Combined Program Guarantee plus Equity Participation

Combined Guarantee plus Participation Program in Schleswig-Holstein links default guarantees and silent partnerships to strengthen the equity base of young and established small and medium-sized enterprises. The goal is the co-financing of economically viable investment and working capital projects of start-ups and SMEs with below-average equity ratios. In this context, Bürgschaftsbank Schleswig-Holstein, together with Mittelständische Beteiligungsgesellschaft Schleswig-Holstein mbH, assumes default guarantees of up to 80% of the loan amount and additionally provides participation capital. Funding is granted to companies that have their registered office or a branch in Schleswig-Holstein and meet the EU SME definition.

The financing requirement can range between EUR 100,000 and EUR 500,000, with the loan and silent participation capital in a ratio of 75:25. The funding rate amounts to up to 80% of eligible expenses, which include investment costs and working capital. Applications can be submitted online at any time via the applicant’s house bank. Interested companies and founders submit their informal application through the digital application module of Bürgschaftsbank Schleswig-Holstein. The combination of guarantee and silent participation creates improved financing conditions and increases the chance of a positive credit decision by significantly reducing the risk for the house bank.