Innovation and Digitalization – Funding (Companies)

The KfW Banking Group supports small and medium-sized enterprises (SMEs) nationwide in investments in digitalization and innovation through the program Innovation and Digitalization – Funding (Enterprises). Both simple digitalization projects, such as the provision of IT infrastructure and IT security, as well as sophisticated innovation initiatives—from product improvements and prototype development to applications of artificial intelligence—are funded. Financing is provided in the form of low-interest ERP promotional loans for digitalization and innovation. For particularly extensive or complex projects, a one-time ERP promotional grant of up to €200,000 is additionally available. The program aims to sustainably enhance the competitiveness and efficiency of medium-sized businesses and pave the way toward a future-proof, digitalized economy.

The program targets medium-sized companies headquartered in Germany, operating in the manufacturing or service sectors, that intend to implement innovation or digitalization projects. Eligibility requires SME status; applications can be submitted on an ongoing basis. The ERP promotional loans are characterized by flexible use, no minimum loan amount, and attractive interest rates. This funding can finance not only hardware and software but also employee training and ongoing project costs. By combining loans and grants, a tailored financing structure is created, specifically designed to meet the needs of medium-sized enterprises and contribute to sustainable growth and strong innovative capacity in the long term.