As a result of the shutdown and decline in demand, many companies have constantly decreasing liquidity despite short-time working compensation for their running costs. A package of complementary measures is designed to prevent fundamentally solvent companies from encountering difficulties.
Bridging loans with government guarantee
Bridging loans with a government guarantee can be taken out quickly and without administrative expense. The repayment period amounts to five years with an optional extension of two years ( hard cases).
There are two types of government-guaranteed loans, which can be applied for up to 10% of annual turnover:
The currently applicable interest rates are variable and may be adjusted by the Federal Government. In addition, taking out a COVID19 loan leads to certain restrictions in the entrepreneurial freedom of action, such as a ban on dividends and similar.
Special rules apply to companies with a turnover of more than 500 million.
Deferred payment of social security contributions, corporate income tax and value added tax
As a further measure to prevent liquidity problems, payment periods for social security contributions, corporate income tax and VAT can be extended without incurring interest on defaults.
Conclusion & practice experience
Loan applications are processed extremely quickly and the loans are usually paid out the next working day, the current time record is nearly 30 minutes.
If you have any questions about the liquidity support, our team will be glad to assist you at any time.