ERP Participation Program
The ERP Participation Program by KfW Banking Group supports small and medium-sized enterprises (SMEs) in Germany in strengthening their equity base. It enables the financing of innovations, growth, structural change, and business successions through equity capital provided via private equity firms. This unique indirect funding process through specialized financial partners distinguishes it from other initiatives.
Who is supported: Target Groups and Scope
The ERP Participation Program primarily targets privately owned small and medium-sized enterprises (SMEs) in the commercial sector with their registered office in Germany. It aims to expand their equity base and consolidate their financial situation. Start-ups and companies planning a business succession can also benefit.
What is funded: Project Types and Eligible Measures
The program supports a variety of projects aimed at strengthening the equity base and financial consolidation. These include innovation projects, the development of new products, and measures for business establishment or expansion. Structural change and business successions are also eligible for funding.
Type and Scope of Funding: Financial Parameters
The ERP Participation Program offers equity capital as a financial instrument. The maximum participation amount can be up to 2.5 million Euros in exceptional cases, with the term of the participation generally not exceeding ten years. Private equity firms receive a refinancing loan from KfW for providing the capital.
Conditions and Requirements: Funding Guidelines
Certain legal and administrative conditions must be met for the application and implementation of the funding. These include, among others, regulations on the timing of the participation agreement conclusion, compliance with environmental and social standards, and the collateralization of the refinancing loan. Additionally, special regulations apply regarding the influence of private equity firms on management.
Application Process: Step-by-Step to Funding
The application process for the ERP Participation Program is indirect: companies seeking capital submit their applications to private equity firms. These firms, in turn, apply for a refinancing loan from KfW through a house bank. Certain forms and data lists must be submitted, and the participation agreement must not yet have been concluded at the time of application.
Legal Basis: The Foundation of the Funding Program
The ERP Participation Program is based on a specific guideline for ERP loans, which regulates the allocation of funds from the ERP special fund for promoting participations in small and medium-sized enterprises. In addition, the General Conditions for the Allocation of ERP Funds and the KfW exclusion list are relevant.
Similar Programs
No similar programs found.
Funding Overview
Funding Status:
Open
Maximum Amount:
2,500,000 €
Open Until:
Ongoing
Award Channel:
Demand Driven Scheme
Region:
Germany
Sectors:
Other
Application Type:
Single Applicant
Funding Stages:
Product Development, Commercialization, Process Optimization, Implementation, Scaling, Planning, Other
Funding Provider
Program Level:
National
Funding Body:
Federal Ministry for Economic Affairs and Climate Action (BMWK)
Managed By:
KfW Banking Group
Additional Partners:
Guarantee Banks
Website: