BERLIN, April 6 (Xinhua) -- The German government approved more financial support for small and medium-sized enterprises (SMEs) and introduced comprehensive immediate loans in response to the challenges of the coronavirus crisis, the Federal Ministry for Economic Affairs and Energy (BMWi) announced on Monday.
SMEs, depending on their size, would be enabled to obtain loans of up to 800,000 euros without risk assessment and with 100 percent state guarantee, according to the BMWi.
Federal Minister of Finance Olaf Scholz said SMEs should be supported so "that they get through the difficult times, that they are still there economically when things start to improve again."
Companies applying for the immediate loans had to be free of financial difficulty by the end of 2019 and must have been in an "orderly economic situation" at that date, BMWi noted.
SMEs were "the backbone and the heart of our economy," stressed Peter Altmaier, Minister for Economic Affairs and Energy.
The Federation of German Industries (BDI) on Monday called the decision a "strong signal" to SMEs, saying it was "vital for the survival" of SMEs to obtain loans quickly and non-bureaucratically.
Two weeks ago, the federal government approved to provide 50 billion euros as direct grants for small companies of all economic sectors as well as the self-employed. Additional financial support in the form of an immediate loan by Germany's development bank KfW could be provided after final approval by the European Union, BMWi added.
"The 100-percent exemption from liability and the waiver of the usual risk assessment will ensure that those companies that have only run into difficulties as a result of the coronavirus pandemic will quickly receive a loan," said Guenther Braeunig, chief executive officer (CEO) of KfW. (1 euro = 1.08 U.S. dollars)
