Factsheet for case DE-2020-13/349 – Updated – measures in Germany
|Country||Germany , applies nationwide|
|Time period||Temporary, 23 March 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Sandra Vogel (IW) and Eurofound|
|Case created||07 April 2020 (updated 05 May 2021)|
This measure improved liquidity for small and medium sized companies that were not in trouble before the COVID-19 outbreak. The new conditions for receiving loans are based on the Rescue package adpoted by the Federal Government in order to provide liquidity to companies during the crisis and are also facilitated by the EU "Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak“. The measure is temporary.
Given certain pre-conditons, companies with more than 10 employees can apply for a loan (3% interest rate, running time: maximum 10 years). The companies with more than 50 employees can be granted €800,000. Companies with fewer than 50 employees can apply for a loan worth up to €500,000. Additional risk assessment is currently not applied by the house bank or the KfW (the German Credit Institute for Reconstruction). Latter will guarantee all such loans (backed by the Federal Government's guarantee to take on all risks in the worst case).
Conditions still applicable to receive such a loan are:
No information to date on this particular measure. However, the KfW issued a press release with the overall usage of the COVID-19 related measures administered by the bank. According to the press release, the KfW received over 70,000 loan applications (worth €50 billion) since 23 March 2020. 98.5% of these application were not higher than €3 million. In another press release from 6 November 2020, the bank stated to have received 95,000 applications for all its additional COVID-19 related programmes. 99% of the application had been finalised by the bank. Around 97% of the applicants were small and medium-sized companies. Granted sums amounted to a volume of nearly €46 billion.
|Does not apply to workers||
||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
There is no institutionalized tripartite setting for social dialogue in Germany. However, social partners are usually informed and often consulted on larger reform measures or asked for their views.
German social partners welcomed the aid package issued by the Federal Government in March 2020. Employers and union alike support the additional KfW funding provided by the aid package, in order to improve companies' liquidity during the pandemic.
Eurofound (2020), KfW instant loan for medium-sized entreprises, case DE-2020-13/349 (measures in Germany), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.