KfW Instant Loan Applications Exceed 14,000 in First 100 Days
In its first 100 days, KfW received over 14,000 applications for its Instant Loan program, totaling approximately EUR 4.6 billion. Launched on April 14, 2020, the loan aims to provide rapid liquidity support to small and medium-sized enterprises impacted by the coronavirus crisis.
Berlin, Germany – KfW has received more than 14,000 applications for its Instant Loan program within its first 100 days, representing a total volume of approximately EUR 4.6 billion. The program was launched on April 14, 2020, to help alleviate the economic consequences of the coronavirus crisis for small and medium-sized enterprises (SMEs).
The KfW Instant Loan is designed to provide fast, unbureaucratic loan assistance to companies with more than ten employees. Detlev Kalischer, head of the SME and Private Clients division at KfW, stated, "The Instant Loan reaches the enterprises that are particularly affected, and only one in five of the loan applications we receive falls into this category. This demonstrates the targeted support for companies in the broad SME sector." He also highlighted the program's success due to cooperation with lending banks.
Developed and implemented in a very short timeframe, the Instant Loan is a new program, distinct from the KfW Special Programme 2020 which was based on existing KfW products. Its primary goal was to offer swift liquidity support to SMEs during the pandemic.
Applications for the KfW Instant Loan are submitted through regular banks and savings banks. To expedite the process, KfW assumes 100 percent of the credit risk, backed by a guarantee from the German Federal Government. Companies can apply for up to EUR 500,000 (10-50 employees) or EUR 800,000 (over 50 employees). The absence of a risk assessment by the customer's bank or KfW, and the elimination of collateral requirements, significantly speeds up loan disbursement.