The Federal Ministry of Finance, the Federal Ministry for Economic Affairs and Energy, and KfW have launched two new promotional loan programs aimed at supporting businesses in digitalization and innovation. The "ERP Promotional Loan for Digitalisation" and "ERP Promotional Loan for Innovation" were introduced on July 1st, offering versatile financing options with no minimum loan amount, targeting small to medium-sized enterprises (SMEs).
These loans are backed by KfW funds from the ERP special fund, designed to support SMEs. The programs aim to enhance funding for future technologies while removing the minimum loan amount requirement, enabling smaller companies to invest in digitalization and innovation projects.
Katherina Reiche, Federal Minister for Economic Affairs and Energy, emphasized the importance of these initiatives: "Digitalisation and innovation are the growth drivers of tomorrow – both for corporate groups and for SMEs. KfW is specifically supporting small and medium-sized enterprises with its new financing offers."
Lars Klingbeil, Vice Chancellor and Federal Minister of Finance, highlighted the significance of fostering a strong digital ecosystem: "Innovation and digitalisation are essential for strengthening Germany as an economic centre. We want to foster innovation and develop a strong digital ecosystem - from start-ups and SMEs to tech giants."
The funding structure consists of three stages based on project complexity. Interest rate advantages increase with higher degrees of digitization or innovation. Melanie Kehr from KfW stated: “The introduction of the new promotional loans is an important step towards strengthening the competitiveness of German companies in the digital age.”
A key feature is the KfW Digitalisation Check, which helps companies assess their current status in digitalization efforts. This check is mandatory for SMEs seeking basic promotion under these loans.
The programs replace previous products like “ERP Digitalisation and Innovation Loan” and “ERP Mezzanine for Innovation.” They cater to self-employed professionals, sole proprietorships, and SMEs with annual revenue up to EUR 500 million located in Germany.
Supplementary grants accompany these loans—three percent of the loan amount paid out under LevelUp promotion projects or five percent under HighEnd promotion projects.
Further details about these programs can be accessed through designated online resources provided by KfW.