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Federal Government approves the KfW Quick Loan for SMEs
17. April 2020
The government has taken new measures to help medium-sized companies in the crisis: The Federal Government decides on the KfW Quick Loan 2020, which we will present to you in the following.
The aid is aimed at small and medium-sized companies that need quick help in the current corona crisis. Other aid, which would be paid under different conditions, would of course continue to exist, said Finance Minister Scholz.
KfW Quick Loan 2020
This is a promotional loan for acquisition and running costs. This enables companies to secure liquidity during the crisis.
The state development bank KfW covers 100 percent of the liability risk. This relieves the burden on the respective house banks and ensures a faster loan commitment, as no risk assessment by the bank is required.
Who can apply for the KfW Quick Loan?
All companies that employ between 11 and 249 people and have been on the market since January 2019 are eligible to apply.
In addition, these companies must have an orderly financial situation until the cut-off date as of 31 December 2019.
In addition, they must have made a profit in 2019. Alternatively, proof of a profit on average over the last 3 years is also sufficient.
What is the maximum credit limit of the KfW Quick Loan?
Companies applying for the KfW Quick Loan will receive a loan of up to three months‘ turnover in 2019.
There is also a further cap:
Companies with up to 50 employees receive a maximum of 500,000 euros
Companies with more than 50 employees receive a maximum of 800,000 euros
Term and interest rate of the KfW Quick Loan
The Federal Government offers a credit period of ten years. The annual interest rate is 3 percent.
According to KfW, the bank is working full steam to provide the appropriate form so that you can apply for the loan. We will keep you informed at this point.
Politicians have apparently recognised that many companies fall through the ranks of the previous KfW funding regulations. That is why the new funding programme is absolutely useful and to welcome. We assume that many companies that were previously not eligible for financing will now be able to receive this liquidity Support.