MIL OSI Translation. Region: Germany / Deutschland –
Source: Federal Ministry for Economic Affairs and Energy The federal government is significantly expanding the existing participation offers of the medium-sized investment companies (MBGen) in cooperation with the federal states. Medium-sized companies have better opportunities for recapitalization in the Corona crisis. The aim is to strengthen the equity base of medium-sized companies. To this end, the Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Finance have decided to make it considerably easier for medium-sized investment companies to take over investments. To this end, the federal government’s counter-guarantee declarations have been adapted and improved. Federal Minister of Economics Altmaier: “We are not leaving our companies and their employees alone in this serious crisis and are expanding our range of support again. With the measures we have now united, we are specifically strengthening the equity base of our medium-sized companies. This is a very important help for small and medium-sized companies, which stands alongside the comprehensive liquidity aid from the federal government, which we have already decided in the past few months. “Federal Minister of Finance Scholz:” With these measures, we are particularly supporting small and medium-sized companies, they are Backbone of our economy. We strengthen the equity of medium-sized companies. This is a clever instrument that helps in exactly the right place during a crisis. The support benefits up to 1000 companies and their employees. That is another important contribution so that we can get through this crisis well. ”Smaller and medium-sized companies usually have a good equity base and, before the beginning of the Corona crisis, also had mostly a good equity cushion. However, many of you are now affected by a sharp drop in sales due to the corona pandemic, which is also increasingly burdening your equity situation. Therefore, Federal Minister of Economics Altmaier and Federal Minister of Finance Scholz want to support, through a joint recapitalization initiative, above all those companies that, despite a successful business model, have got into financial difficulties due to Corona, but have positive prospects for continuation. MBGen offer equity capital as a useful addition to traditional bank loans. With equity financing (mostly in the form of a silent partnership), the economic equity ratio can be increased and the balance sheet ratio of start-ups as well as small and medium-sized companies improved. Together with the equity-strengthening effect of short-time working allowance, bridging aid, November / December aid and the support of small and medium-sized companies via Pillar II of the start-up program, there is now broad support for small and medium-sized companies on the equity side .Measures for MBGs in detail: So that as many small and medium-sized companies as possible can benefit from the program improvements and the corona-related consumption of equity can be compensated, the following measures are temporarily implemented with immediate effect: a. The previous upper limit for silent partnerships will be increased from EUR 1 million to EUR 2.5 million, and the approval requirement previously required in the decision will no longer apply if the previous normal amount is exceeded by the federal government. The funds made available through equity capital can be used flexibly for any financing requirement, for example also for working capital financing. Increased counter-guarantees from the federal and state governments to the guarantee banks reduce the MBG’s own risk, which enables medium-sized companies to be actively promoted with equity capital even in difficult times. Combination with other aid programs should be expressly permitted, in particular with the KfW Schnellkredit. Those interested can find information on the websites of the medium-sized investment companies in the individual federal states. An overview can be found at www.vdb-info.de/träger
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