Investment Loan Municipality Direct
Long-term low-interest loan for municipal infrastructure projects in Baden-Württemberg in cooperation with KfW. Financing share up to 100% (under €2 million) or 50% (from €2 million). Terms from 10 to 30 years. Applications can be submitted at any time.
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Grant criteria
Funding objective
Funding of investments and investment promotion measures in municipal infrastructure such as wastewater disposal, land development, kindergartens, schools, sports facilities, hospitals, energy savings, urban and village development, tourism, transport infrastructure, administrative buildings, and water supply.
Eligible expenses
- Acquisition costs
- Construction measures
- Renovation
- Modernization
- Energy saving
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Non-eligible expenses
- Cash advances
- Refinancing of already completed projects
- Housing-related projects
- Projects of municipal companies in private legal form
Eligible to apply
- Public Institutions
Funding requirements
- Represented by municipal authorities, municipal enterprises, or special-purpose associations
- Investment location in Baden-Württemberg
- Project included in the asset budget plan for the current fiscal year and compliance with Paris-compatible KfW sector guidelines
- Properties acquired no more than 2 years before the application submission
- Cash advances and refinancing of already completed projects excluded
Documents required for application
- Application
- Budget plan proof
- Documents related to the investment project
- Certified documents
Description
The Baden-Württemberg Infrastructure Program enables public institutions to implement municipal investment projects on a long-term and low-interest basis. In cooperation with the KfW Development Bank, L-Bank provides loans with terms of 10 to 30 years and covers up to 100 percent of eligible investment costs for loan amounts under €2 million, and 50 percent for amounts above €2 million. Eligible costs include, among others, acquisition costs, construction measures, and renovations in the areas of wastewater disposal, land development, kindergartens, schools, sports and hospital facilities, energy savings, urban and village development, tourism, transport routes, administrative buildings, and water supply. A grace period of at least one year without repayments as well as interest rate security for the first ten years increase planning certainty for municipal authorities.
Eligible applicants are municipal authorities, legally dependent municipal enterprises, and municipal associations with investment projects in Baden-Württemberg. Requirements include the inclusion of the project in the asset budget plan of the current fiscal year, compliance with the Paris-compatible sector guidelines of KfW, and acquisition of the property no more than two years prior to application. Cash advances and refinancing of already completed projects are excluded. Continuous application submission is possible; the completed funding application, proof of budget plan, and detailed, certified documents on the investment project must be submitted. Applications are to be submitted directly to L-Bank, the development bank of the state of Baden-Württemberg.
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