Startseite » Federal government sets up rescue package for large companies
Federal government sets up rescue package for large companies
17. April 2020
The Federal Government has published the details of the establishment of the Economic Stabilisation Fund (WSF). The federal government is setting up a rescue fund for large companies. The fund has a guarantee framework of 400 billion euros. It will also include additional credit authorizations of 100 billion euros to strengthen the capital of companies and another 100 billion euros to refinance the KFW special programs.
The aim of the Economic Stabilisation Fund is to preserve liquidity for companies that were healthy and competitive before the Corona crisis. This decision also serves to finance KfW’s entrepreneurial loans for large enterprises. To do so the Federal Government will raise the necessary funds on the capital market.
For which companies is the Economic Stabilisation Fund (WSF) relevant?
The programme is aimed at companies that meet at least two of these three criteria:
Balance sheet total of more than 43 million euros
more than 50 million Euro sales Revenue
more than 249 employees on an annual average
What is the advantage of the WSF?
The program grants the house banks an 80 percent indemnity against liability upon request. This should enable loans to be granted quickly and unbureaucratically.
Up to what amount does the credit line extend?
The credit limit is a maximum of EUR 1 billion per group of companies and is regulated by three parameters.
25 percent of annual sales 2019
twice the wage costs 2019
the current liquidity requirements for the next 12 months
Which entrepreneurial measures are eligible?
Eligible measures are investments, warehouses and operating materials. The acquisition of assets from other companies, e.g. through a company takeover or economic participation, is also eligible.
Are there exceptions for smaller companies?
Smaller companies can be included in the programme on a case-by-case basis, provided they are important for the critical infrastructure.
We advise all large enterprises affected by the crisis to examine whether and to what extent they have access to KfW funds. Our team of experts will be pleased to support you.