The year 2020 was particularly marked by the allocation of Bavaria's own Corona aid: A total of 1.5 billion euros in support was pledged, of which more than 835 million euros went to the Special programs LfA Quick Loan, Corona Protection Shield Loan, and Corona Loan – Non-Profits, as well as the optimized Universal Loan with Liability Indemnity and Acute Loan programs, were approved. In addition, 105 guarantees totaling almost €615 million were approved. Together with approximately 4,900 repayment deferrals totaling around €75 million on existing loans, LfA has pledged over €1.5 billion in coronavirus aid for Bavaria as a business location.
More money in start-up support
In addition to crisis management, parts of the economy also continued to operate as usual, such as the start-up activity. According to the LfA The volume of commitments for start-up funding increased compared to 2019, reaching approximately €480 million. The increase was particularly strong towards the end of the year. In the last four months of the year alone, the development bank committed over €210 million in funding. In addition, LfA provided equity financing to Bavarian founders and entrepreneurs through BayBG Bayerische Beteiligungsgesellschaft mbH and Bayern Kapital GmbH—both companies within the LfA Group.
Bavaria's Minister of Economic Affairs and Chairman of the LfA Administrative Board Hubert Aiwanger explained:
"I am encouraged by the fact that a large number of founders and entrepreneurs are investing proactively in the future of their businesses, even in times of crisis. We are therefore not only focusing our financial assistance, funding, and consulting services on acute crisis management, but are also specifically supporting the Bavarian economy in seizing the opportunities offered by digitalization and sustainable, innovative technologies."
Otto Beierl, Chairman of the Board of LfA, adds:
"We are pleased that, despite the pandemic, our financing offerings for start-ups, growth, innovation, and energy and the environment have also been in strong demand among Bavarian SMEs. In 2021, we will continue to vigorously help companies emerge from the crisis well and successfully overcome the challenges resulting from structural change."
