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As a result of the second wave of infections and the associated measures, the federal government is extending the KfW special program until June 30, 2021. The quick loans are intended to quickly provide the companies concerned with liquidity.
Now even self-employed people and small businesses can apply for a KfW express loan.
Stock Photos-MG / stock.adobe.com
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In order to be able to grant the KfW special program and the quick loans until summer 2021, Germany still needs the approval of the European Commission for the fundamentals of state aid. From now on, the quick loan should not only help medium-sized companies with capital through the crisis, but now also self-employed people and companies with up to ten employees. The loans can be applied for through the house banks in the amount of up to 300,000 euros. As before, the federal government assumes the full risk and releases the house banks from liability, reports KfW.
Loan commitments of five billion euros
In order to make it easier to repay the KfW quick loans, early, pro-rata repayment will also be possible from November 16, 2020 without a prepayment penalty. This should clear the way for other Corona aid programs to give companies more planning security. According to KfW CEO Günther Bräunig, the KfW Corona loans for SMEs have so far proven themselves in the crisis. In this program, more than five billion euros have already been pledged.
KfW has counted more than 95,000 applications for KfW Corona aid so far. 99 percent of the applications with a volume of almost 46 billion euros have already been finally processed. Around 97 percent of these came from small and medium-sized companies, it said. 99 percent are loans with a volume of up to three million euros.
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The KfW express loan comprises the following key points |
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The KfW Schnellkredit is available to small and medium-sized companies as well as self-employed persons who have been active in the market since at least January 1, 2019. |
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The company must have made a profit in the sum of the years 2017 to 2019 or in 2019. If the company has only been on the market for a shorter period of time, this period is used. |
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The credit volume per corporate group is up to 25 percent of the annual turnover in 2019, a maximum of 800,000 euros for companies with more than 50 employees, a maximum of 500,000 euros for companies with up to 50 employees and a maximum of 300,000 euros for companies with up to ten employees Employees. |
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The company must not have been in difficulty as of December 31, 2019 and must be in an orderly financial position at that time. The interest rate is currently three percent with a term of ten years. |
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The bank receives a 100 percent exemption from liability from KfW, secured by a federal guarantee. |
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The loan is approved without any further credit risk assessment by the bank or KfW. This allows the loan to be approved quickly. There is no security to be provided. |
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