Participation Guarantees from Bürgschaftsbank Niedersachsen

The Bürgschaftsbank Niedersachsen program targets small and medium-sized enterprises (SMEs) in the commercial sector and horticulture, operating in Lower Saxony. The goal is to support the creation or securing of a sustainably competitive existence by strengthening companies' equity base and financing various projects.

This funding program supports diverse projects of small and medium-sized enterprises in Lower Saxony, particularly in the commercial sector and horticulture. The guarantees secure private equity investments for projects serving business development and cover a large portion of the capital contribution. Restructuring measures aimed solely at consolidating financial conditions are excluded.

The funding program offers guarantees for equity investments, thereby supporting the financing of SME projects in Lower Saxony. The guaranteed participation must be at least EUR 50,000 and may not exceed EUR 2.5 million per participant. The duration of the participation typically ranges between five and ten years.

The assumption of participation guarantees is subject to specific conditions concerning both the application process and the ongoing obligations of the participant. These include applying through an equity firm, compliance with European subsidy rules, and comprehensive information and inspection obligations on the part of the company. In addition, processing fees and guarantee commissions must be paid.

Applications for a participation guarantee must be submitted to a private equity firm, which then forwards them to Bürgschaftsbank Niedersachsen. The Bürgschaftsbank examines the eligibility and risk involvement of the project, with the decision on assuming the guarantee being communicated to the equity firm (KBG).

The funding program is legitimized by a specific guideline from Bürgschaftsbank Niedersachsen, which regulates the assumption of participation guarantees. This guideline sets forth the conditions and procedures under which guarantees are granted, also taking into account comprehensive European subsidy rules and counter-guarantees from the federal government and the state.