BAB Microcredit

The BAB Microcredit in Bremen targets a wide range of applicants, including small commercial enterprises, freelancers, cooperatives, and natural persons who wish to establish, take over, or continue a business. The program aims to facilitate the financing of small start-up projects and the development, stabilization, and expansion of micro and small enterprises in the state of Bremen, especially when traditional bank financing is not possible or only partially available.

The BAB Microcredit serves to finance investments and project-related working capital to support the development, expansion, or stabilization of existing small businesses, as well as the establishment or takeover of a small business. No specific sectors are preferred, but there are exclusions for certain industries. The funding targets various phases of business development, from establishment to stabilization.

The BAB Microcredit is granted in the form of a loan and offers financing of up to EUR 100,000 per project. The term can be up to 10 years, including an initially possible grace period. Early repayment of the loan is possible without additional costs.

To be eligible for funding, applicants must meet certain legal and operational requirements, including a registered office in Bremen and the ability to manage the business properly. The loans are granted based on the De minimis regulation, and other financing options are to be used primarily.

The application for the BAB Microcredit is submitted directly to Bremer Aufbau-Bank, ideally before the start of the project to be financed. The loan is granted based on a private law contract, with a creditworthiness assessment.

The legitimacy and framework conditions for the BAB Microcredit result from the "BAB Microcredit Funding Criteria" and are embedded in overarching European and national funding programs.