Reorganisation of promotional products for small and medium-sized enterprises

• New promotional programme for small and medium-sized enterprises (SMEs), as well as one for large mid-sized companies
• Improved conditions for young SMEs and for SME projects in regions eligible for promotion
• KfW Entrepreneur Loan, ERP Start-up Loan – Universal and the ERP Regional Promotion Programme set to expire

The German Federal Ministry for Economic Affairs and Climate Action and KfW are reorganising the promotional programmes for small and medium-sized enterprises at the beginning of 2022; SMEs as well as larger mid-sized companies each will be able to access a dedicated promotional programme for the low-interest financing of projects in Germany and abroad as well as for establishing and acquiring companies. The new ERP Promotional Loan for SMEs offers low-interest loans from the ERP Special Fund under attractive terms to all companies with annual turnover of up to EUR 50 million, with no more than 249 employees and total assets of no more than EUR 43 million. For young companies that have been on the market for less than five years, and for SME projects in regions eligible for promotion, the conditions are even better. For larger companies with annual turnover of up to EUR 500 million, the KfW Promotional Loan for large mid-sized companies is being introduced with low-interest terms, yet the terms do not include any aid. The credit limit is a maximum of EUR 25 million per project for both programmes. Depending on the purpose of the financing, a term of up to 20 years can be arranged. KfW offers on-lending banks and savings banks the option of assuming 50% of the credit risk (exemption from liability) for companies that have been on the market for at least three years in order to facilitate loan approvals.

Udo Philipp, State Secretary at the German Federal Ministry for Economic Affairs and Climate Action: “We support small and medium-sized enterprises as they face the major challenges of our time, particularly transitioning to a climate-neutral and digital economy. The simplified promotional landscape and improved terms of our ERP and KfW promotional loan programmes allow our SMEs to finance their projects at attractive and economical terms. We will continue to provide particularly strong support for young companies, and for businesses in the regions eligible for promotion.”

KfW Chief Executive Officer , Stefan Wintels, says: “Customer-oriented, transparent and easily accessible – those are the standards we set as we reorganised our promotional programmes for small and medium-sized enterprises. The recovery from the pandemic and the sustainable transformation of the economy will require companies to make numerous investments of significant amounts in the coming years. We will provide particular support for SMEs in Germany with a clear and needs-based offer of promotional programmes.”

The new programmes will replace the KfW Entrepreneur Loan, the ERP Start-up Loan – Universal and the ERP Regional Promotion Programme. The KfW Entrepreneur Loan and ERP Start-up Loan – Universal programmes as part of the KfW (coronavirus) special programme will continue until the latter expires. The ERP Digitalisation and Innovation Loan and its subordinate products, the ERP Mezzanine Financing for Innovation and the ERP Capital for Start-ups, as well as the ERP Start-up Loan, will remain unchanged.

The ERP Special Fund (European Recovery Program) has been promoting the German economy for more than 70 years now. It originates from European Recovery Program funds and is administered by the Federal Ministry for Economic Affairs and Climate Action. The funding focuses on small and medium-sized enterprises, which are often at a structural disadvantage compared to large enterprises when it comes to financing. Overall, ERP funding makes a significant contribution to strengthening the competitiveness of small and medium-sized enterprises as well as the liberal professions, and helps to create new jobs.

Find out more at
www.kfw.de/inlandsfoerderung/Companies/Investitionen-und-Wachstum