Blog May 14, 2020

Covid-19: new fast loan for micro-enterprises and start-ups in Bavaria

The LfA Förderbank Bayern offers financial support for all micro-enterprises with up to 10 employees. This is a fast loan, which is applied for with 100 percent indemnity from your own house bank. The LfA loan is intended for micro-enterprises and start-ups in Bavaria that have run into cash flow problems as a result of the corona crisis.

By taking this step, the Bavarian State Government is supporting regional micro-enterprises and start-ups that have come into financial difficulties due to months of restrictions. The LfA loan for micro-enterprises is an important measure to strengthen enterprises with a small number of employees and freelancers. Until now, small businesses have not been able to benefit from corona credit programmes due to their lack of creditworthiness. The Free State of Bavaria is now assuming 100% of the risk for the LfA fast loan.

"The recent further increase in risk relief for the LfA considerably expands its possible courses of action to be able to provide extensive bank support to companies under pressure. We will not let up in our efforts to curb the negative economic impact of the corona pandemic in Bavaria" – Bavaria's Minister of Economic Affairs and Chairman of the LfA Board of Directors Hubert Aiwanger at the annual press conference on 4 May 2020.

What is being funded?

The LfA loan for micro-enterprises covers all current operating costs, wages and salaries, scheduled repayments etc., in short: all the enterprise’s liquidity requirements up to 31 December 2020.

Who is eligible to apply?

All businesses with a commercial focus, sole proprietors with up to 10 employees and freelancers who have a permanent place of business or branch office in Bavaria can apply. Start-ups with the participation of private equity investors can also be supported by the LfA loan for micro-enterprises, regardless of the amount of the participation.

What are the criteria for application and payment?

  • The company must have been on the market since at least 01 October 2019. 

  • The company has recently made a profit – either in 2019 or on average over the last 3 years. 

  • As at 31 December 2019, the company did not qualify as a company in difficulty under the EU definition.

  • No risk assessment, free unscheduled repayment possible 
  • Companies with up to 5 employees, freelancers: fast loan possible up to EUR 50,000 
  • ompanies with up to 10 employees, freelancers: fast loan possible up to EUR 100,000


The rapid introduction of the new loan shows what kind of financial support companies settled in Bavaria benefit from. Whether it’s LfA loans for micro-enterprises or corona protection package loans, the wide range of support programmes and emergency aid makes Bavaria the ideal business location for your business start-up even in crisis situations.

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