Sci-Tech

KfW’s quick loans also for small and medium-sized enterprises: In November, the federal government expands its aid to Corona – the economy

“Light” blocking leads to new funding instruments. On Wednesday, it was revealed that the companies affected by the closure can receive compensation for up to 75 percent of their revenues. Federal Economy Minister Peter Altmaier (CDU) and Federal Finance Minister Olaf Scholz (SPD) have now announced that they will also open a KfW express loan for small businesses.

In the future, companies with up to ten employees may also apply for loans from domestic banks with 100% federal government responsibility. To date, loans of up to € 300,000 have been withheld from companies with more than eleven employees.

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However, Scholz and Altmaier did not provide details on the promised reimbursement. So far, it is clear that the regulation applies to companies directly affected by the closure, such as restaurants, cinemas, theaters or fitness studios.

Funding guidelines are still being prepared

Companies with less than 50 employees should generally receive compensation for 75 percent of the turnover they generated in the same month last year, ie in November 2019; Larger companies should receive up to 70 percent, with EU state aid law providing for further graduation depending on the size of the company.

The concrete form of the financing guidelines is still being worked out, Altmaier said. According to government circles, the bill basically works like this: the company’s own revenues are added together with other state support funds – such as benefits for short-term work or other corona aid; the gap, which will then remain up to 75 percent of the previous year’s revenue, will be covered by the new program.

The entrepreneur decides on the method of using the funds

For Peter Altmaier, these payments are “a matter of course for solidarity throughout the country.” Scholz spoke of “massive, previously unknown support services of this magnitude.” It is not yet clear when those concerned can apply. It will be published on the Internet, where there is also access to previous federal aid.

Procedural procedures through lawyers, tax advisors and business advisers need to be maintained. That worked. Overall, “aid should be provided as quickly and as widely as possible,” Altmaier said. Therefore, consider only total turnover and do not request information about individual items. The entrepreneur decides how the funds will be used.

Whether and how indirectly dependent companies, such as suppliers or logistics, are supported, is still at stake. For companies established after November 2019, a comparison with sales in October 2020 is used. The self-employed have a choice: they can also use the average sales from the previous year in 2019 as a reference framework for sales. The abuse is hampered by the fact that only companies affected by the measure receive money, Scholz said.

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