On March 13, 2020, the BMF (Federal Ministry of Finance) adopted a package of measures to cushion the effects of the corona virus. The aim is to protect jobs, support companies and provide companies and businesses with sufficient liquidity to cope with the corona crisis.
The package of measures should include the following points:
1. the introduction of easier access conditions for short-time work benefits;
2. fiscal liquidity support through tax deferrals, reduction of advance payments and waiver of enforcement measures;
3. expansion of liquidity support programmes (the so-called “billion-euro shield”) to make it easier for companies to access cheap credit by
a) relaxing the conditions for the “KfW Entrepreneur Loan” and the “ERP Start-up Loan Universal”;
b) Conversion of the “KfW Loan for Growth” to facilitate access to syndicated financing;
c) Companies with < 5 billion turnover: case-by-case assessment;
d) doubling of the maximum guarantee amount at guarantee banks;
e) Opening of the so-called “large guarantee programme” even for enterprises not being located in structurally weak regions and
f) additional special programmes for companies that do not have easy access to existing support programmes (special programmes are now being notified to the EU Commission for approval).