Innovation Loan Hessen is being extended

Offenbach am Main (ots) – Good news for innovative and fast-growing companies: They can apply for the Hesse Innovation Loan beyond June 30, 2021. The Hessian Ministry of Economic Affairs, together with the Hessian Ministry of Finance and the Hessen Economic and Infrastructure Bank (WIBank), decided to renew the funding product until June 30, 2022.

The Hesse Innovation Loan, which relieves the on-going banks from the risk of default by 70 percent, has already spurred numerous entrepreneurial success stories. Since its inception in mid-2016, 80 companies have used this low-interest loan. A total of more than 68 million euros were promised to Hessian companies.

“Innovations create the future. New and creative thinking is a competitive advantage and certainly an important skill in order to leave the economic drought of the past few months behind you. With the extension of the Hesse innovation loan, we continue to support the innovative minds of our state and their ideas “, say Hesse’s Finance Minister Michael Boddenberg and Economics Minister Tarek Al-Wazir.

“After the last few months, which have been difficult for many entrepreneurs, we are seeing increased demand for innovation capital again. We are all the more pleased that we can continue to support future-oriented companies on their way with the Hesse Innovation Loan,” explains Dr. Michael Reckhard, member of the management team at WIBank.

HIK GmbH in Oberzent in Hesse also benefited from the Hessen Innovation Loan. The company employs around 200 people and specializes in the development, prototype construction and series production of electrical and mechatronic solutions. The range of products on offer ranges from ready-to-use plug-in cable assemblies and conductor sets, to control cabinets and electrical assemblies, to mechatronic systems. The company has also been developing e-mobility system solutions, such as charging stations for electric vehicles, since 2021. With an innovation loan of 1.2 million euros, the company is investing in the introduction of a digital ERP order and logistics system for the optimized control of business processes and for connecting customers and suppliers to the electronic data exchange. With this step, HIK is expanding the company’s professional digitization and is significantly driving the digital networking of the corporate groups.

To finance growth, WIBank has already supported the Hessian company in the past with several loans from the start-up and growth product family. “The example of HIK GmbH shows how well our products are geared to the needs and different investment projects of companies in Hessen and how important our close cooperation with the house banks is,” adds Dr. Reckhard.

The Innovationskredit Hessen (https://www.wibank.de/wibank/innovationskredit-hessen/innovationskredit-hessen/392026) is aimed at innovative or rapidly growing companies, even in the start-up phase. Small and medium-sized enterprises (SMEs) within the meaning of the EU’s SME definition, medium-sized companies with fewer than 500 employees (Small MidCaps) as well as natural persons and members of the liberal professions are eligible to apply. The loan amount ranges from 100,000 euros to 7.5 million euros and is granted through the house banks. The loan can be used for investments, working capital and acquisitions. Land, WIBank and EIF assume 70 percent of the default risk, 30 percent of the risk is borne by the respective house banks. Special feature: The innovation character must be proven, for example, through above-average research and development expenditure, innovation prizes or patent registrations.

The Hessen Innovation Loan is made possible by the InnovFin SME Loan Guarantee Facility of the Horizon 2020 program of the European Union (framework program for research and innovation) and the European Fund for Strategic Investments (EFSI) established under the Investment Offensive for Europe. The purpose of the EFSI is to promote the financing and implementation of productive investments in the European Union and to ensure improved access to finance. Financing is provided from WIBank funds, for which, among other things, low-interest refinancing funds from the European Investment Bank (EIB) are used. The state of Hesse supports the program through a risk partnership with WIBank.

Press contact:

Claudia monster
Head of Press and Public Relations
Tel: +49 (0)69 9132-3716
Email: [email protected]

Original content from: Wirtschafts- und Infrastrukturbank Hessen, transmitted by news aktuell
Original message: https://www.presseportal.de/pm/103206/4959790

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