ERP Promotional Loan for Start-ups and Succession
Low-interest promotional loan for financing investments and working capital for start-ups, business successions, and young companies. Loan amounts up to €500,000 possible. Applications can be submitted continuously through financing partners before the project starts.
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Grant criteria
Funding objective
Financing of investments, working capital, inventory stocks, as well as business acquisitions and equity participations to support business start-ups, business succession, and consolidation of young companies up to five years after the founding date.
Eligible expenses
- Investments
- Operating resources
- Inventory
- Company acquisitions and participations
Eligible to apply
- Founders
- Companies
Funding requirements
- Application must be submitted to a funding partner before the start of the project
- Applicants must be part of the management team
- Eligible are start-ups, successions, and consolidation measures up to 5 years after establishment
- Loan amount may not exceed 35% of the eligible costs
Documents required for application
- Curriculum vitae
- Self-disclosure/statement of assets
- Business plan including profitability and liquidity planning
- Drafts of important contracts (e.g. lease or franchise agreement)
- Annual financial statements of the last two years (for succession and young companies)
Description
With the ERP Promotional Loan for Start-ups and Succession, the Federal Ministry for Economic Affairs and Climate Action provides a low-interest loan solution, which is granted through the KfW Banking Group. The aim is to support start-ups, business successions, and young companies up to five years after commencing operations. The program covers investments, working capital, inventory, as well as acquisitions and participations. Loan amounts of up to 500,000 euros enable flexible project financing, covering a maximum of 35% of eligible costs. A 100 percent guarantee assumption by guarantee banks reduces the risk profile and results in attractive interest rates.
Eligible applicants are founders, business successors, and young entrepreneurs who act as or are appointed to the management and submit their loan application to a financing partner before the project begins. The terms range between 120 and 180 months and include grace periods for repayment as well as interest rate security. Ongoing application submission throughout the entire federal territory allows for needs-based preparation of projects. Required documents for application submission include, among others, a tabular CV, a self-disclosure with asset statement, a business plan with profitability and liquidity planning, as well as drafts of essential contracts. Annual financial statements for the past two years must be submitted for succession and consolidation measures. Through this structure, the promotional loan offers small and medium-sized enterprises the opportunity to realize sustainable growth objectives and to strengthen their market position in the long term.
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