Support during the Corona crisis Being aware of company options and leveraging them

Rapid financial aid for small and medium-scale enterprises (SMEs)

The German government has launched a wide-ranging package of measures to stabilise the economy. In particular fast loans, which are to be granted without any risk assessment and for which the state assumes 100 percent liability, offer rapid assistance. Both the costs of acquiring assets as well as investments are to be subsidised. The precondition for this is that a company must have made a profit in 2019 or on average over the last three years. This is intended to ensure that only companies affected by the Corona crisis receive support. In addition to fast loans, KfW-Bank is offering additional credit facilities.

You will find a complete overview of credit opportunities in our Blog.

dhpg Corona Check: Standardised process to prepare for a meeting with the bank and help you file an application

dhpg will support you in applying for KfW loans and in preparing for a meeting with the bank with the dhpg Corona Check, which is founded on a thorough analysis of requirements and preconditions that have to be met in order to apply for subsidies:

  • The company is provided a list of information requirements
  • The data and facts sent to us are then assessed and the situation of the company analysed
  • Review of historical financial status: Analysis as to whether economic/financial problems came about prior to the Corona crisis (the cut-off date is generally 31 December 2019)
  • An action plan: management and team, market and customers, finances, organisation
  • Analysis of the business model applying managerial accounting methods and determination of the necessary capital and financing requirements 
  • Elaboration and refinement of the dhpg Corona Check
  • Support in communications with banks and in filing applications


What we have to offer our clients thus includes:

  • An action plan including notes on management and team, market and customers, finances, organisation
  • Management Summary: Brief summary of the most important findings produced by the review and analysis A presentation of the legal situation: Overview of the company's legal situation
  • A presentation of the company and the market environment: Elucidation of the business model and the impact of the Corona virus on the relevant market
  • Integrated budget planning: review of the balance sheet, profit and liquidity planning, in which we support you throughout the entire process: from analysis to implementation 
  • Planning liquidity needs: Estimation of financial resources required
  • Sustainability analysis of the business model: Testing the viability of the business model after the crisis with simulation of development and trend scenarios 
  • Final opinion and statement

Due to the current situation surrounding the corona virus and the recommendation that contact be avoided, the dhpg Corona Check is essentially performed without any meetings where actors are physically present. By means of telephone conference, dhpg ensures that its clients receive individual and personal advice by means of teleconference.

Additional possible measures if applications are rejected on grounds of creditworthiness

In order to avoid companies having to file for insolvency because subsidies pledged by the Federal government are not made available quickly enough, the obligation to file for insolvency has now been suspended until 30 September 2020. In order to be able to take advantage of this arrangement, the law requires that the Corona epidemic be the reason for the company's material insolvency and that there be reasonable prospects of a turn-around with regard to the company's illiquidity. This is imputed to be the case if a company was still solvent on 31 December 2019.

But what action should a company take if it does not meet the requirements for receiving the subsidies and suspension of the obligation to file for insolvency? Here lawmakers have provided for a possibility of "self-administered restructuring" (Sanierung in Eigenverwaltung). In this instance, the management remains at the helm of the company.

dhpg offers its clients a review of the following from an insolvency law perspective:

  • Discussion of how to proceed by telephone
  • Drafting and transmission of a list of required information
  • Review of business management accounts and legal corporate documents (annual financial statements, assessment of operational data, articles of association, inter-company agreements, etc.)
  • Review of special contractual agreements in individual cases (D&O insurance policy, general terms and conditions, payment agreements, supply contracts, etc.)
  • Identification of risks of liability and contestation under insolvency law 
  • Presentation of different options for actions

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