Guarantees from Bürgschaftsbank Baden-Württemberg for Equity Investments
Bürgschaftsbank Baden-Württemberg GmbH offers private equity investment companies (KBG) guarantees for their equity participations in small and medium-sized enterprises (SMEs) in the commercial sector and horticulture. This program enables financing that would otherwise not be possible or only under unreasonable conditions, thus supporting the strengthening of equity capital and the realization of important projects for SMEs.
Who is funded?
The program supports private equity investment companies (KBG) in Baden-Württemberg by providing guarantees for their equity investments in small and medium-sized enterprises (SMEs) and horticultural businesses. The aim is to enable essential financing for SMEs in areas such as innovation, expansion, or business succession.
What is funded?
The program specifically promotes investments in SMEs for various purposes, including cooperation projects, innovation projects, structural adjustments, the establishment or expansion of businesses, and business successions. Support is provided in the form of a silent partnership.
Type and Scope of Funding
This program offers an equity investment guarantee for private equity investment companies. The guarantee covers up to 70% of the investment amount, with a maximum of 1.5 million Euros per SME (in exceptional cases up to 2.5 million Euros) and may not exceed the amount of the SME's existing equity. The maximum term of the investment is 10 years.
Conditions and Requirements
Applying equity investment companies (KBG) are obligated to exercise due commercial diligence. The beneficiary SME must demonstrate long-term profitability and good management. Strict conditions apply to the investment agreement, including information and auditing rights, as well as regulations for termination and repayment of the investment. The program explicitly excludes the financing of restructuring cases.
Application Procedure
Interested private equity investment companies (KBG) submit their application directly to Bürgschaftsbank Baden-Württemberg GmbH. Approval is granted after an assessment of the SME's profitability and the necessity of the guarantee for the investment.
Legal Basis
The funding program is based on the 'Guarantee Provisions for Publicly Funded Investments,' which came into force on January 1, 2023. It is supported by counter-guarantees from the Federal Government and the State of Baden-Württemberg and must comply with the state aid regulations of the European Commission.
Similar Programs
Funding Overview
Funding Status:
Open
Maximum Amount:
Maximum 70 percent of the investment amount, up to 1,500,000 € or in justified exceptional cases up to 2,500,000 € per investment recipient, not exceeding the sum of the existing equity of the investment recipients.
Deadline:
always open
Open Until:
Ongoing
Award Channel:
Individual Aid
Region:
Baden-Württemberg (Germany)
Sectors:
Agriculture and Agribusiness, Other
Beneficiaries:
Commercial enterprises, horticultural businesses
Application Type:
Single Applicant
Funding Stages:
Product Development, Market Introduction, Scaling, Planning, Implementation, Process Optimization, Other
Funding Provider
Program Level:
Regional
Funding Body:
Bürgschaftsbank Baden-Württemberg GmbH, Federal Government (Germany), State of Baden-Württemberg
Managed By:
Bürgschaftsbank Baden-Württemberg GmbH
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