The Federal Ministry for Economic Affairs and Energy (BMWi) supports small and medium-sized commercial enterprises and freelancers with 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 companies or a stake in them,
• - for the purchase of assets from other companies (e.g. production facilities),
• - for operating resources (all running costs such as rent and salaries),
• - for inventories,
• - 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 operating and office equipment and
  • o the purchase of know-how, licenses and patents in order to be able to use new technologies.

You will not receive funding

• - if you are not investing in a regional funding 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-sure transactions, such as the purchase of your own company shares,
• - for debt rescheduling or extensions of existing loans,
• - for follow-up financing of projects that have already been started or completed,
• - if you are a start-up or your company has been in existence for less than 5 years,
• - if you purchase 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 acquire capital goods (e.g. plant, vehicles, machinery) via leasing contracts, the total costs of the investment less the residual values agreed in the leasing contracts are eligible. This regulation also applies to real estate leasing.

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

Eligible measures are

• - Investments
• - operating resources
• - Warehouses

Your individual interest rate depends on

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

You will receive particularly favorable interest conditions

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

You can initially only pay interest for up to 3 years after disbursement of the loan (redemption-free start-up period). This gives you greater financial leeway in the initial period after the investment.

You can choose the following loan terms for your project:

• - for the financing of working capital:
  • o up to 5 years term with a maximum of 1 redemption-free start-up year and a fixed interest rate for the entire term of the loan.
• - for the financing of warehouses:
  • o up to 5 years term with a maximum of 1 redemption-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 an investment in them:
  • o up to 5 years with a maximum of 1 redemption-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,
  • o up to 20 years 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 redemption-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,
  • o up to 20 years with a maximum of 3 grace years and a fixed interest rate for the first 10 years.

Once you have completed your investment, you must prove that you have spent all the money from the loan on your project.
You must keep all documents relating to the eligible costs.
You can repay all or part of the loan early. In this case, 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 grants for certain projects in some development areas. You can obtain further information on this from the state development institute or the development bank in your federal state.
You can combine the funding from this program with other funding from the Kreditanstalt für Wiederaufbau (KfW).