Guarantees of the Saxony-Anhalt Guarantee Bank for Equity Investments

The Guarantee Bank Saxony-Anhalt supports founders, freelancers, as well as small and medium-sized enterprises (SMEs) in Saxony-Anhalt by assuming guarantees for investments from private equity companies. With budget backing from the federal government (80%) and the state (80%), up to 80% of the investment amount and agreed profit claims are guaranteed, up to a maximum of €1 million (in exceptional cases €2.5 million). The maximum guarantee term is ten years. Operational companies from crafts, trade, industry, hotel and catering, transport, horticulture, as well as freelancers with headquarters and business operations in Saxony-Anhalt are eligible for funding. The financing strengthens the equity base and competitiveness and is equally suitable for growth, innovation, and succession projects.

Requirements include meeting the EU definition of SMEs, proof of personal co-liability for the non-guaranteed portion, as well as professional and commercial qualifications. Investees submit a signed investment declaration, investment contract, annual financial statements, list of shareholders, and business and financial plans. The house bank simultaneously applies for KfW refinancing; following a positive credit assessment, the Guarantee Bank grants a 100% guarantee to the bank. The annual guarantee fee amounts to 1.01% of the guaranteed volume, and the processing fee is 1% (minimum €400). In the event of guarantee utilization, it reimburses 80% of the loss; the house bank assumes the remaining risk. Cancellations by investees are possible with twelve months' notice; in case of contract breaches, extraordinary termination applies. Proceeds from realization are distributed proportionally. The transparent, cooperative support ensures predictable conditions for long-term investments in Saxony-Anhalt.