Capital for Small Businesses

The Wirtschafts- und Infrastrukturbank Hessen (WIBank) offers the program Capital for Small Businesses, a low-interest subordinated loan ranging from €25,000 to €150,000 (term of 84 months), which benefits small commercial enterprises, freelancers, and non-profit social enterprises (gGmbH) in Hesse. The aim of this financing is to strengthen liquidity reserves and improve the financing structure. The funds can be used flexibly without earmarking – for example, for advance order financing, working capital financing, or general investments. Collateral in the form of customary bank securities is not mandatory, as this is a subordinated loan. Interest rates are based on current market conditions and are fixed for the entire term upon approval. A twelve-month grace period on repayments allows for a smooth start to repayment, followed by equal monthly installments over six years.

Eligible for funding are companies headquartered in Hesse that are not group-dependent, employ no more than 25 employees subject to social security contributions, and generate an annual turnover of no more than €5 million. A credit default probability of no more than 3.00% is required, as well as co-financing by the house bank in at least the same amount as the WIBank loan. Environmental and social standards must be observed, and the investment location may only be in EU or OECD high-income countries. Applications are submitted continuously via the house bank, which manages the process as the central intermediary. This loan thus sustainably strengthens the competitiveness and future viability of small businesses in Hesse.