The ERP Start-up Loan – StartGeld program is expanding its reach to include non-profit enterprises starting November 1. This change is part of the German Federal Government's "National Strategy for Social Innovation and Social Enterprises."
KfW, a bank focused on responsibility, is opening this program to support companies contributing positively to society. The ERP Start-up Loan – StartGeld offers entrepreneurs, self-employed professionals, and young companies access to low-interest loans up to five years after they begin their business operations.
Eligible applicants can apply for loans up to EUR 125,000 through their regular banks. Notably, KfW will assume 80% of the customer credit risk for these banks. Both investments and running costs are covered under this promotion.
The loan program is open to all companies serving the common good, including small commercial social enterprises intending to make a profit and small non-profit enterprises. Additionally, sideline enterprises that have the potential to become a primary source of income are also eligible.
Further details about the program are available online in German.