Factsheet for measure
DE-2022-20/2290
–
Updated
– measures in Germany
Expanded loan guarantees for companies affected by the war in Ukraine
Erweiterte Bürgschaftsprogramme
Background information
Against the background of the war in Ukraine, the German Federal Government has rolled out (financial) aid measures for businesses affected by the war. On 8 April 2022, the Federal Government adopted measures to help companies suffering from the negative impact of the war in Ukraine and/or sanctions against Russia and Belarus. Apart from the special loan programme hosted by Germany's promotional bank called Kreditanstalt für Wiederaufbau (KfW), guarantee schemes from the German Federal Government or the German federal states were also expanded. Latter are temporary and will expire on 31 December 2022 (as set out in the European Commission’s Temporary Crisis Framework).
Content of measure
The German Federal Government and the German federal states have expanded their guarantee scheme for companies negatively affected by the war in Ukraine. Companies applying for a working capital or investment loan at their house bank and are asked for a loan guarantee can apply at the large-scale guarantee scheme under certain circumstances. First of all, companies must require a guarantee that is worth over €20 million in structurally weak regions. Outside structurally weak regions, this sum rises to over €50 million. Secondly, applicants must prove that they have been negatively impacted by the sanctions against Russia or Belarus and/or the war in Ukraine. Negative impacts can include one of the following circumstances:
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decline in revenue due to lost sales markets,
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production losses or facility closure in either the Ukraine, Belarus or Russia,
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production downtime as raw materials and primary products are lacking, or
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suffering strongly from the rising energy costs and proving that the applicant’s annual turnover in 2021 included at least 3% of energy costs.
If applicants fulfil these criteria, their working capital or investment loan application can be guaranteed under the large-scale guarantee scheme (in which the federal states cooperate with the Federal Government). Loans for small and medium-sized companies can also be guaranteed at the federal states level (with no involvement of the Federal Government), if guarantees do not exceed the of €2.5 million.
Companies can apply for guarantees since 29 April 2022. However, guarantees can only be granted as soon as Germany received programme approval from the European Commission.
Updates
The following updates to this measure have been made after it came into effect.
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28 October 2022
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Against the background of the continuing war in Ukraine, the progamme was prolonged by one year until the end of 2023.
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Use of measure
No information yet.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Local / regional government
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Local funds
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
Social partners are usually consulted on larger measures related to social or labour market issues. At the moment, it is not known, if consultations took place for this particular measure.
Views and reactions
Unknown.
Sources
