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Source: BUS Sachsen-Anhalt (Linie6PLus)

Apply for a favourable loan for investments by companies and freelancers in structurally weak regions

Description

The Federal Ministry for Economic Affairs and Energy (BMWi) provides funding for small and medium-sized commercial enterprises and freelancers for investments in assisted areas.

You can receive funding of up to EUR 3 million for all investments for which medium to long-term financing is required:

  • - for the purchase of other businesses or an equity stake in them,
  • - for the purchase of assets from other companies (e.g. production equipment),
  • - for working capital (all running costs such as rent and salaries),
  • - for stocks of goods,
  • - for new and expansion investments as well as the restructuring of production processes or service procedures, for example for
    • o the purchase of land and buildings,
    • o commercial construction costs,
    • o the purchase of machinery, plant, vehicles and equipment,
    • o fixtures and fittings, and
    • o the purchase of know-how, licences and patents to enable you to use new technology.

You will not receive funding:

  • - if you do not invest in a regionally assisted area;
  • - if your company has more than 250 employees (regardless of annual turnover),
  • - for construction measures in the area of "assisted living",
  • - for trust constructions,
  • - for so-called "in-itself" transactions, such as the purchase of your own company shares,
  • - for debt rescheduling or extensions of existing loans,
  • - for follow-up financing of projects already started or completed,
  • - if you are a start-up or your business has been in existence for less than 5 years,
  • - if you buy assets from third parties who have a legal or economic relationship with you, for example the purchase of previously leased land
  • - if you have already started the measure before submitting the application.

If you purchase capital goods (e.g. plant, vehicles, machinery) under leasing contracts, the total cost of the investment less the residual values agreed in the leasing contracts is eligible. This rule also applies to real estate leasing.

You can finance up to 100 percent of the eligible costs through the loan.

Eligible measures are:

  • - Investments
  • - operating equipment
  • - stock of goods

Your individual interest rate depends on

  • - your location,
  • - your economic circumstances (creditworthiness) and
  • - the quality of your collateral.

You will receive particularly favourable interest conditions,

  • - if your company has fewer than 50 employees and annual sales of no more than EUR 10 million,
  • - if you invest in the regional development areas in the federal states.

You can initially pay only interest for up to 3 years after the loan has been disbursed (grace period). This gives you greater financial leeway in the initial period after the investment.

You can choose the following loan term variants for your measure:

  • - for the financing of working capital:
    • o up to 5 years term with a maximum of 1 repayment-free start-up year and a fixed interest rate for the entire loan term.
  • - for the financing of warehouses:
    • o Up to 5 years term with a maximum of 1 repayment-free start-up year and a fixed interest rate for the entire term of the loan,
    • o up to 10 years with a maximum of 2 grace years and a fixed interest rate for the entire term of the loan.
  • - for the acquisition of companies or a stake in them:
    • o up to 5 years term with a maximum of 1 repayment-free start-up year and a fixed interest rate for the entire term of the loan,
    • o up to 10 years with a maximum of 2 grace years and a fixed interest rate for the entire duration of the loan,
    • o up to 20 years term with a maximum of 3 grace years and a fixed interest rate for the first 10 years.
  • - for the financing of investments:
    • o Up to 5 years term with a maximum of 1 repayment-free start-up year and a fixed interest rate for the entire loan term,
    • o up to 10 years with a maximum of 2 grace years and a fixed interest rate for the entire term of the loan,
    • o up to 20 years term with a maximum of 3 grace years and a fixed interest rate for the first 10 years.

When you have completed investment, you must prove that you have spent all the money from the loan on your measure.
You must keep all documents relating to the eligible costs.
You can repay all or part of the loan early. If you do, you will have to pay an extra fee (early repayment penalty).

Applications for funding are processed by the Kreditanstalt für Wiederaufbau (KfW).

You have no legal claim to the approval of the subsidy.

Notes:
You can receive subsidies for certain projects in some funding areas. You can obtain further information from the state development institute or the development bank of your federal state.
You can combine the funding from this programme with other funding from the Kreditanstalt für Wiederaufbau (KfW).

Applications may be submitted by

  • Small and medium-sized commercial enterprises (SMEs)
    • with less than 250 employees and a maximum annual turnover of EUR 50 million
    • with headquarters in Germany or abroad
    • which have been in existence for at least 5 years
    • which are majority privately owned
  • Sole proprietors or freelancers
    • in Germany or abroad
    • which have been in business for at least 5 years
  • Companies, sole traders and freelancers
    • which rent or lease commercial real estate and/or commercial/freelance movables
    • for which the main purpose of the letting and/or leasing is the generation of profits

Further requirements:

  • the location of your investment measure must be in a regional development area
  • You must be creditworthy
  • Your measure must be expected to be a sustainable economic success
  • The term of the loan must be at least 2 years.

When applying, you must submit the following documents to the house bank/financing partner:

  • for small and medium-sized enterprises (SMEs):
    • Simplified Self-Declaration SME (if your business is stand-alone and not intertwined with other businesses) or.
    • Self-declaration SME (Annexes 3-5) with information sheet on SME definitions (if your company is not independent and is interlinked with other companies)
  • in the case of de minimis aid:
    • "De minimis" declaration
  • in the case of support under the General Block Exemption Regulation (GBER):
    • Investment aid for small and medium-sized enterprises (SMEs)

Not applicable

  • Application:
    • unlimited
    • before the start of the measure
  • Loan call deadline: within 12 months of loan approval, in one sum or in instalments
  • Proof of use of the funds via your house bank/financial partner after full disbursement of the loan

KfW usually needs 2to 3 weeks to process your application.

Note:
Once you have submitted your application, you can start the measure at your own financial risk.

  • Forms: yes
  • Online procedure possible: no
  • Written form required: yes
  • Personal appearance required: yes (at the financing partner)

Notice:
You will receive the original forms from your financing partner. You fill out the forms together.


Your application for funding is submitted in writing to the Kreditanstalt für Wiederaufbau (KfW) via your house bank/financial partner.

  • First check the map of assisted areas to see whether the location of your investment measure is in a structurally weak region. The map of assisted areas can be found in the information sheet on the KfW funding programme website.
  • Your measure must be located in a region marked in colour.
  • You will need a financing partner through whom you will then submit your application to KfW. A financing partner can be a bank, savings bank or financial intermediary.
  • Select your financing partner and make an appointment for a consultation. If you are looking for a financing partner, you can use the online consultation request on KfW's website.
  • At the consultation appointment, your financing partner will check whether your planned measure meets all the requirements and whether you are creditworthy.
  • You complete the loan application together with your financing partner. Your financing partner will inform you which other documents you need for your application.
  • Your financing partner submits the completed loan application to KfW. KfW reviews your application and decides on the funding.
  • You will then be informed by KfW via your bank/financing partner whether your loan has been approved.
  • Conclude the loan agreement with your financing partner and start with the measure. KfW will pay you the loan amount on demand.
  • When you have completed the measure, you must prove to your financing partner that you have spent all the money from the loan on the measure. You submit this proof to your financing partner.
  • Your financing partner checks and confirms your proof and forwards it to KfW.

Federal Ministry for Economic Affairs and Energy (BMWi)

The text was automatically translated based on the German content.

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