IB.SH Broadband Funding Loan for Municipalities

In Schleswig-Holstein, the widespread expansion of high-performance internet access is supported through a low-interest loan. The goal is to assist districts, offices, municipalities, and special-purpose associations as municipal task carriers in the establishment of Next Generation Access networks (NGA) and the creation of passive network infrastructures such as empty conduits, cables, and PoP buildings. The funding is aimed at public-law institutions that neither act as network operators nor as service providers (internet, telephone, television) and offers an attractive financing alternative to realize a modern and future-proof digital infrastructure in rural and urban regions of Schleswig-Holstein.

Up to 50% of eligible investment costs are funded, with a maximum of 30 million euros per project. The loan term can be up to 25 years, with an interest rate fixation of up to 20 years and an interest subsidy of up to 1.5 percentage points p.a. for a maximum of ten years. A repayment deferral for the first five years provides additional planning security. Applications must be submitted at any time before the start of the measure to the Investment Bank Schleswig-Holstein; however, there is no legal entitlement to approval. Prerequisite for funding is the complete submission of the application before implementation begins and compliance with EU state aid law as well as procurement and municipal economic law provisions. This program enables the rapid advancement of broadband expansion and contributes to a reliable, sustainable infrastructure development in the region.