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FUNDING PROGRAMS

programmeFunding programs

The money is on the road …
… you just need to know where!

With hundreds of funding programs, the European Union, the federal government and the federal states governments support the businesses, self-employed people, and private persons too. There are available several billion Euros for financing ventures.

Money for free or at very low interest rates are available for investors who, for example, establish, acquire, expand, shift change, streamline and modernize a company. If the entrepreneur, for example, hires employees, takes part to trainings, qualifies its employees, works together with partners or other companies or organizations, participates to fairs and exhibitions or takes consulting: All these measures will be funded by the state.

There is hardly an investment project for which no funding is provided.

Our trusted advisors check, in your best interest, the various funding programs of the EU, federal and state governments, and inform you about the best financing options before we assist the setting up of a business or an investment project.

Every fourth entrepreneur finances his investment by development funds …

Development loans and grants are very important for financing the investments of German companies. This results from a recent business survey. According to this study, nearly every fourth company has used various funding opportunities (funding loans, grants, allowances, guarantees, etc.) for financing its corporate investments. In this respect, allowances and grants are preferred by the businesses in the new federal states. In the old federal states, from the many support offers, the loans from the reconstruction loan corporation (KfW) are most commonly used.

At the time being, there are in Germany between 1500 and 2000, various support programs, aimed at different people, companies, institutions or regions.  In this respect, a large number of different types of subsidies are granted, such as:

Grants

For the payees, grants are most interesting. These are non-repayable benefits granted by the state. Grants are always subject to conditions to be met by the payee. If they are not fulfilled the grant plus interest has to be reimbursed.

Low-interest loans

The interest rate of low-interest loans is always below the usual market rate. The difference is paid by the state. Thus, this can be for corporate financing a very favourable borrowed capital. Some low-interest loans are granted together with an additional release from liability. In this case, the bank is released in a certain amount of the liability for the loan. Depending on the loan program and the region, the release lays between 40% and 100% of the loan amount. If the borrower fails to pay back the loan, the public sector (i.e. the federal or federal state government) takes the credit risk.  However, this risk is only taken over towards the leading commercial bank. In any case, the borrower is personally liable for the credit taken by him.

Guarantees

If the collaterals to provide financing are insufficient, there is also the possibility to get a guarantee from the public sector. For this purpose, in the federal states were set up guarantee banks that may guarantee the loans. The guarantee is usually granted up to 80% of the loan amount. The risk for the remaining amount is taken by the lending commercial bank. However, the bank may demand any additional collateral from the borrower.

Warranties

State warranties are mainly granted for export transactions. In this respect, there may be agreed both single coverage for a particular contract, as well as export package warranties for different foreign customers mainly in the case of short payment terms.