Sparkasse Mainz starts paying out Corona aid for businesses and retail customers

Sparkasse Mainz is now implementing aid through development loans for businesses and self-employed persons affected by the Corona crisis. Since Monday, 23. March 2020 applications from the first phase of the aid package of the federal government and the state of Rhineland-Palatinate are possible via Sparkasse Mainz. The first applications were already processed and forwarded by the savings bank 24 hours after the aid programs went into effect. Among other things, the Kreditanstalt fur Wiederaufbau (KfW) in the course of the support measures has significantly expanded the existing programs that have been introduced. In addition, the savings bank provides its own loan funds for this purpose.

Time is of the essence for businesses

Thorsten Muhl, Chairman of the Board of Sparkasse Mainz

"We will do our part as quickly and comprehensively as possible to limit the economic consequences of the Corona pandemic and will stand by our corporate customers," emphasizes Thorsten Muhl, CEO of Sparkasse Mainz. Time is a decisive factor for many companies in this regard. Against this background, Thorsten Muhl makes it clear: "Where we get the green light for the KfW loans in principle, but it is too tight for the affected farms in terms of time until disbursement, we will go forward from our own funds. We expect to be able to make the first payments in this way as early as this week."

The entire team of the savings bank works with high pressure on the treatment of an already now very high number of inquiries from the middle class.

KfW loans up to 3 million euros significantly accelerated

KfW has greatly expanded existing liquidity assistance programs to make it easier for companies to access credit even in difficult times. These are mainly the KfW-Unternehmerkredit for companies, sole proprietors and freelancers that have been in existence for more than 5 years and the ERP-Grunderkredit Universell for younger companies, freelancers and founders.

For all sizes of companies, these programs offer loans of up to €1 billion for investments and working capital as a special KfW program, and currently exempt house banks from up to 90 percent liability. These offers should be available to companies that are now experiencing major financing difficulties due to the Corona crisis, but were still healthy at the end of 2019. The Sparkasse Mainz supports the KfW with a risk assessment, which is taken over by the KfW. In the case of loans of up to 3 million euros, this can significantly speed up the approval process.

Pre-financing also for solo entrepreneurs and small businesses

Michael Weil, Member of the Board of Sparkasse Mainz

In addition to the KfW loan programs, the federal and state governments are currently preparing special assistance for solo entrepreneurs and small businesses. These will take the form of grants amounting to 9.000,- Euro up to a staff size of 5 employees and 15.000,- Euro granted for a staff size of 6 to 10 employees. The state of Rhineland-Palatinate announced that it would provide additional subsidized loans for companies with up to 30 employees.

Michael Weil, member of the Board of Management of Sparkasse Mainz emphasizes: "Our colleagues at the development banks will do everything in their power to disburse the funds from the respective programs as quickly as possible. If there should be a waiting period due to the expected high number of applications, we as Sparkasse Mainz are ready to step into the breach. We will then also provide pre-financing for small businesses and the self-employed from our funds to ensure their liquidity until the federal and state grants and loans flow in."

Special loan program of Sparkasse Mainz helps private customers

Due to the effects of the Corona pandemic, private customers are also potentially threatened by short-term liquidity bottlenecks. "In the coming weeks, it is conceivable that some of our customers will lose their jobs as a result of the current situation or will have to cope with short-time working allowances. In these cases we offer an instant loan in the amount of 5.000,- Euro, which can also be made repayment-free for up to 12 months, depending on the customer's wishes, irrespective of the general legal regulations that are currently being discussed," announces Thorsten Muhl. This measure is deliberately not developed as a consumer loan, since it is not about the classic car or furniture financing here. "With this offer, we also want to enable our private customers what is currently being created primarily for companies: A short-term liquidity assistance to survive the first difficult months of the crisis."

Sparkasse Mainz informs corporate and private customers via its blog at sparkasse-mainz.de/corona with the latest news on the institute's services, on funding opportunities for SMEs, and on issues relating to money management and the economic consequences of the pandemic.