Counter-guarantees of the Federal Government and the States

Federal and State Counter-Guarantees strengthen equity financing for small and medium-sized enterprises (SMEs) nationwide. Subject to standard bank credit assessments and equity formation, the SME Investment Corporations (MBGen) assume guarantees for equity participations in small and medium-sized enterprises as well as freelancers. The federal government and the states provide an 80% counter-guarantee for these surety obligations, thereby creating a high level of liability security. The counter-guaranteed participations serve to expand the equity base, consolidate financial conditions, and finance investments, innovations, business successions, or start-ups. The guarantee can be applied for at any time from the responsible MBGen, with a maximum federal share of approximately EUR 1.07 billion and corresponding quotas per federal state for the state portion.

The funding rate and conditions are aligned with EU state aid rules: De minimis aid up to EUR 200,000 within three years remains exempt from accounting. Equity capital, equity substitutes, and leasing participations are eligible for funding, whereas interest payments and operating costs are excluded. The surety may not exceed 80% of the financing amount, with a maximum possible guarantee commitment of EUR 2 million per participation. Corporate and personal securities are to be provided depending on the risk. For the application, the participation agreement, guarantee declaration, and shareholder resolution must be submitted. An independent premium calculation including a subsidy model guarantees legally permissible loss cost ceilings under state aid law and ensures the long-term provision of liability by the federal and state governments.