Direct grants are non-repayable cash payments to new companies in Germany to offset initial start-up costs, to promote research and development or to support a company`s workforce development. Don`t let the amount of fundraising information overwhelm you. It is important to note that there are more than 450 sources of funding for repayable grants, grant programs, individual fellows, and internships, loans and guarantees. These can be awarded by organisations such as the European Commission, the Council of Europe, the European Investment Bank and others. You have your research, a well-written business plan, and you know what kind of business you want for your business. So what`s next? At this point, it`s probably a good idea to talk to your accountant in Germany or the UK. They can advise you and help you with possible financial options. The ERP/EIF Growth Facility is a collaborative project between the ERP Special Fund and the European Investment Fund covering venture capital and mezzanine financing. it provides fast-growing companies with an efficient way to access much-needed capital for growth. The ERP Special Fund and the EIF will collaborate with other successful venture capital fund investors in the ERP/EIF portfolio to create co-investment funds to invest in innovative, fast-growing companies. These holding companies must have their permanent establishment or the centre of their business activities in Germany. There are no sectoral restrictions. The investment made by the fund is subject to the same conditions as the investment of the private co-investor (pari passu).
The instrument therefore has a significant leverage effect. Small businesses play an important role in our country`s economy and workforce. We are working with the United States. Small Business Administration (SBA) to provide startups and existing small businesses with the financial support they need to thrive and grow. SBA loans are guaranteed by the federal government and offer more flexible lending structures, more time to repay loans, and lower down payment options. Subordinated lending strengthens the equity base and paves the way for debt capital, which is also needed to finance start-up or equity investments. Germany offers fertile ground for the entrepreneur, with billions of euros invested in programmes to promote research, innovation and investment. There are many grants, loans and financial incentives for anyone who wants to start a business. German and foreign entrepreneurs are cordially invited to apply for financial support. The fund of funds, co-financed by the European Investment Fund and the ERP Special Fund, invests €2.7 billion in venture capital funds, most of which invest in Germany.
Part of the ERP/EIF fund totalling EUR 270 million will be used for the European Angel Investor Fund, which was relaunched in 2012. The latter co-finances the investments of selected and experienced business angels and other non-institutional investors who invest in innovative companies. Link your business to an account that meets your needs. We support companies with fewer than 250 employees and a maximum annual turnover of €50 million or total assets of €43 million, including founders, successors and the self-employed. Get the working capital your growing business needs to find new success or the resources you need to start your business. The Micro-Mezzanine Fund Germany aims to strengthen the equity base and thus creates new financing opportunities for small and new companies. Many very small businesses and startups find that a lack of equity prevents them from accessing credit. In order to provide these companies with better access to finance and increase their risk-taking capacity, BMWi created the Micro-Mezzanine Fund Germany in 2013, which reached a total of €75 million at the end of 2015 (Fund I). An additional EUR 153 million is available for the period 2014-2020 (Fund II).
The instrument, co-financed by the European Social Fund (ESF), provides companies with up to EUR 50 000 in risk capital for a period of ten years or up to EUR 150 000 for specific target groups. Learn more. To be entitled to start-up allowance, you must be entitled to unemployment benefits for at least 150 days beyond the time you start working for yourself. In addition, you must prove that you have the knowledge and skills to run your own business, for example through your qualifications or participation in a course. Improve business performance by securing the funds needed to purchase commercial real estate or equipment. In general, the longer the term of the loan and the higher the risk (assessed by your bank), the higher the interest you have to pay on the loan. Therefore, it is important that you convince the bank of your plans with a well-developed business plan. It is also crucial that you have sufficient own funds. We understand the diversity of business financing needs and are able to tailor loans to work best for your business and your bottom line. In addition to the loans offered by KfW, each federal state has its own development bank, which provides loans of up to €10 million to small and medium-sized enterprises (SMEs).
Entrepreneurs in Germany also have access to publicly funded programs from development banks that offer loans at low interest rates. There are two levels of public loans: the loans are intended for public and private companies in Germany and the amount can cover 50% of the investment project. Small and medium-sized enterprises can apply for this type of loan if the cost of their project is less than €25 million. You have different options for raising capital for the start-up phase. The key factor is that it suits you and your business plans. If the founders of companies themselves do not have enough money to provide capital, they can raise funds from third parties. There are cash payments for companies that hire unemployed people on long-term contracts. You can receive a subsidy of up to 50% of the employee`s salary for a maximum of 12 months.
If the employee has a disability or has exceeded a certain age, the subsidy increases to 70% of his salary for a maximum period of eight years. You must apply for the wage subsidy before signing employment contracts. The fairness application process varies from supplier to supplier, but in general, you must submit a business plan and meet with the investor before a decision can be made. When it comes to financing, a distinction is usually made between equity and debt. Your equity is the financial cornerstone of your business. This includes your personal belongings (p.B. cash and savings) and objects that are part of your business (p.B. machinery and equipment).
Equity in the form of venture capital can complement a bank loan or be used as an alternative to it, with partners contributing this venture capital to their business. These can be private equity firms, venture capital firms or business angels. Business angels are experienced entrepreneurs who bring not only their capital, but also their expertise and networks. Whether you need to upgrade technology, increase operational efficiency, or expand your product line, fund the equipment you need to keep your business running smoothly. Domestic and foreign investors who want to start a business in Germany and do not have the required amount have several ways to get loans to companies. .