Press Release from 2020-03-23 / Group, Domestic Promotion
Altmaier: “Additional KfW Special Programme 2020 for the economy starts today”
Joint Press Release
Expanded aid for businesses. Applications possible with immediate effect. Risk assumption by KfW of up to 90% and interest rate cuts.
The new KfW Special Programme 2020 has been launched today. The funds for the KfW Special Programme are unlimited. It is available to small and medium-sized enterprises as well as large companies. The loan terms have been improved once again. Lower interest rates and simplified risk assessment by KfW for loans of up to EUR 3 million will create even more relief for the German economy. A higher liability waiver by KfW of up to 90% for working capital and investments by small and medium-sized enterprises will make it easier for banks and savings banks to grant loans. The improved terms are made possible by the European Commission’s Temporary Framework for state aid measures, which came into force on 19 March 2020
Federal Minister for Economic Affairs and Energy Peter Altmaier: “It is now important to help companies quickly and in an unbureaucratic way. One important pillar is access to liquidity. The improved promotional terms in the KfW Special Programme 2020 are an important pillar for the companies and business ownersin this respect. Applications will be processed quickly and efficiently. Payments will be made as quickly as possible, because we know that for many enterprises every week counts.”
Federal Minister of Finance Olaf Scholz: “We are protecting our country, our workforce and our companies with an unprecedented aid programme. Together with KfW we are ensuring that companies remain solvent even during the crisis. To this end we are also leveraging the enormous financial strength of our government. The German Federal Government will provide the necessary guarantee volumes for KfW.”
KfW Chief Executive Officer Dr Günther Bräunig: “The commercial banks and KfW have prepared intensively for today. Never before have we been able to get a programme up and running so quickly. The German Federal Government is assuming nearly all liability and the loan margins are extremely low.”
The KfW Special Programme 2020 will be implemented through the programmes KfW Entrepreneur Loan (037/047) and ERP Start-up Loan – Universal (073/074/075/076) with modified and considerably extended promotional terms. In addition, the special programme “Direct equity investment in structured financing schemes” (855) facilitates large-scale syndicate financing with risk sharing by KfW.
The programmes are available to companies that have temporarily experienced financing difficulties due to the coronavirus crisis. In concrete terms, this means that all companies that were not already experiencing difficulties on 31 December 2019 can apply for a loan. Financing can be provided for investments and working capital.
Starting today, applications can be submitted through the applicant’s regular bank. Funds will be disbursed as quickly as possible. Applications will be processed simply and unbureaucratically.