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.

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 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.

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

Involvement

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.

Sources

• 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) (www.dgb.de)
• 07 April 2020: KfW coronavirus aid: loans for companies (www.kfw.de)
• 04 May 2020: Merkblatt Sonderprogramm "Direktbeteiligung für Konsortialfinanzierung" (www.kfw.de)
• 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) (www.kfw.de)
• 11 August 2020: First half 2O20: KfW grants double (www.kfw.de)