DE: The ERP Economic Plan Act 2022

Mar 18, 2022 Benn-Ibler Rechtsanwälte

To strengthen the German economy, the Bundestag has now passed the European Recovery Program (ERP) Economic Plan Act for the calendar year of 2022. Funding for small and medium-sized enterprises is to be significantly increased, thus facilitating opportunities for future investments, in particular the path to a digital and climate-neutral economy, in order to ensure the competitiveness of companies.

The ERP Special Fund has been promoting the German economy since 1950. It is a special fund from the ERP administered by the Federal Ministry for Economic Affairs and Climate Protection. It was provided on the basis of the Marshall Plan as a support programme from the USA for the reconstruction of the German economy. The agreement designated DM 6 billion as a special funds. These were so-called revolving loans - financing funds that are reallocated after they have been repaid. The economy thus receives recurring funds. The focus of the promotion is on strengthening the competitiveness of small and medium-sized enterprises and the liberal professions so that they are not structurally disadvantaged in their financing situation compared to large enterprises. The ERP Economic Plan Act, which is passed annually, determines the use of the ERP Special Fund for the respective following year and thus creates the legal basis for the promotional activities.

In order to effectively help small and medium-sized enterprises out of the Corona crisis, they will in future have their own promotional programme at their disposal to finance domestic and foreign projects as well as start-ups and company takeovers at low interest rates. The new promotional loan for SMEs is intended to offer low-interest loans to enterprises with an annual turnover of up to EUR 50 million, a balance sheet total of up to EUR 43 million and a maximum of 249 employees. The German-owned investment and development bank KfW offers banks the option of assuming part of the credit risk of 50 percent for companies that have been on the market for at least three years in order to facilitate a positive credit decision.

Bundestag Printed Material 20/336 (23.12.2021)