KfW increases maximum loan amount for start-ups
KfW has raised the maximum loan amount for its ERP Start-up Loan – StartGeld program from EUR 125,000 to EUR 200,000. The financing for working capital has also been increased.
German development bank KfW has increased the maximum loan amount available through its ERP Start-up Loan – StartGeld program from EUR 125,000 to EUR 200,000. The adjustment, effective December 1, also raises the maximum financing for working capital from EUR 50,000 to EUR 80,000.
KfW stated that the increased funding aims to support German competitiveness and innovation by providing entrepreneurs with necessary capital. The program is designed to help founders turn their ideas into reality.
The loan is available to entrepreneurs, self-employed individuals, and companies up to five years old. It also supports small and medium-sized enterprises in cases of business succession.
Applications are processed through commercial banks, with KfW covering 80 percent of the default risk. This risk-sharing mechanism is intended to facilitate access to financing for new businesses.