Source: BUS Sachsen-Anhalt (Linie6PLus)

Description

Funding objective

The funding loan will be used to develop or produce new or substantially improved products, processes or services that are innovative.

Who is eligible for funding?

Eligible applicants are:

Small and medium-sized enterprises (SMEs) with
- less than 250 employees and
- an annual turnover of no more than 50 million euros or an annual balance sheet total of no more than 43 million euros.
larger medium-sized enterprises with
- less than 500 employees and majority privately owned and
- a group turnover not exceeding 500 million euros.
freelance professionals, e.g. doctors, tax consultants, architects

The companies or freelancers must be able to present at least two annual financial statements.

Not eligible are:

restructuring cases and companies in difficulty
applicant enterprises in which KfW holds a direct interest of at least 10%.
enterprises whose activities do not meet the requirements of the InnovFin guarantee
facilities for the use of renewable energies
Debt rescheduling and follow-up financing of projects already completed as well as follow-up financing and prolongations or
Acquisition of companies/shareholdings

What is supported?

Investments - capitalizable in fixed assets (e.g. purchase of machinery, equipment, vehicles and facilities; commercial construction costs, etc.)
Working capital (e.g. running costs, purchase of current assets, etc.)
Inventory

How is funding provided and what conditions apply to the KfW Entrepreneur Loan Plus:

Type of support

low-interest loan

Interest rate for the loan

The interest rate is fixed for the entire term of the loan.
The programme interest rates are based on the development of the capital market and the creditworthiness of the borrower. Particularly favourable interest rates apply in the SME window.
The loan is committed with a customer-specific interest rate within the framework of the maximum interest rate of the respective price class applicable on the day of commitment.
The interest rate is determined by the borrower's bank, taking into account the borrower's financial circumstances (creditworthiness) and the value of the collateral provided for the loan.

The loan is classified in the creditworthiness and collateral classes specified by KfW.

Amount of the promotion

The maximum loan amount is: up to EUR 7.5 million per project
up to EUR 15 million per group of companies
The minimum loan amount is: EUR 25,000

Disbursement of the subsidy

100 % of the loan amount

Term of the subsidy

working capital and inventory financing
- Up to 5 years with a maximum of 1 grace year (5/1).
Investment financing
- Up to 10 years with a maximum of 2 grace years (10/2).

Repayment of the loan amount

after the grace period in equal quarterly instalments.

Collateral for the loan

Standard bank collateral for the loan (agreement with the principal bank).
KfW grants the on-lending credit institution a 50 percent indemnity against liability.

Prerequisites

The company must be innovative. If a company fulfils at least one criterion from the following catalogue of criteria of the InnovFin SME Credit Guarantee Facility at the time of application, it is classified as innovative:

The company

has grown by an average of more than 20% per annum over the last three years,
has used at least 80% of the loan amount to finance research and development costs,
has used the loan amount for new or substantially improved products, processes or services,
has contributed a specified portion of the research and development expenses,
has received grants, loans or guarantees from European or national research and/or innovation programmes in the last 36 months,
received an innovation award in the last 24 months
obtained an industrial property right in the last 24 months,
needs financing to enter a new market.

Required documents

The KfW portal provides the necessary application forms, evidence and documents.

Merkblatt KfW-Unternehmerkredit Plus

Fees (costs)

There are no fees or costs for you to apply for the loan.
You will be charged interest on the loan.
You may have to pay a commitment fee of 0.25 percent per month on amounts not yet drawn down, starting two banking days and one month after KfW's loan commitment.

Deadlines

Submit your application to a credit institution of your choice before the start of the project to be financed.

Do not start your project before concluding the loan agreement.

Applications / Forms

Formulare für KfW-Unternehmerkredit Plus

Procedure

Get advice from your house bank as early as possible, which will guide you through the loan process.

Your bank will complete the loan application with you and forward it
forwards your application and the other required documents to KfW Bankengruppe. KfW will check whether you meet the requirements for funding.

If the loan is approved, you can draw down the amount via your bank and start with your project.