to

  • 25 % of annual sales in 2019 or
  • twice the wage costs of 2019 or
  • current financing requirements for the next 18 months for small and medium-sized enterprises or 12 months for large enterprises, or
  • 50% of your company’s total debt for loans over 25 million euros.

KfW Special Programme – Syndicated financing from EUR 25 million
Direct participation for syndicated financing (855)

KfW participates in syndicated financing for investments and working capital of medium-sized and large enterprises. Here KfW assumes up to 80% of the risk, but no more than 50% of the risks of the total debt. This increases your chances of obtaining individually structured and tailor-made syndicated financing.

The KfW risk share amounts to at least EUR 25 million and is limited to

  • 25 % of annual sales in 2019 or
  • twice the wage costs of 2019 or
  • current financing requirements for the next 12 months.

Optionally, all banks participating in the consortium can be refinanced by KfW.

If you wish to use a loan guarantee, please contact the guarantee bank of your federal state.

We will be happy to advise and assist you in applying for loans.

LfA Development Bank Bavaria
Liquidity support through loans & risk assumption

The LfA helps companies to overcome the corona crisis with loans and risk assumption. A prerequisite for the support of the companies is a fundamentally viable business model and the willingness of the house banks to integrate the LfA support offers into the overall financing.

If you would like to take advantage of financing from the following programmes, please contact your house bank where the LfA loans are applied for and paid out.

Universal loan

  • Eligible to apply are commercial enterprises with an annual turnover (consolidated turnover) of up to and including 500 million euros and members of the liberal professions
  • financed, investments, the acquisition of inventories and general working capital requirements, including rescheduling of current liabilities
  • Maximum loan amount: EUR 10 million per project
  • as far as a loan of up to 4 million euros cannot be sufficiently secured by banks, an 80 percent indemnity against liability is possible for companies with group sales of up to and including 500 million euros
  • for indemnity against liability , a simplified application and processing procedure applies for all LfA promotional loans with indemnification up to 500,000 euros.

Guarantees

  • Eligible to apply are medium-sized commercial enterprises and members of the liberal professions
  • Guarantees of the LfA can also be applied for operating resources
  • maximum guarantee rate is increased to a uniform 80 percent of the loan amount for working capital, rescue and restructuring guarantees and consolidation loans
  • LfA guarantees up to EUR 500,000 the simplified application and processing procedure also applies as for indemnifications up to EUR 500,000
  • Guarantees of the LfA will be taken over up to an amount of EUR 5 million. State guarantees are also possible.
  • for Handicraft, trade, hotels and restaurants as well as horticultural businesses can take advantage of guarantees from Bürgschaftsbank Bayern GmbH

Acute credit

  • Eligible to apply are medium-sized companies in the commercial sector
  • Maximum loan amount: 2 million euros
  • at the submission of a consolidation concept is generally waived if the house bank confirms a reason for consolidation to the LfA in the application

Questions?

If you need support or have any other questions about these topics, please contact us. We are happy to assist you with advice.

Service-Phone
+49 89 547143
or by e-mail
corona@acconsis.de

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ACCONSIS – Corona Information (Update)

Addition to: Safe through the Corona crisis –
What you as an entrepreneur and freelancer should now pay attention to

After many aid programmes of the Federal Government have been adopted, our update provides you with a summary of the financial aid currently available to companies, the regulations and deadlines that apply to them and how you can make use of them quickly and easily in case of doubt.

In addition, you will find information on insolvency law and an outlook on the situation.

ACCONSIS – Corona Information

Safe through the Corona crisis –
What you as an entrepreneur and freelancer should now pay attention to

This client information provides you with important answers to many questions.