Guarantees of the Federal Government and the States

The program "Guarantees of the Federal Government and the States" supports commercial enterprises and start-ups nationwide in securing investment and working capital loans when customary bank collateral is insufficient. In a three-tier system, guarantee banks assume default risks of up to €2 million, supplementary state programs close financing gaps beyond that, and in structurally weak regions, federal large guarantees starting at €20 million are available in combination with state guarantees. With a funding rate of up to 80%, the instrument secures credit institutions, while borrowers bear a minimum equity risk of 20%. The prerequisite is an economically beneficial project, a financially viable business concept, and the absence of alternative financing sources in accordance with EU state aid law. The program primarily targets small and medium-sized enterprises (SMEs) with appropriate equity participation by shareholders.

Applications can be submitted at any time and are processed depending on the guarantee amount through the house bank, state ministries of economic affairs, or directly at the regional guarantee banks. For inquiries starting at €20 million in GRW-funded areas, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft assumes advisory tasks within the framework of the federal large guarantee program. The funding instrument can be combined with other public financing and support offers, provided that EU cumulation rules are observed. Interested companies can find further information in the funding database and on the portals of the guarantee banks as well as via the financing portal of the associations.