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KfW special program is extended and expanded »THE OPERATION

In view of the dynamic infection rate and the continued tense economic situation in the wake of the corona pandemic, the Federal Government is extending the KfW special program until June 30, 2021. This also applies to the KfW quick loan.

“The KfW Corona loans have proven to be an effective instrument in the current crisis. The high funding figures also reflect the enormous effort that we have made so far together with politicians and the German banking industry, “commented KfW CEO Dr. Günther Bräunig made the decision. “The extension of the special program and the opening of the KfW express loan for all companies are an important signal in support of the German economy.”

KfW quick loan now also for small businesses

Since November 9, 2020, the KfW quick loan has also been available for self-employed people and companies with up to ten employees. Companies can apply for these KfW loans with an amount of up to EUR 300,000 via their house banks, depending on the turnover achieved in 2019. The federal government assumes the full risk and releases the house banks from liability.

The regulations for the repayment of KfW quick loans have also been improved. Since November 16, 2020, it has now also been possible to make early proportional repayment without a prepayment penalty. This makes it easier to combine with other Corona aid programs.

KfW special program as a support for German SMEs

The KfW express loan as part of the KfW special program has proven to be an important pillar for German SMEs in the Corona crisis. So far, more than 5 billion euros have been committed in this program. The KfW express loan has been available since November 9, 2020 with the following key points:

  • The KfW Schnellkredit is available to small and medium-sized companies as well as self-employed persons who have been active in the market at least since 01.01.2019.
  • In addition, the company must have made a profit for the years 2017-2019 or in 2019. If the company has only been on the market for a shorter period of time, this period is used.
  • The credit volume per corporate group is up to 25% 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 10 employees .
  • The company must not have been in difficulty as of December 31, 2019 and must have an orderly economic situation at this point in time.
  • The interest rate is currently 3% with a term of ten years.
  • The bank receives a 100% exemption from liability from KfW, secured by a federal guarantee.
  • 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.

So far commitments of almost 46 billion euros

In total, more than 95,000 applications for KfW corona aid have now been received by KfW. 99% of the applications have already been finally processed. The commitments have reached a total volume of almost EUR 46 billion. Around 97% of the applications came from small and medium-sized companies, 99% of which were loans with a volume of up to EUR 3 million. It is therefore clear that this aid will primarily benefit German SMEs, the backbone of the German economy.

As soon as the European Commission has approved the extension of the previous state aid basis, the corresponding aid can also be granted in 2021.

(BMF from November 6th, 2020 / Viola C. Didier, RES JURA editorial office)

Our recommendation for more in-depth research on business law:
Owlit module “Insolvency and restructuring law (RWS Verlag)”


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