Microcredit Fund Germany
Microcredit Fund Germany: Nationwide loan program for start-ups and small and medium-sized enterprises with amounts ranging from €1,000 to €25,000. Applications can be submitted at any time through accredited microfinance institutions.
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Grant criteria
Funding objective
Promotion of access to external capital for micro, small, and medium-sized enterprises for the establishment, strengthening, expansion, and implementation of new projects as well as for the development of new markets.
Eligible expenses
- Investments in tangible assets
- Intangible fixed assets
- Working capital
Non-eligible expenses
- Financing of management consulting services
- Refinancing of existing loans
Eligible to apply
- Founders
- Companies
Funding requirements
- Recommendation from an accredited microfinance institution
- SME according to EU definition (2003/361/EC)
- Sufficient creditworthiness (no insolvency, no ongoing debt collection or dunning procedures)
Documents required for application
- Letter of recommendation from the microfinance institution
- Financing plan and proof of viability
- Post-Ident verification
Evaluation criteria
- Economic viability
- Creditworthiness
Description
The Microcredit Fund Germany represents a nationwide loan offering that specifically supports start-ups as well as small and medium-sized enterprises (SMEs) in facilitating access to external capital. With financing amounts ranging from €1,000 to €25,000, the program promotes the founding, start-up and expansion phases, investments in tangible and intangible assets, as well as securing working capital. Federal funding is provided by the Federal Ministry of Labour and Social Affairs (BMAS) and allows for a term of up to 48 months. The interest rate is a flat 8.1% p.a., plus a one-time closing fee of €130. A grace period of up to six months before repayment is possible upon recommendation of the microfinance institution.
Applications can be submitted at any time through accredited microfinance institutions, which serve as contacts throughout the application process up to repayment. Funding requirements include a recommendation from the microfinance institution, SME status according to the EU definition, and sufficient creditworthiness (no ongoing insolvency or collection proceedings). Only entrepreneurial uses are eligible for funding; financing of business consulting services and refinancing of existing loans are excluded. The application includes, among other things, a letter of recommendation, a financing plan demonstrating economic viability, and Post-Ident verification. The straightforward application procedure and low entry barrier make the Microcredit Fund Germany an attractive instrument for strengthening competitiveness and accessing new markets.