How did Germany "rescue and support" startups in Covid-19? Part 2

» How did Germany "rescue and support" startups in Covid-19? Part 2

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How did Germany "rescue and support" startups in Covid-19? Part 2Besides financial support, the gorverment provided other kinds of support to startups.Germany responded quickly to reduce the difficulties and dangers for workers working during the epidemic. The Kurzarbeit program is designed to stabilize the working situation of an enterprise's employees. Specifically, businesses will let employees work from home or cut about 30% of working time, while employees will still receive 60% of the salary for the reduced working time and 100% of the salary for normal operation time. Thus, the employee will only receive a reduction of about 10% of the salary, while the working time is reduced up to 30%. Combined with the EUR 2 billion assistance package affecting investment issues, German startups have received practically and timely support during the epidemic. Besides, the German Government does not set a binding clause on the amount of support a startup can receive, so a German startup can fully receive support from the Federal Government and receive support from other State Government programs, start-up organizations, or the COVID-19 epidemic support program. The German government also encouraged many large enterprises, lenders, and commercial banks to adopt policies to support startups. On March 13, 2020, the Federal Ministry of Economy and Finance presented measures to coordinate with banks to deal with the COVID-19 crisis. This policy is implemented throughout Germany from cities and states with the support of banks. BurgschaftsBank Berlin (BBB), for example, has extended its general condition for default guarantees, increasing the guarantee limit to EUR 2.5 million (previously EUR 1.25 million). The Berlin Investment Bank (IBB) emergency aid package for companies and individuals of up to 1 million EUR and a period of up to 5 years has supported financial restructuring for SMEs, ensuring "available" this very difficult time. Or the Bank of Investment and Development Hamburg also launched an emergency aid package for SMEs. Specifically, 2500 EUR for individuals, 5000 EUR for small businesses with up to 10 employees, 10000 EUR for small businesses with up to 10 employees, 250000 EUR for small businesses with up to 250 employees. In Hessen, the Bank of Economy and Infrastructure Hessen (WIBank) also provides loans from 25,000 to 150,000 for SMEs (maximum 25 employees) and small and freelance workers. Many banks in Germany also offer quick and low-interest loans. By that way, banks accept higher risks to ensure the survival of startups. This is considered a highly effective measure. Since the economic and financial crisis of 2008/2009, guarantee banks and their partners have helped SMEs access loans in difficult conditions quickly and favorably. Therefore, it can be said that in addition to the state's liquidity support packages, small and medium enterprises can completely access loans quickly, receive timely support when needed at the locality through banks, state programs. This is similar to the way Germany develops a startup ecosystem, from city to state to country. This ensures both efficiency and synchronous development among localities across the country. The German startup has raised a total of 6.2 billion Euros in 2019, more than 3 times higher than in 2018. This shows the potential and rapid growth of German startups. Although 2020 is a year with many changes as the epidemic continues to have complicated and unpredictable developments, with the early support of the German Government through a series of programs, the startup ecosystem in Germany is expected to continue its role as one of the most attractive destinations in Europe for investors and startups around the world. Here is the 1st part of this article: http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=300

Besides financial support, the gorverment provided other kinds of support to startups.

Germany responded quickly to reduce the difficulties and dangers for workers working during the epidemic. The Kurzarbeit program is designed to stabilize the working situation of an enterprise's employees. Specifically, businesses will let employees work from home or cut about 30% of working time, while employees will still receive 60% of the salary for the reduced working time and 100% of the salary for normal operation time. Thus, the employee will only receive a reduction of about 10% of the salary, while the working time is reduced up to 30%. Combined with the EUR 2 billion assistance package affecting investment issues, German startups have received practically and timely support during the epidemic. Besides, the German Government does not set a binding clause on the amount of support a startup can receive, so a German startup can fully receive support from the Federal Government and receive support from other State Government programs, start-up organizations, or the COVID-19 epidemic support program.
The German government also encouraged many large enterprises, lenders, and commercial banks to adopt policies to support startups. On March 13, 2020, the Federal Ministry of Economy and Finance presented measures to coordinate with banks to deal with the COVID-19 crisis. This policy is implemented throughout Germany from cities and states with the support of banks. BurgschaftsBank Berlin (BBB), for example, has extended its general condition for default guarantees, increasing the guarantee limit to EUR 2.5 million (previously EUR 1.25 million). The Berlin Investment Bank (IBB) emergency aid package for companies and individuals of up to 1 million EUR and a period of up to 5 years has supported financial restructuring for SMEs, ensuring "available" this very difficult time. Or the Bank of Investment and Development Hamburg also launched an emergency aid package for SMEs. Specifically, 2500 EUR for individuals, 5000 EUR for small businesses with up to 10 employees, 10000 EUR for small businesses with up to 10 employees, 250000 EUR for small businesses with up to 250 employees. In Hessen, the Bank of Economy and Infrastructure Hessen (WIBank) also provides loans from 25,000 to 150,000 for SMEs (maximum 25 employees) and small and freelance workers. Many banks in Germany also offer quick and low-interest loans. By that way, banks accept higher risks to ensure the survival of startups. This is considered a highly effective measure. Since the economic and financial crisis of 2008/2009, guarantee banks and their partners have helped SMEs access loans in difficult conditions quickly and favorably. Therefore, it can be said that in addition to the state's liquidity support packages, small and medium enterprises can completely access loans quickly, receive timely support when needed at the locality through banks, state programs. This is similar to the way Germany develops a startup ecosystem, from city to state to country. This ensures both efficiency and synchronous development among localities across the country.
The German startup has raised a total of 6.2 billion Euros in 2019, more than 3 times higher than in 2018. This shows the potential and rapid growth of German startups. Although 2020 is a year with many changes as the epidemic continues to have complicated and unpredictable developments, with the early support of the German Government through a series of programs, the startup ecosystem in Germany is expected to continue its role as one of the most attractive destinations in Europe for investors and startups around the world.

Here is the 1st part of this article: http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=300