Economy & Politics

Companies can now submit applications for funds

Economy Minister Nicole Hoffmeister-Kraut knows that the pandemic is a major challenge for the economy. Photo: dpa / Christoph Schmidt

The state fund comprises a total of one billion euros. He wants to strengthen small and medium-sized companies.

Stuttgart – The European Commission has now approved the Baden-Württemberg Equity Fund. Baden-Württemberg companies can now apply for support. The aim of the investment fund, which has a total volume of one billion euros, is to strengthen the equity of small and medium-sized companies during the Corona crisis. Economics minister Nicole Hoffmeister-Kraut welcomes this step: “The longer the crisis lasts, the clearer it becomes for everyone involved that credit alone is no longer enough. The focus must be more on securing the equity base. “

In October, the state parliament passed the “Act to Establish a Participation Fund for the State of Baden-Württemberg”. Now, after approval by the European Commission, companies can receive capital-based funds for a limited period. The fund is an important additional aid for companies for whom the situation becomes increasingly difficult the longer the pandemic lasts, says State Finance Minister Edith Sitzmann.

Minimum amount of 800,000 euros

The investment fund is aimed specifically at companies in Baden-Württemberg with between 50 and 250 employees. The prerequisite for funds from the investment fund is, among other things, a reported annual turnover of no more than 50 million euros or an annual balance sheet total of no more than 43 million euros in the last completed financial year before January 1, 2020 the applicant company is of great importance for the economic stability of the state of Baden-Württemberg.

The minimum amount of a recapitalization measure per company is 800,000 euros. Companies that make use of the investment fund should make a contribution to stabilizing production chains and securing jobs.

The L-Bank will review the submitted applications. The participation council made up of representatives from the Ministry of Economics and Finance then decides on the applications.

Current reports, background information worth knowing and useful tips – in our dossier we bundle all articles on Corona.

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