Equity Guarantees of Bayerische Garantiegesellschaft mbH

The equity guarantees of BGG Bayerische Garantiegesellschaft mbH support small and medium-sized enterprises (SMEs) in the commercial sector and horticulture in Bavaria. The goal is to strengthen the equity base for projects such as innovations, expansions, or company successions. Private equity investment companies that participate in these companies are eligible to apply.

The program supports a wide range of projects to strengthen the equity of SMEs and start-ups in Bavaria. This ranges from innovation projects to operational restructurings and company successions. The guarantee covers a large part of the investment amount but excludes certain restructuring costs.

BGG offers guarantees for investments by private equity investment companies to strengthen the equity base of Bavarian SMEs. The guarantee covers up to 70% of the investment amount, which can typically be up to €1 million, with a maximum term of 10 years.

Specific conditions apply to equity guarantees for both private equity investment companies and beneficiary companies. These include requirements for economic and legal independence, due diligence obligations of investment companies, information and audit rights, and compliance with EU state aid regulations.

The application procedure for equity guarantees is carried out through private equity investment companies, which forward the applications from the beneficiary companies to BGG. Comprehensive documentation of the company's situation and the project is essential to enable a thorough review of the guarantee assumption.

The equity guarantees of Bayerische Garantiegesellschaft mbH are based on specific guidelines and general terms and conditions, supplemented by re-guarantee declarations from the Federal Government and the Free State of Bavaria, and by compliance with European state aid regulations. These regulatory frameworks ensure the legal foundation and adherence to national and EU-wide provisions.