Guarantees by Bürgschaftsbank Mecklenburg-Vorpommern

This funding program is aimed at private investment companies that wish to support small and medium-sized enterprises, freelancers, and horticultural businesses in Mecklenburg-Vorpommern. The program aims to create or secure sustainably competitive, independent existences and strengthen their equity base.

The program supports investments in companies, covering the investment amount and contractually agreed income claims. Projects in various sectors, such as the commercial economy, among freelancers, and in horticulture, which contribute to strengthening the equity base and financing growth and innovation projects, are eligible for funding.

The program offers guarantees for investments, covering up to 70 percent of the investment amount and income claims, up to a maximum of 1.5 million Euros per investee. The maximum term of the guaranteed investment is 10 years.

Specific conditions must be met for the granting of guarantees, affecting both applicants (private investment companies) and investees (small and medium-sized enterprises, freelancers, horticultural businesses). These include requirements for the economic viability of the project, information and reporting obligations, and financial framework conditions such as processing fees and guarantee commissions.

The application for a guarantee must be submitted directly to Bürgschaftsbank Mecklenburg-Vorpommern GmbH. After receiving the guarantee certificate, the investment agreement must be submitted and the applicable fees paid. The invocation of the guarantee is subject to specific conditions that determine the failure of the investment or agreed returns.

The legal basis for guarantees by Bürgschaftsbank Mecklenburg-Vorpommern is formed by the Guideline – General Guarantee Provisions, valid since January 1, 2023. The program is also supported by counter-guarantees from the Federal Government and the State of Mecklenburg-Vorpommern and refers to commercial law provisions such as § 245 HGB.