Covid-19: German Federal Support Measures

A short overview for internationally active companies
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Quick and unbureaucratic measures to overcome the coronavirus crisis

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The Federal Government has decided on numerous state aid measures to help the German economy to overcome the Corona crisis. They concern small and medium sized companies as well as large ones, but also the so-called solo-selfemployed and many more who are economically affected by the Corona crisis. In the following article we give you information about the governmental support in detail.

According to the Finance Ministry's stability program, the measures taken by the German Federal Government in order to handle the Corona crisis will burden the public budgets with approximately 450 billion EUR. The federal and state governments will provide additional guarantees of almost 820 billion EUR. But what does this mean for small companies and for larger companies? For self-employed and for start-ups? For employees and the health system?

Small companies, self-employed and start-ups

For small companies, self-employed and start-ups the Federal Government provides 50 billion EUR in the form of direct subsidies that do not have to be paid back. In detail, for companies with up to five employees the Government grants a subsidy of 9.000 EUR and for companies with up to ten employees a subsidy of 15.000 EUR. This is supplemented by financial programs in the federal states to varying degrees.

Furthermore, the Government allocates 7.5 billion EUR for a facilitated access to basic security of self-employed workers.

Moreover, the KfW reconstruction bank presents low-interest loans, whereby the Federal Government takes over up to 100 percent of the default risk. For public venture capital investors there are two billion EUR granted for financing rounds for start-ups.

Medium-sized and larger companies

For medium-sized and larger companies the Kfw reconstruction bank provides low-interest loans, too. Fast loans are also possible, where the Federal Government bears the default risk for companies with 11 to 49 employees up to a maximum of 500.000 EUR and from 50 employees up to a maximum of 800.000 EUR.

In addition, the Federal Government opened an Economic Stabilisation Fund with 100 billion EUR for capital measures and equity investments and 400 billion EUR for liquidity guarantees.


Extended short-time allowance proved to be a key support for employment during the financial crisis of 2008/2009, and it continues to play a key role now. Companies can partially compensate for loss of work and loss of pay. The Federal Employment Agency pays 60 percent of the lost wages or 67 percent for households with at least one child.

Employees have implified access to basic security without a financial audit and in addition to the child supplement. They also can get partial compensation for loss of earnings due to childcare and bonus payments due to the Corona crisis in the form of tax-exempt up to 1 500 EUR. Also, parental allowance months in systemically important occupations can be postponed.

Health system

The Federal Government provides a central procurement of protective equipment for hospitals and medical practices. On top of that, around two billion EUR are spent for more intensive care beds in hospitals and the procurement of ventilation equipment. For postponed treatments the health system gets financial support of 2.8 billion EUR as compensation and another 55 billion EUR for not yet defined measures are planned.

EU Initiative

In addition, the EU launched a Coronavirus Response Investment Initiative (CRII) with a total of 37 billion EUR to combat the pandemic in the following sectors of the economy: health care, SMEs and employee support. Since April, 1st,  the application of rules for faster and more flexible use of EU cohesion funds is in place. This applies retroactively to expenditures that Member States have made and continue to make since February to combat the crisis.

Your company is internationally active and you want to quickly inform your customers and employees about current regulations on the Corona crisis? Therefore you can find an additonal selection of various Internet sites which inform in different languages.

Integration Commissioner

The Federal Government provides information on current regulations on the corona virus in various languages (including German, English, French, Turkish, Russian, etc.). Among other things, it also contains speeches by Chancellor Angela Merkel.

Federal Centre for Health Education

Besides hygiene routines you will also find leaflets and information graphics for free download.


WDRforyou regularly creates videos e.g. in English, Arabic and Persian on its YouTube channel on the subject of corona virus.

Handbook Germany

Daily updated information can be viewed in different languages with a click on the globe and are divided into different categories such as "Corona virus and work".


Porträtfoto Sabrina Netzer
Sabrina Netzer Referatsleiterin Süd- und Südostasien, Pazifik | APA: Australien und Asien-Pazifik-Konferenz der Deutschen Wirtschaft (APK)