Guarantees from Bürgschaftsbank Sachsen – Guarantee

The program is aimed at founders and existing small and medium-sized enterprises (SMEs) in the Free State of Saxony. It serves to promote small and medium-sized businesses by supplementing or replacing missing or insufficient loan collateral for investments, working capital, business successions, and active participations. However, it is not intended for restructurings or the repayment of unguaranteed loans, unless it concerns projects whose first balance sheet entry was not more than three years ago.

This program offers guarantees for financing diverse entrepreneurial projects. This includes investments in tangible assets such as machinery and commercial real estate, support for business successions and active participations, as well as the securing of working capital and guarantees. The guarantee also extends to market-standard interest, commissions, and costs of the loan agreement.

Bürgschaftsbank Sachsen offers default and maximum amount guarantees to secure bank loans. The guarantee amount can be up to 80 percent of the loan amount or a maximum of 2 million euros, with funding rates varying depending on the financing purpose and company age. The guarantee periods are flexible and adapt to the financed project.

To receive a guarantee, applicants must demonstrate a viable business concept and provide the best possible collateral, including personal joint liability. The program is subject to specific regulations for loan administration and collateral provision and excludes companies that have not met previous EU aid recovery claims.

The application for a guarantee is made indirectly through the applicant's house bank, which reviews the application and then forwards it to Bürgschaftsbank Sachsen. The house bank plays a central role in monitoring the use of funds and compliance with conditions.

The guarantee program is based on the General Guarantee Terms and Conditions for Loans (ABB), which form a uniform framework for German guarantee banks. These provisions regulate the details of guarantee issuance and the associated rights and obligations of all parties involved.