ERP-Gründerkredit – StartGeld

Program description

The ERP-Gründerkredit - StartGeld promotes investments and working capital (running costs) within the first 5 years of business activity. The maximum loan amount is up to €125,000 (max. €125,000 per project or max. €50,000 for working capital financing) to set up and run a business. The special feature: KfW assumes 80% of the loan default risk. In addition, the interest rate is subsidised with funds from the ERP Special Fund (European Recovery Programme).

The programme is aimed at start-ups, freelancers and small enterprises, including commercial social enterprises, with the intention of making a profit in Germany. Funding is provided for business start-ups and consolidation on a sideline or full-time basis up to 5 years after establishment.

Eligible measures are:

All investments that require medium- and long-term provision of funds and can be expected to lead to sustainable economic success (e.g. acquisition of machines, computers, software, operating and business equipment, intangible investments such as licenses and patents). Working capital financing is possible (including, for example, liquid funds, personnel costs, rents, expenses for marketing measures, trade fair participation, consulting costs), as is financing of materials and inventories.

Institution

KfW

Kreditanstalt für Wiederaufbau (KfW) is one of the world's leading promotional banks. Since 1948, it has been working on behalf of the Federal Government and the federal states to improve economic, social and ecological living conditions worldwide. KfW is a public law institution.

Funding period

The following term variants are available: Up to 5 years with a maximum of 1 grace year and a fixed interest rate for the entire term of the loan. loan term. 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 entire term of the loan.

Funding criteria

All forms of business start-up are eligible, i.e. the establishment or takeover of companies and the acquisition of an active shareholding. Funding is also available for a sideline business that is geared towards the main business in the medium term, as well as consolidation measures with a project start date within 5 years of the start of the business activity. A new business start-up can also be supported if there are no longer any liabilities from a previous self-employed activity.

Both natural persons and commercial enterprises are eligible to apply. A prerequisite for companies is that at least one partner fulfils the application requirements for natural persons.

Additional conditions

Basically, no equity capital is required. However, it is pointed out that the applicant should contribute his/her own funds if possible. The amount of own funds is taken into account in KfW's credit assessment.

Expenses for (commercial)

Pre-financing/Liquidity, Investment costs, Patents/Intellectual property rights protection, Material costs, Operating expenses, Personnel expenses, Marketing expenses

Funding focuses on

Start-up/Foundation & consolidation, Strengthening competitiveness

Funding conditions (commercial)

no equity required, house bank/financing partner required

Stage of the company/self-employment

prior to founding, up to 1 year after founding, up to 3 years after founding, up to 5 years after founding, company succession

Company Sizes

solo self-employed/one-man business, micro enterprise, small enterprise

Application type

House bank procedure

Application procedure/documents

The application must be submitted to KfW via the house bank or a financing partner. The loan application must be submitted before the project begins!

Customary bank collateral must be provided for the loan. The form and scope of the collateral must be agreed with the financing partner during the loan negotiations.

The applicant must present the focus of his/her entrepreneurial activity as well as the prospects of success of the project on the basis of suitable figures.

Information on the documents and details required for KfW's risk assessment can be obtained by completing the checklist, the Guide to Documents for Risk Assessment or at www.kfw.de/067 in the "Forms and Downloads" section.

Jury/Decision-making body

KfW examines the documents and decides on the funding.

Assistance/Downloads

Fact sheet - ERP Start-up Loan - StartGeld

On the KfW programme page, you can check in advance whether the ERP Start-up Loan - StartGeld is suitable for your planned project. Under the heading "How it works" you will also find an explanatory video on how to apply.

The KfW funding assistant can be used to prepare the application with the selected financing partner - so that the subsequent bank meeting will be quicker. Here you can find tips for the bank meeting.

Funded by

Credit Guarantee Facility: EU's COSME programme (Support for the Competitiveness of Enterprises) and EFSI (European Fund for Strategic Investments) established under the Investment Plan for Europe

Funding area

Germany

Funding source of the institution

EU, federal government