New funding offer for founders and successors

A new, low-interest development loan has been available for founders and successors since November 1. What's special about this loan is that it completely relieves the bank of any risk. Cooperation partners include KfW, the guarantee banks, and the Ministries of Economics and Finance.

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

For those considering self-employment or taking over a business, there's good news: The state-owned development bank KfW and the German guarantee banks have signed a cooperation agreement for a new funding program , which can be applied for at local banks starting November 1, 2024. The new ERP promotional loan aims to provide a strong boost to start-up and succession financing, according to a joint press release. The program is designed to facilitate access to financing while simultaneously offering maximum security to participating banks.

The special feature: The banks are completely relieved of the credit default risk by a 100% guarantee from the respective guarantee bank . The Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Finance provide an 80% federal counter-guarantee for this.

KfW , in turn, refinances the commercial banks. It provides the loan amounts at reduced interest rates from funds of the ERP special fund. The commercial banks therefore do not need to use their own refinancing sources.

Applicants do not have to provide any security

Up to 35 percent of a project can be financed, with a maximum loan amount of €500.000 . Applicants are not required to provide collateral. Thanks to funds from the ERP special fund and the assumption of the loan default risk by the guarantee banks and the federal government, they benefit from favorable interest rates. This program can be combined with other funding programs and guarantee instruments offered by the guarantee banks.

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Plan your loan extension in good time!

You can choose between two duration options:

• 15 years with five grace years and a fixed interest rate for the first ten years or
• ten years with two grace periods and a fixed interest rate for the entire loan term

The following costs are eligible:

• Capital expenditure
• resources
• warehouse
• Acquisition and participation

The required documents can be viewed here (checklist of the guarantee banks).

Interested founders and successors should contact their bank

The handling is "as simple as can be," says Manfred Thivessen , board member of the Association of German Guarantee Banks (VDB): "Borrowers go to their usual bank – the cooperation partners take care of everything else."

"I am pleased that with the new ERP promotional loan we have created a program for start-ups and successions that offers attractive financing options at favorable conditions," says Federal Minister of Economics Robert Habeck.

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