Equity participation

Equity Participation Program of the Saarland Capital Participation Company (KBG) – Capital Initiative for Start-ups and Emerging Companies

Start-ups and small to medium-sized enterprises in Saarland can strengthen their equity base with equity capital ranging from €30,000 to €100,000. Applications can be submitted at any time through the house bank prior to the start of the project.

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Grant criteria

Application Deadline: Ongoing
Application level: Advanced
Region: Saarland
Company size: Small and medium-sized enterprises
Funding amount: €30,000 - €100,000
Funding rate: 100%
Project duration: 120 months

Funding objective

Expansion of the equity base to improve financing ratios and create financial flexibility, particularly for co-financing investment and/or operating resources.

Eligible expenses

  • Investment costs
  • Operating costs

Non-eligible expenses

  • Restructuring of the company
  • Consolidation of financial arrangements

Eligible to apply

  • Companies
  • Founders

Funding requirements

  • Registered office or place of business in Saarland
  • Compliance with the EU SME criteria
  • Project must serve to expand the equity base
  • Restructuring or consolidation measures are excluded

Documents required for application

  1. Application form
  2. Forms from the form center
  3. Checklist with details of the required documents

Description

The equity participation program of the Saarland Capital Participation Company strengthens the equity base of start-ups as well as small and medium-sized enterprises (SMEs) with headquarters or operations in Saarland. With a capital share ranging from €30,000 to €100,000, the program supports investment and operating capital projects and sustainably improves financing ratios. The goal is to create financial leeway and increase competitiveness. Applicants must meet the EU SME criteria, and the project must not be solely for restructuring or consolidation purposes. Through the 100 percent participation rate, necessary equity gaps are effectively closed without blocking additional collateral.

The participation term is up to ten years, with a grace period on repayments typically granted for seven years. The remuneration consists of a fixed and a performance-based component, which is linked to cash flow. Early repayment is not provided to ensure long-term planning security. Interested applicants submit their application before the project start via their house bank, which attaches all documents as well as an application form and a checklist from the form center. Since applications can be submitted continuously, entrepreneurs can respond quickly to financing gaps and implement their growth or start-up projects.

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