New Credit Available to SMEs in Germany

The program sees the KfW cooperate with so-called Bürgschaftsbanken – guarantee banks – and the Ministry for Economic Affairs and Climate Action to help deserving companies secure financing. 

The initiative will see companies’ house banks receive one-hundred percent guarantees for loans of up to EUR 500,000. The funds come from the EU’s European Recovery Program (ERP).

“I am delighted that, with the new ERP business support credit, we have created a program for start-ups and successors that offers attractive financing options at favorable conditions,” said Minister Robert Habeck in a statement. “The Ministry for Economic Affairs and Climate Action is particularly committed to new and successor start-ups. These are key to innovation, a strong SME sector and secure jobs and apprenticeships.”