Guarantees of the Investment and Structural Bank Rhineland-Palatinate

The guarantees provided by the Investment and Structural Bank Rhineland-Palatinate (ISB) enable commercial enterprises, craft businesses, housing companies, developers, members of liberal professions, and start-ups in Rhineland-Palatinate to access economically and business-wise sensible investment and working capital loans (cash and guarantee loans) when sufficient collateral is not available. The ISB assumes default guarantees covering up to 80% for investment loans, 70% for guarantee loans, and 60% for working capital loans, with a maximum of up to €3.5 million. This relieves house banks of credit risks and simultaneously opens up new financing opportunities. The funding rate overall ranges between 60% and 80%. The guarantees are considered maximum amount guarantees and cover interest for up to twelve months after loan termination, legal enforcement costs, as well as necessary realization expenses.

Applications are submitted continuously together with a house bank or another credit institution to the ISB; an application and a SEPA direct debit mandate must be submitted. Funding requirements include, among others, the registered office or place of business in Rhineland-Palatinate, implementation of the project within the state, and use of the loan for a sustainability- and growth-oriented project; existing loans are not guaranteed. Upon approval, a one-time processing fee of 1.5% of the guarantee commitment (minimum €500) is due, followed by an ongoing fee of the same amount per year. If the full amount of funds is not drawn, the maximum guarantee amount is reduced proportionally. The guarantee conditions can be accessed in the ISB download center; comprehensive advice and process support are provided by the customer service and funding experts of the Investment and Structural Bank Rhineland-Palatinate. Interested entrepreneurs and start-ups can apply at any time through their house bank.