Guarantee

Guarantees from the Baden-Württemberg Guarantee Bank for Equity Investments

The Bürgschaftsbank Baden-Württemberg assumes up to 70% default guarantees for investments by private equity firms in SMEs in Baden-Württemberg. Investments of up to €1.5 million per investee are possible.

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Grant criteria

Application Deadline: Ongoing
Application level: Advanced
Region: Baden-Württemberg
Company size: Small and medium-sized enterprises (SMEs)
Funding amount: €1.5 million per participant
Funding rate: 70%
Project duration: 120 months

Funding objective

Securing private equity investments by private equity firms in small and medium-sized enterprises in the commercial sector and horticulture in Baden-Württemberg, in order to supplement missing or insufficient collateral for bank loans and thus enable better conditions for growth projects, investments, and liquidity assurance.

Eligible expenses

  • up to 70% of the participation amount
  • costs of termination and appropriate legal enforcement

Non-eligible expenses

  • Guarantee bank fees
  • Interest, reminder fees, and ancillary claims

Eligible to apply

  • Founders
  • Companies

Funding requirements

  • private equity companies
  • SMEs in the commercial sector and horticulture in Baden-Württemberg

Documents required for application

  1. Application for Guarantee
  2. Declaration on Subsidies
  3. SEPA Direct Debit Mandate
  4. Self-Disclosure
  5. Check-Up Short Analysis
  6. SCHUFA Credit Report

Evaluation criteria

  • Type of innovation and project of the participation
  • Equity base of the participants
  • Profitability and corporate management

Description

Bürgschaftsbank Baden-Württemberg GmbH offers private equity companies a tailored guarantee covering up to 70% of default risks for investments in small and medium-sized enterprises (SMEs) as well as horticultural businesses in Baden-Württemberg. Investment amounts of up to €1.5 million per capital provider are possible, subject to a consolidated equity share. Innovative projects such as development and commercialization initiatives, structural change solutions, rationalizations, or growth and investment ventures are supported, as well as business successions and start-ups. The aim is to complement missing or insufficient loan securities vis-à-vis the house bank in order to enable better credit terms, growth scenarios, and liquidity assurance. The term is aligned with the intended use and can be up to 120 months.

For the application, a complete self-disclosure, a brief analysis, as well as SCHUFA and state aid declarations are required. Applications can be submitted at any time through the house bank. Bürgschaftsbank independently assesses the economic and financial viability of the investment as well as its innovative strength and, upon approval, continues a 100% 80% federal counter-guarantee. The state aid regulations of the European Commission must be observed in this process. Furthermore, Bürgschaftsbank provides free advisory services and continuous support from application submission to final realization in the event of liability. In this way, it contributes in the long term to strengthening the SME sector and sustainable regional development in Baden-Württemberg.

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