Default guarantees of the Bavarian Guarantee Bank

The default guarantees of the Bürgschaftsbank Bayern support small and medium-sized enterprises as well as start-ups in Bavaria in realizing investments, working capital, and business acquisitions despite insufficient collateral. As a guarantee, the Bürgschaftsbank assumes up to 80% of the credit risk – up to 70% for working capital loans – thereby ensuring a solid collateral class. Projects in the sectors of trade, crafts, hotel and restaurant industry, as well as horticulture, are eligible for funding. Key criteria for approval include the economic viability of the project, equity capital structure, and a rating with a one-year default probability of no more than 3%. Continuous application submission via the house bank is possible, whereby the Bürgschaftsbank does not provide retroactive coverage for already disbursed loans and excludes restructuring and acceptance credits or financing of entertainment businesses.

The guarantee can be granted up to an amount of €1.25 million, thus providing financial relief for new and expansion investments, consolidations, and business acquisitions. The online application is submitted via the web-based e-application system of the Bürgschaftsbank Bayern, supported by a user manual and a conditions table for cost overview. For quick decisions, the special programs “100 × 10” with a commitment within ten working days for guarantee amounts up to €100,000 and “BBB-Express” with feedback on the day of application submission are available. This enables Bavarian companies to implement their financing projects efficiently while sustainably strengthening their creditworthiness.