business succession - Taubert: Guarantee helps in securing the future of companies
State-guaranteed loans are in high demand in Thuringen, according to Finance Minister Heike Taubert. An example of this is the SK-tronic GmbH company in Magdala in the Weimar Land, which was looking for a new shareholder when its long-term CEO stepped down due to age reasons. One of the former managing directors took over. The loan necessary for the share purchase was secured by a guarantee from the state.
SK-tronic GmbH is a service provider in the assembly of printed circuit boards and PCB mounting. Currently, there are 45 employees there.
The need for guarantees from the state for business loans has significantly increased, as shown in figures from the ministry. This year, approximately 101 million Euros in guarantees have been given out for the commercial economy - more than in the entire previous year.
Requirements have suddenly increased
In total, risks of around 21 million Euros have been taken on this year for the promotion of the commercial economy in Thuringen - almost exclusively for small and medium-sized enterprises. In addition, a global guarantee of over 55 million Euros was granted for a participation fund.
"State guarantees help with financing new businesses and company takeovers in Thuringen, when securities are lacking", said Taubert. They are a flexible funding instrument.
As an example for a company expansion, the ministry named the Gitterwerk GmbH in Magdala. The company produces components made of quartz glass, which are used worldwide in high-performance lasers and ultrashort pulse lasers. The financing of a new building in Magdala is being supported by the state.
Heike Taubert, the Finance Minister of Thuringia, mentioned that state-guaranteed loans are in high demand in the state. Due to the resignation of its long-term CEO due to age reasons, SK-tronic GmbH in Magdala sought a new shareholder. The necessary loan for the share purchase was secured by a guarantee from the state.
The demand for guarantees from the state for business loans has significantly increased, with approximately 101 million Euros being given out this year, more than in the entire previous year.
In Thuringia, around 21 million Euros have been taken on this year to promote the commercial economy, mainly for small and medium-sized enterprises. Additionally, a global guarantee of over 55 million Euros was granted for a participation fund.
State guarantees, as mentioned by Taubert, are flexible funding instruments that help in financing new businesses and company takeovers in Thuringia when securities are lacking.
The Gitterwerk GmbH in Magdala, which produces components made of quartz glass used worldwide in high-performance lasers and ultrashort pulse lasers, is an example of a company expansion being supported by the state through financing.
