Person sits at a desk and taps a calculator


The European Commission yesterday evening approved a wider provision of low-interest loans. The decision now allows promotional banks of the Länder to grant loan programmes with the same favourable conditions as those already offered by the KfW development bank under the KfW Special Programme.

Federal Minister for Economic Affairs and Energy, Mr Peter Altmaier, said: "I am very pleased that the European Commission has now also very quickly approved the nationwide scheme for low-interest loans so that promotional banks of the Länder can also grant more favourable lending conditions. Alongside the KfW 2020 Special Programme, this is another important building block for providing companies with fast access to more liquidity. Now the Länder can also set up loan programmes throughout the country that apply the good promotion terms offered by the KfW Special Programme, which is already approved, and thus help companies to obtain more liquidity quickly and at favourable interest rates”.

The KfW 2020 Special Programme was launched on 23 March 2020. Under this programme, some 2,432 loan applications for a total amount of around €9.8 billion have already been submitted. The Special Programme is available to small and medium-sized enterprises and large companies alike. The lower interest rates and simplified risk assessment that it provides for loans of up to €3 million will ease some of the burden on the economy. By assuming a higher share of the financial risk of up to 90% for operating expenses and investments by small and medium-sized enterprises, KfW is making it easier for banks and savings banks to grant loans. The improved conditions can be offered thanks to the adoption of the European Commission's Temporary Framework for state aid measures, which came into force on 19 March 2020.

The programmes are available to companies that are temporarily experiencing financing difficulties due to the coronavirus crisis. More specifically, this means that all companies that were not in difficulty on 31 December 2019 can apply for a loan. Financing can be provided for investments and operating expenses.