Financial support for companies in Germany. Check out what the state and the federal states offer.

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Paul Reich

Paul Reich

Financial support for companies in Germany. Check out what the state and the federal states offer.

All businesses based in Germany can benefit from a very wide range of business support programmes. This set includes several hundred programmes offered by the European Union, the Federal Government, the Länder and is aimed mainly at small and medium-sized enterprises. This is also important for those TSL companies that have established their businesses in Germany or are planning to do so.

The majority of the funds offered from the federal budget apply to the entire territory of the Federal Republic of Germany. A special characteristic was given to new grants, for which varied investment allowances, specific forms of depreciation, regional support or special credit lines are applied.

Federal aid measures are generally allocated for setting up new businesses and supporting small and medium-sized enterprises. 

Recently, it has become increasingly important to support innovative products and production processes and, as part of its energy policy, to save energy and reduce carbon emissions. State aid for the SME sector is implemented mainly in the following forms:

– support for the establishment of new businesses,

– support for investments,

– support for the protection and improvement of the environment,

– granting credit sureties,

– support for exhibition and export activities,

– support for vocational training and further education,

– support for employment development,

– support for R&D.

The amount of investment support in Germany depends essentially on the individual federal states. A regional investment support agency was set up in each of the Länder.

Favourable loans

Each municipality, depending on its wealth, has the possibility to offer subsidies and grants to foreign entrepreneurs. Another available option is the ERP, the so-called Start-up Funds, which is a small and medium-sized enterprise support programme implemented by Kreditanstalt für Wiederaufbau. It offers long-term loans with favourable fixed interest rates for all types of economic investments. Support can be provided to manufacturing companies as well as to craftsmen, trading companies or service providers.

The Start-up Funds programmes can cover up to 80% of investment costs. In many cases, the support offered by KfW, i.e. support programmes for the SME sector and regional aid programmes, appropriate for the state in which the entrepreneur has its seat, can be combined. As a rule, the maximum amount of a repayable grant is €5 million. The programme is implemented and operated by Kreditanstalt für Wiederaufbau.

Capital grants for companies in Germany

For young enterprises that focus on advanced technology, a programme of equity capital has been created. KfW has special ‘start-up’ funds, of which both start-ups and existing companies can receive up to €3 million.

Further funding options:

– subsidies from BAG (Community tasks: improving the regional structure of the economy),

– specific aid programmes of the individual Länder,

– EU support.  

Get in touch with us if you want to know more about financing opportunities in Germany.

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