The German Federal Ministry for Economic Affairs and Climate Action (BMWK) and KfW are set to enhance lending conditions for small and medium-sized enterprises (SMEs). Beginning on February 20, 2025, KfW will introduce a new grant aimed at supporting future-oriented investments. This initiative is in collaboration with the Federal Ministry for Economic Affairs and Climate Action, adding a component to the existing ERP Digitalisation and Innovation Loan. The funds for this grant are sourced from income generated by the ERP Special Fund, which is part of KfW's equity.
This measure seeks to boost innovation activities among German SMEs and facilitate necessary investments. The ERP Digitalisation and Innovation Loan supports important projects by offering particularly favorable interest rates. With the new supplementary grant, entrepreneurs receive additional motivation to invest in digitalisation or innovation.
Eligible applicants include self-employed professionals and medium-sized enterprises with an annual turnover of up to EUR 500 million. Grant applications can be submitted starting February 20, 2025, with commitments available from that date onward. The grant amounts to three percent of the disbursed loan, capped at EUR 200,000. Applications must be filed through local regular banks alongside loan applications.
For more details on the ERP Digitalisation and Innovation Loan as well as information on the new grant available from February 20, 2025, interested parties can consult relevant resources provided by KfW Research’s 2024 KfW SME Panel.
Further insights into the European Recovery Program (ERP) and the ERP Special Fund are also accessible online.