Guarantees in Favor of Commercial Enterprises and Liberal Professions (State Guarantee Program)

The Thuringia State Guarantee Program supports commercial enterprises, self-employed professionals, and prospective shareholders by assuming guarantees for investment and working capital loans. The focus is on economically beneficial projects for which sufficient collateral is not available without a guarantee. Loans, chattel hire-purchase and leasing contracts, as well as loans for financing working capital, are eligible for support. The guarantee share generally amounts to up to 80% of the loan volume (up to 90% under the Ukraine aid program). Applications can be submitted at any time through PwC GmbH. The application requires a sound business plan that ensures loan repayment, as well as proof that sufficient collateral for an unsecured bank loan is not available. Companies already in financial difficulty are excluded.

As the mandatary of the Free State, PwC GmbH in Erfurt handles and manages all guarantee applications. The costs consist of a one-time application fee (0.45% of the requested guarantee amount, minimum €10,000, maximum €40,000) and an annual guarantee fee (usually 1.0% of the remaining guarantee amount). Combining this with other state or federal programs is possible; however, priority is given to utilizing primary guarantee programs. For application submission, the official application form, the lender’s statement, an overview of the required documents, and a “de minimis declaration” are required. The possibility to submit funding requests year-round offers flexible planning perspectives for start-ups, succession solutions, and growth projects in Thuringia.