Assumption of Equity Guarantees

This program for the assumption of equity guarantees targets small and medium-sized enterprises (SMEs) in the commercial sector, horticulture and landscaping, start-ups, and members of liberal professions. The funding is geographically limited to North Rhine-Westphalia and aims to expand the equity base of companies or consolidate their financial situation to remain sustainably competitive and finance various projects.

The program supports a wide range of projects by providing guarantees for equity investments. Projects that strengthen the equity base and improve competitiveness are particularly eligible. Investments for financial restructuring are excluded. Projects at various development stages, from start-ups to commercialization, are funded.

Funding is provided in the form of an equity guarantee. The maximum investment sum that can be guaranteed is 1.5 million Euros, with the guarantee covering up to 70% of the investment sum. The term of the guaranteed investment is typically 7 to 10 years, with a maximum duration of 10 years.

Specific legal and financial conditions apply for claiming the equity guarantee. The company must be legally and economically independent. Processing and ongoing fees, to be borne by the investee, are incurred. There are also detailed information and inspection rights, as well as consent obligations for significant corporate changes.

The application for the equity guarantee is submitted via a private equity firm (KBG), which then forwards it to Bürgschaftsbank North Rhine-Westphalia. The Bürgschaftsbank reviews the applications, may obtain additional statements, and decides on the assumption of the guarantee, which becomes effective upon the legally valid investment agreement.

The funding program is based on the Guidelines for the Assumption of Equity Guarantees, which are applied considering federal and state counter-guarantee declarations and EU state aid regulations.