Favorable interest rates for startups: KfW improves conditions

KfW has increased the ERP Start-up Loan – StartGeld – from €125.000 to €200.000. This allows start-ups to finance investments and working capital. KfW also assumes 80 percent of the default risk for the borrower's bank.

This article is part of the special feature GründerNavi – for founders and young companies

KfW is increasing the maximum funding amount for its ERP Start-up Loan – StartGeld . Effective immediately, founders, successors, and young entrepreneurs (with a maximum of five years in business) can receive low-interest loans of up to €200.000 , instead of the previous €125.000. In addition, KfW is increasing the maximum possible amount for working capital financing from €50.000 to €80.000.

Small businesses are eligible to apply . Both full-time and part-time entrepreneurs can apply for the start-up loan through their primary bank. KfW assumes 80 percent of the default risk for the bank where the entrepreneurs apply for the start-up loan. "This makes it easier for companies to access the loan," reports the federal government's development bank. Applicants can use the loan to finance, for example, buildings, equipment, machinery, goods, and/or spare parts.

"With this, we are making a visible contribution to revitalizing the start-up scene and demonstrating that KfW stands firmly by the side of entrepreneurs. Now is the time for bold steps," says Melanie Kehr, KfW board member responsible for domestic financing.

The companies must have fewer than 50 employees and an annual turnover of no more than ten million euros or an annual balance sheet total of no more than ten million euros.

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Source: KfW

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