KfW quick loans also for small businesses: The federal government expands its corona aid in November – economy

The “light” lockdown leads to new funding instruments. On Wednesday it became known that companies affected by the closure can get reimbursement of up to 75 percent of their sales. Federal Minister of Economics Peter Altmaier (CDU) and Federal Minister of Finance Olaf Scholz (SPD) have now announced that they will also open the KfW express loan for small businesses.

In the future, companies with up to ten employees can also apply for loans issued through the house banks with 100 percent liability by the federal government. So far, the loans of up to 300,000 euros have been withheld from companies with more than eleven employees.

However, Scholz and Altmaier did not provide details on the promised reimbursement of sales. 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 drawn up

Companies with fewer than 50 employees should generally be reimbursed 75 percent of the turnover that they generated in the same month last year, i.e. November 2019; Larger companies should receive up to 70 percent, whereby the EU state aid law stipulates further gradations depending on the size of the company.

The specific design of the funding guidelines is currently still being worked out, said Altmaier. According to government circles, the bill basically works like this: the company’s own revenues are added together with other state aid funds – such as short-time working allowances or other corona aid; the gap, which then remains up to 75 percent of the previous year’s sales, will be reimbursed from the new program.

The entrepreneur decides how to use the funds

For Peter Altmaier, these payments are “a matter of course for solidarity across the country”. Scholz spoke of “massive, previously unknown support services of this magnitude”. It is not yet clear when those affected can submit an application. He will on the Internet to be placed where the previous federal aid is also available.

The procedural route via lawyers, tax consultants and business consultants is to be retained. This has proven itself. Overall, “help should be provided as quickly and as extensively as possible,” said Altmaier. Therefore, only consider the overall turnover and do not ask for information about individual items. The entrepreneur decides how the funds will be used.

Whether and how indirectly dependent companies such as suppliers or logisticians are supported is still being negotiated. For companies founded after November 2019, the comparison with the sales of October 2020 is used. Self-employed persons have a right to choose: they can also use the average previous year’s sales in 2019 as a reference framework for sales. Abuse is prevented by the fact that only the companies affected by the measures receive money, so Scholz.

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