New funding program to support start-ups and company successors
A new promotional program for start-ups and business successors was launched on 1 November 2024. In cooperation with the German guarantee banks, the Federal Ministry of Economics and Climate Protection and the Federal Ministry of Finance, KfW is introducing the ERP promotional loan for start-ups and succession. A cooperation agreement between KfW and the development banks ensures the implementation of the program.
The offer makes it easier for founders and company successors to access financing and offers maximum security for the participating house banks.
Advantages of the new program
The new funding offer is intended to strengthen SMEs and facilitates access to financing for start-ups and successions. The offer is particularly attractive for house banks: thanks to a 100% guarantee from the Bürgschaftsbanks, they are completely relieved of the risk of loan default. The federal government supports this guarantee with an 80 percent counter-guarantee, while KfW provides the loan funds from the ERP Special Fund. This enables house banks to offer their customers favorable conditions.
Program overview: Funding for start-ups and successors
The ERP promotional loan for start-ups and succession is aimed at founders, company successors and takeovers. Investments, takeovers and working capital financing are supported. Financing shares of up to 35% with a maximum of 500,000 euros per project are possible – without the obligation to provide collateral. Applicants benefit from low interest rates and can combine the program with other funding measures. Two term variants are available, which can be flexibly adapted to different financing requirements.
Simple application process promised
Applying for the ERP promotional loan should be straightforward. Interested parties first contact their house bank, which submits the application via the central platform kapital.ermoeglicher.de. Once the application has been checked by the guarantee bank and KfW, approval is fully automated.
With this new funding offer, the German government aims to provide important impetus for the start-up and succession landscape.
Advantages for founders and successors summarized
- Easy financing: The loan helps to obtain money for founding or taking over a company.
- No collateral required: Founders do not have to provide any collateral of their own.
- Favorable interest rates: The interest rates for the loan are low thanks to special subsidies.
- Risk-free for banks: KfW and the federal government cover the risk, making it easier for banks to decide to grant the loan.
What is the loan for?
- Investments, such as machinery or business premises
- Takeovers, if someone wants to take over an existing company
- Working capital, i.e. money to finance ongoing business operations
Our opinion
If the implementation is so uncomplicated, this funding program would be a good financing supplement for anyone who wants to start their own business or take over a company. Federal Minister of Economics Dr. Robert Habeck emphasizes “practical and unbureaucratic solutions for founders and successors”. Let’s hope that the path for founders and successors is as free and uncomplicated as promised – and that bureaucracy really is just a spectator on the sidelines this time.