Guarantee

Default Guarantees of the Guarantee Bank of Lower Saxony

The Bürgschaftsbank Niedersachsen provides guarantees for SMEs, start-ups, and freelancers of up to 80% of the loan amount (max. €2 million). Applications can be submitted at any time through the primary bank.

Business Financing Consulting Business Establishment

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Grant criteria

Application Deadline: Ongoing
Application level: Advanced
Region: Lower Saxony
Company size: SME
Funding amount: Up to €2,000,000
Funding rate: 80%

Funding objective

Securing credit risks for start-ups and business foundations, business successions, business expansions, working capital and guarantee loans, as well as leasing contracts through the assumption of default guarantees.

Non-eligible expenses

  • Refinancing or debt restructuring loans

Eligible to apply

  • Companies
  • Founders

Funding requirements

  • Registered office or establishment in Lower Saxony
  • Compliance with the EU SME definition
  • Lack of sufficient bank securities

Documents required for application

  1. Identification documents or legitimacy verification (GwG)
  2. Articles of association
  3. Annual financial statements of the last two to three years
  4. Current business management report including previous year comparison
  5. Profit plan for at least two fiscal years
  6. Self-disclosure/asset statement
  7. Income tax assessment/declaration
  8. Professional career
  9. Justification/brief description of the project
  10. Capital requirements planning/investment schedule
  11. Financing plan
  12. Business plan (for start-ups)
  13. Consent to SCHUFA credit report

Evaluation criteria

  • Compliance with SME criteria
  • Promising project
  • Standard bank collateral

Description

The default guarantees provided by the Bürgschaftsbank Niedersachsen grant small and medium-sized enterprises, start-ups, and freelancers in Lower Saxony access to financing resources when customary bank collateral is insufficient. Through a guarantee covering up to 80% of the loan amount (maximum €2 million), credit risks for start-ups, business successions, business expansions, working capital and guarantee loans, as well as leasing contracts, are secured. This security improves creditworthiness with the primary bank, enabling financing projects to be realized more quickly and on more favorable terms. Applications can be submitted at any time via the digital financing portal or traditionally through the primary bank.

Eligible for funding are companies headquartered or established in Lower Saxony that meet the EU SME definition and cannot provide sufficient own collateral. Restructuring or refinancing loans are excluded. The application process requires, among other documents, identification proofs, articles of association, annual financial statements from previous years, business management reports with prior year comparisons, profit and capital requirements planning, as well as a business plan and consent to a SCHUFA credit check for start-ups. Selection is based on compliance with SME criteria, the project's success potential, and customary bank collateral. This comprehensive and digitally supported procedure minimizes credit risks and effectively facilitates the implementation of entrepreneurial projects.

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