The Corona aid loans
der Kreditanstalt für Wiederaufbau (KfW) was the first contact for many entrepreneurs in Germany about promotional loans. The KfW quick loan in particular quickly established itself as an uncomplicated financial product to help companies that got into economic hardship during the pandemic.
But apart from this economic aid, development banks at the federal and state level also support medium-sized and small companies with investments. Loans like that KfW entrepreneur loan
are rather broad and allow a variety of different investments. Other funding programs are more specific and can often offer companies even better conditions. This includes, for example, digitization projects.
An example: the ERP digitization and innovation loan
As an institution under public law and a promotional bank, it is the task of KfW to support economic development. Digitization is a key issue here. An example is the ERP digitization and innovation loan from KfW, with which future-oriented projects are actively promoted by medium-sized and young companies and freelancers.
The conditions of the program at a glance:
- Interest rate from 1.00% APR
- Attractive subsidy of 3% (not to be repaid!)
- Minimum loan amount: 25,000 euros
- Depending on the financing project, up to 25 million euros possible
- Minimum term: 2 years (5 years with subsidy)
- Payout: 100% of the loan amount
Examples of eligible investments include the implementation of ERP and production systems (keyword Industry 4.0), the creation of digital platforms, apps or new online sales channels or the expansion of internal broadband networks. In general, this promotional loan supports the development of new products, processes or services with an innovative character. If in doubt, it is worthwhile to check your own investment project and ask for financing.
Subsidy of 3% that companies do not have to repay
The special thing about the loan is certainly the non-repayable grant of 3 percent. That means: The entrepreneur receives 3 percent of the loan amount paid out to his account after the loan is called. With a sum of 1 million euros, a company saves 30,000 euros.
Digitally faster to the funding program
Promotional loans are subject to a special feature: they cannot usually be requested directly from KfW. It is always necessary to use a commercial or house bank. Those who shy away from a personal visit to a bank advisor can use digital channels like a Online platform financing with a promotional loan like the one described, even without on-site appointments Digitization loan from KfW Requests. There, too, qualified technical advice is usually offered over the phone.
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