Hardship Loan

This funding program is aimed at micro, small, and medium-sized enterprises (SMEs) as well as freelancers with their registered office and business premises in Mecklenburg-Vorpommern. The funding aims to alleviate the financial burdens caused by sharply increased material and raw material prices and to ensure economic viability.

Essential operational expenses of companies and freelancers who have fallen into financial difficulties due to sharply increased material and raw material prices are funded. Certain conditions regarding material usage and the impact on the profit margin must be met to qualify for funding.

Funding is provided in the form of a loan, which can amount to up to 50 percent of the average annual turnover of the last three years, but is within clearly defined minimum and maximum limits. The loan is granted at a fixed interest rate over a maximum term of five years.

For the application and granting of the hardship loan, applicants must meet specific economic and administrative requirements, including proof of being affected by price increases and a positive forecast regarding economic viability. Special regulations also apply with regard to de minimis aid.

The application for the hardship loan must be submitted in writing to PricewaterhouseCoopers GmbH. The applicant must include a series of specific documents providing information on the economic situation and the impact of price increases. Approval is granted by the State Funding Institute M-V.

The hardship loan is based on a specific guideline from the State of Mecklenburg-Vorpommern, which regulates the granting of subsidies to mitigate special burdens due to increased material and raw material prices. This guideline defines the exact conditions and prerequisites for funding.