IKK – Investment Credit for Municipalities

IKK – Investment Credit for Municipalities provides nationwide low-interest loans of up to €150 million per year to enable municipalities and municipal institutions to invest in municipal and social infrastructure, digitization projects, smart city measures, mobility solutions, and urban development initiatives. Eligible for funding are municipal territorial authorities, their legally dependent municipal enterprises, municipal associations, and municipal special-purpose associations. Funding is provided, among other things, for the acquisition of municipally owned land, planning services as part of the investment, as well as construction measures for daycare centers, schools, sports facilities, wastewater and water supply, barrier adaptations, and the development of building plots. By combining with other public funds, grant contributions can be effectively coordinated to optimally utilize municipal budget surpluses and current capital budgets.

The loans are long-term with a maximum term of 240 months and variable duration; the funding share ranges depending on the loan amount from 50% up to 100% of eligible expenses (up to €2 million at 100%, above that up to 50%). Applications are accepted continuously, and funds can be drawn within 12 months after approval. Requirements include financing within the framework of the capital budget or budget surplus of the previous year, as well as the exclusion of cash advances or refinancing of already completed projects. The following documents are required for the application: Direct Loan Application, IKK Acceptance Declaration, Drawdown Form, DAWI Self-Declaration, and proof of Identification according to the Money Laundering Act. The KfW Banking Group supports the projects as the funding agency with comprehensive information sheets and advisory services, thereby assisting municipal sponsors in the successful implementation of long-term infrastructure and digitization projects.