KfW instant loans for medium-sized enterprises

The German federal government has put together a further extensive protection package for medium-sized enterprises in view of the challenges of the coronavirus crisis. Based on the adjusted Temporary Framework published by the European Commission on 3 April 2020, the German federal government is introducing extensive KfW instant loans for medium-sized enterprises.

At their core, KfW instant loans for medium-sized enterprises include the following measures:

Provided that a medium-sized enterprise showed profits in 2019 or on average over the last three years, an instant loan with the following basic points is to be granted:

• The instant loan is available to medium-sized enterprises with more than ten employees that have been active on the market since at least 1 January 2019.
• The credit volume per company is up to three monthly turnovers from 2019, with a maximum of EUR 800,000 for companies with more than 50 employees, and a maximum of EUR 500,000 for companies with a workforce of up to 50 people.
• The company is not allowed to have experienced financial difficulties before 31 December 2019 and is required to demonstrate that its financial condition was in order at that point in time.
• A current interest rate of 3% with a term of ten years.
• The bank is released from 100% liability by KfW, hedged by a guarantee from the German federal government.
• The credit approval process does not involve additional credit risk assessment by the bank or KfW. This enables loans to be granted quickly.

The KfW instant loan can start upon approval by the European Commission.