Kfw wants to provide extensive loans to companies. The liquidity assistance is intended to save companies in the corona crisis from insolvency. We show which kfw loans are available and which special program has been set up.
Kfw grants loans without upper limit. You submit the application to your local bank, which still performs credit checks. (photo: unsplash)
Loans without limit from the kfw, but with restrictions
Kfw is also granting loans to companies in times of the corona crisis. You must apply for the kfw corona loans with your financial partner with an appropriate concept – usually this is your house bank. For guarantees – to compensate for a lack of collateral – the guarantee banks of the federal states can step in.The kfw program with loans for liquidity assistance for companies in the corona crisis is divided into the following areas:
Companies that have been on the market for less than 3 years:
For young companies that can not yet present 2 annual financial statements, there is the possibility of the loan kfw start-up loan startgeld to take up. This can be used to finance up to 30.000 euros for working capital can be applied for. Kfw assumes 80% of the risk for the house bank.
Alternatively, in times of the corona crisis, the ERP-grunderkredit universell can also be applied for – but only if the house bank agrees to assume the risk. How high the sums are then, you will learn in the next section
Young companies that have been on the market for 3 to 5 years:
If you have been active for at least 3 years and can present 2 annual financial statements, the application for the kfw universal start-up loan is possible without any problems. This can be used to finance working capital and investments. These include in detail:
- (working capital): z.B. For your rent payments, personnel costs or the pre-financing of payment terms granted to your customers
- Warehouse costs: bspw. In retail, when the goods you have already ordered arrive, but you currently have a significant drop in sales : when you have to pay for machinery or business equipment
The loan amount is limited in the corona crisis as follows:
- 25% of the turnover that you have achieved in 2019 (with 300.000 euros, i.E. 75.000 euros) or
- Your labor costs of 2019 times 2 (if labor costs in 2019 amounted to 100.000 € then 200.000 €) or
- Your financing or. Capital requirements for the next 18 months (for small and medium-sized enterprises) or 12 months for large companies or
- For loans over 25 million. Euro max. 50% of the current total debt of your company
The cost of the loan should be 1 to 1.46% debit interest for small and medium-sized enterprises.
In absolute terms, kfw's corona loan is worth 1 billion. Euro capped, which is however unproblematic for most enterprises with this company age. The term kfw start-up loan universal is 2 to 5 years in connection with the corona crisis. The 1. Year may be free of redemption in the process to relieve liquidity. If only working capital is to be financed, repayment is possible in one sum at the end of the term for a term of 2 years.Kfw wants to simplify lending for banks by assuming the risk for small companies (maximum 250 employees, maximum 50 million euros in sales) of the bank's.
Companies that have been on the market for longer than 5 years:
For older companies, the liquidity assistance is issued through the kfw entrepreneur loan. However, the conditions in the corona crisis for this kfw loan are identical to those of the kfw start-up loan universal program described above.
Kfw special program:
The kfw special program is aimed at medium-sized and large companies in the corona crisis. Accordingly, kfw bankengruppe participates in syndicated financing for working capital and investments in germany starting at 25 million euros. Kfw assumes 50 percent of total debt and 80 percent of entrepreneurial risk.
Conditions of the kfw special program at a glance:
- From 25 million euros in financing
- Term of up to 6 years
- Kfw assumes up to 80 percent of the risk
- Applies to working capital and investments in germany
- Orderly economic conditions are a prerequisite, no unsettled payment arrears of more than 30 days
- On-site financing review by kfw possible
- Financing structures flexible
- Further information can be found in the fact sheet
Credit assessment by house banks still takes place
Kfw's assistance is not without limits: since applications are made via the house banks, they will continue to check your creditworthiness. For this you need to submit annual financial statements and a financial plan incl. A budget. Prepare liquidity planning. If this check is not successful, you are not entitled to kfw support either.Prepare application for kfw loan for corona crisis
If you want to get a loan from kfw because of corona, you have to go to your local bank. Kfw offers digital help for preparation.
You can easily fill out the loan application for your savings bank or bank in the kfw online portal.
Loans up to 3 million euros are automated and processed faster. Click here to go directly to the kfw portal.
What other liquidity support is available for the self-employed and freelancers??
Lone fighters and small businesses are hit particularly hard by the current crisis. Bavaria as a federal state sets a good example here: freelancers and smes with up to 250 employees receive financial support from an emergency aid fund. The guarantee framework of lfa forderbank bayern will be increased by 500 million euros.
On 23.03.In 2020, the federal cabinet unveiled a rescue package worth 756 billion euros in the fight against the corona crisis. Up to 15.000 euros of subsidy should be given to micro-enterprises and solo self-employed people. The aid package received approval from the bundestag on wednesday and is expected to be confirmed by the bundesrat on friday. No later than 01. April the corona help should arrive at the companies. More to the individual measures you experience in the article to the corona assistance.
Anyone who has tried to obtain accurate information from their bank or the relevant tax office in recent days will be lucky if they get through. But while the perplexity at the beginning of the week was still great and the information sparse, authorities and development banks as well as guarantee banks are now well positioned. Aid packages have been and are being put together, emergency hotlines set up and rescue parachutes stretched out.
What is the next step for liquidity assistance?
Every day brings more structure to the application process for liquidity assistance: the federal and state governments, authorities and advisory agencies are working closely together to stabilize the economy as best they can during the crisis. Online applications are available for companies in more and more federal states to apply for corona emergency aid grants and loans. More offers of assistance are gradually being posted online on an almost daily basis. We wish you all the best in this challenging period and will keep you updated with info!