State Guarantees for the Commercial Sector

The Free State of Bavaria supports commercial enterprises and self-employed professionals lacking sufficient bank collateral through a state guarantee that covers up to 80% of the credit risk. Funding is provided for investment loans, exceptionally for working capital loans and guarantee loans, to implement projects of economic significance within the Free State. The LfA Förderbank Bayern processes guarantees up to an amount of €5 million based on its guidelines; approval from the Bavarian State Government is required for larger sums. Applications can be submitted at any time through the applicant’s primary bank. Timely interest payments and repayment of the loan, as well as the proper execution of the project from an organizational and business management perspective, are prerequisites for the application.

Eligible applicants are small and medium-sized enterprises (SMEs) in the commercial sector as well as members of liberal professions headquartered in Bavaria. A prerequisite is that without the guarantee, sufficient collateral is not available and the overall financing of the project is secured. An appropriate equity participation and compliance with EU state aid regulations must be demonstrated. Investment loans must not have commenced at the time of application. The maximum project duration is 180 months, with the guarantee period adjusted accordingly. This guarantee facilitates access to low-interest loans and thereby sustainably promotes growth, innovation, and job security in Bavaria.