Bavaria's Minister of Economic Affairs, Hubert Aiwanger, justified the energy liquidity loan with the explosive rise in energy costs. The gas price cap came too late for many businesses, and the federal government's special loan program did not go far enough. A key weakness of the federal program was the clause that companies would only receive money if the share of energy costs for their own consumption in 2021 was at least three percent of annual revenue, he said. Aiwanger:
“That is why we as a Free State rely on our own credit product from LfAto provide even better support to affected companies in this difficult situation. This approach has already worked well during the coronavirus crisis and enabled many businesses to continue operating."
Energy liquidity loan of up to 10 million euros
Companies and members of the liberal professions experiencing financial difficulties due to rising energy prices should be eligible for the energy liquidity loan. Annual revenue must not exceed €500 million. A self-declaration by the applicant, followed by a plausibility check by their bank, is required.
"This enables a quick and unbureaucratic application process. In the current situation, we cannot burden companies with complicated applications. The need for action is great. According to KfW, almost two-thirds of all medium-sized businesses across Germany report burdens due to increased energy prices,"
says Aiwanger.
"Added to this are the price increases for intermediate products, which are also due to energy prices. In August alone, industrial producer prices rose by over 45 percent compared to the previous year."
The energy liquidity loan amounts to up to 10 million euros and runs for up to 10 years.
