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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case DE-2020-13/363 Updated – measures in Germany

Direct participation for syndicate financing

Direktbeteiligung für Konsortialfinanzierung Direktbeteiligung Konsortialfinanzierung Direktbeteiligung Konsortialfinanzierun

Country Germany , applies nationwide
Time period Temporary, 23 March 2020 – 31 December 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Sandra Vogel (IW) and Eurofound
Case created 07 April 2020 (updated 05 May 2021)

Background information

Providing financial support to medium-sized and large companies for investments and working capital. Improved conditions for receiving loans are based on the European Union's 'Temporary Framework for State aid measures' to support the economy in the current COVID-19 outbreak. Also, this measure is part of the support package to stabilise the German economy and help out firms during the COVID-19 crisis. The package was adopted by the Federal Government at the end of March 2020.

Content of measure

If medium-sized or large companies seek syndicate financing for their investments or working capital, KfW bank will bear up to 80% of the risk, but no more than 50% of the total debt. The risk share amounts to at least €25 million. However, it is limited to a certain extent, i.e. 25% of the annual turnover in 2019 or double the wage costs in 2019 or it is not higher than the financing requirements for the next 12 months. This measure is part of the support package to stabilise the German economy and help out firms during the COVID-19 crisis. The package was adopted by the Federal Government at the end of March 2020 and includes several measures easing access to loans and financial assistance for companies of different sizes.


The following updates to this measure have been made after it came into effect.

25 March 2021

On 25 March 2021, the KfW stated in a press release that all its special programmes were prologned until the end of 2021 (including direct participation for syndicate financing). In addition, the bank also stated that around €49 billion were spent in 2020 to provide financial assistance to companies suffering from the negative impact of lockdowns (figure refers to all pandemic related programmes under its umbrella). At the beginning of February 2021, the KfW had already announced that for it had granted €8.4 billion for syndicate financing in 2020.

08 January 2021

On 6 November 2020, the KfW bank announced that its special programmes were prolonged until 30 June 2021 (including direct participation for syndicate financing).

07 October 2020

In a more recent press release, the KfW updated its previous numbers. As of 11 August 2020, the KfW received 81,359 loan applications. 99.8% of these applications were not higher than €3 million. Overall, 99.7% of all applications have been processed. The KfW has granted a total sum of €42.6 billion.

Use of measure

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 KfW press release from 6 November 2020, the bank 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.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Larger corporations
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level


German social partners are usually consulted by the Federal Government on broader measures, though no formal tripartite social dialogue structure exsits in Germany at the federal level.

Views and reactions

The Confederation of German Employers' Association (BDA) and the German Trade Union Confederation (DGB) jointly welcomed the crisis package adopted by the Federal Government in spring 2020. Social partners highlighted in the press release to be in support of the KfW administered measures targeting companies.


  • 13 March 2020: DGB and BDA: The social partners share responsibility in the corona crisis over differencesSocial partners neglect differences (DGB und BDA: Die Sozialpartner stellen gemeinsame Verantwortung in der Coronakrise über Differenzen) (
  • 07 April 2020: KfW coronavirus aid: loans for companies (
  • 04 May 2020: Merkblatt Sonderprogramm "Direktbeteiligung für Konsortialfinanzierung" (
  • 30 June 2020: 100 days of KfW Corona aid: tens of thousands of companies benefit from federal support in the fight against the consequences of the pandemic (100 Tage KfW-Corona-Hilfe: Zehntausende Unternehmen profitieren von Unterstützung des Bundes im Kampf gegen Folgen der Pandemie) (
  • 11 August 2020: First half 2O20: KfW grants double (
  • 06 November 2020: KfW special programmes prologned (
  • 02 February 2021: KfW press release 2 Feb 2021 (
  • 25 March 2021: KfW press release 25 March 2021 (


Eurofound (2020), Direct participation for syndicate financing, case DE-2020-13/363 (measures in Germany), COVID-19 EU PolicyWatch, Dublin,

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.