Investment Credit for Municipal and Social Enterprises in the Field of Municipal and Social Infrastructure – IKU
KfW supports investments and working capital for municipal and social infrastructure in Germany with low-interest loans up to EUR 50 million and terms of up to 30 years. Applications can be submitted at any time through financing partners.
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Grant criteria
Funding objective
Support for municipal companies, public institutions, and non-profit applicants in investments in municipal and social infrastructure as well as working capital financing in Germany.
Eligible expenses
- Construction and expansion of municipal and social infrastructure facilities
- Acquisition of land (max. 2 years old)
- Financing of operating resources
- Procurement of equipment and furnishings
- Information and communication infrastructure (broadband)
Non-eligible expenses
- Refinancing and follow-up financing of already started or completed projects
- Pure capital investments
- Leasing financing
- Own contributions
- Remunerated and other asset transfers
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Eligible to apply
- Companies
- Public Institutions
- Non-profit Organizations
- Foundations
- Individuals
Funding requirements
- Project must be a municipal or social infrastructure measure
- Properties must not have been acquired more than 2 years prior to the application date
- Compatibility of the project with the KfW exclusion list and the Paris-aligned sector guidelines as well as compliance with German environmental and social standards
- Eligible applicants are legal entities and legally capable partnerships with at least 50% public-law participation, institutions, foundations and public law corporations with a municipal background, non-profit applicants as well as companies and natural persons within the framework of investor-operator models
Documents required for application
- De minimis declaration
- Cumulative aid declaration
Evaluation criteria
- Creditworthiness and financial situation of the applicant
- Quality and value retention of the provided collateral
Description
With the Investment Loan for Municipal and Social Enterprises (IKU), the KfW Banking Group offers a flexible financing solution to realize municipal and non-profit infrastructure projects in Germany. The low-interest loans enable investments and working capital projects – ranging from kindergartens and schools to urban development, mobility concepts, and transport infrastructure, as well as broadband networks and social facilities in the health and cultural sectors – with a volume of up to EUR 50 million and a term of up to 360 months. The effective annual interest rates are based on the EU reference rate and may fall within the scope of de minimis aid. A grace period without repayments and a funding rate of 100% of eligible expenses provide additional financial flexibility.
Eligible applicants are legal entities and legally capable partnerships with at least 50% public-law participation, public-law institutions and foundations, as well as non-profit applicants and participants within the framework of investor-operator models. The program covers projects in the areas of urban development & urban renewal, infrastructure & mobility, as well as social facilities. A municipal or social infrastructure project is a prerequisite for funding; land acquisition must not be older than two years before the application date. Eligible expenses include construction, expansion, land, equipment, information and communication infrastructure (especially broadband), and working capital. Refinancing, pure capital investments, leasing financing, own contributions, remunerated asset transfers, premises for religious practice, and investments by political parties are not eligible for funding. Creditworthiness and the value retention of collateral are central evaluation criteria. Applications can be submitted at any time before the start of the project through a financing partner.
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