Corona Crisis: Free State of Saxony grants Liquidity Aid to Small Businesses

Created by Sven Vollstädt |

The Free State of Saxony intends to provide financial support to small companies and freelancers with up to 5 employees and headquarters or permanent establishment in Saxony who have got into financial difficulties in connection with the Corona crisis.

According to the Saxon Ministry of Economics, a special program is planned for this purpose, under which 

  • interest-free, subordinated liquidity support loans of up to EUR 50,000, in exceptional cases up to EUR 100,000 
  • with a term of up to eight years, 
  • which are made available free of repayment for the first three years,

are to be handed out. Corresponding applications for such a liquidity loan should be submitted to the Sächsische Aufbaubank - Förderbank - (SAB). SAB currently assumes that it will be possible to submit an application in the course of the coming week. According to SAB's homepage, the necessary details are currently being clarified and the conditions are being created to enable consultation and applications for the special program to be submitted.

If, however, the Federal Government or the EU were to set up a support program with similar objectives for small companies and freelancers during the term of the program, such a program would have to be used first.

Saxony's Minister of Economics Dulig (SPD) is aware that the liquidity support is a first step, but that it may only postpone the problems into the future. Dulig told broadcaster MDR Aktuell on 19 March 2020 that the extent to which it would be impossible to repay loans later would become clear over time. He was aware that Saxony had to be flexible with regard to repayments.

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