Guarantees for Employee Participations (Employee Participation Program)

The program targets employees and their employers in small and medium-sized enterprises (SMEs) in commercial businesses or liberal professions in Thuringia. The goal is to strengthen employees' identification with their company, promote wealth creation for employees, and improve the equity base of companies.

Employee participations that resemble or represent balance sheet equity, such as silent partnerships or participation rights, are funded. The participation funds must be used for operational investments or to ensure the company's working capital requirements. The focus is on SMEs with good market prospects and qualified corporate management.

Funding is provided in the form of a guarantee, covering up to 80 percent of the paid-in participation amount and contractually secured participation returns. The maximum guarantee amount per company is EUR 250,000, with a term of up to 15 years and a minimum participation term of five years.

Specific requirements must be met to apply for a guarantee, including participation in a Thuringian SME, a minimum duration of employment, and the nature of the participation as balance sheet equity. The program is subject to the European Union's de minimis rules.

The application procedure involves the joint submission of applications by employee representatives and companies to Bürgschaftsbank Thüringen GmbH. Approval is granted by a Guarantee Committee after comprehensive review and expert opinion.

The Employee Participation Program is regulated by specific guidelines of the Free State of Thuringia, which are based on the Thuringian State Budget Code and consider European de minimis aid regulations.