Guarantees of the Investment and Structure Bank Rhineland-Palatinate

The guarantee program of the Investment and Structure Bank Rhineland-Palatinate (ISB) is aimed at commercial enterprises, craft businesses, housing companies, property developers, freelancers, and start-ups. The funding is tied to the location of Rhineland-Palatinate, as both the company's headquarters and the project must be located there. The goal is to enable economically and operationally sound projects by assuming credit risks.

ISB guarantees support both investment and working capital loans. The guarantee covers capital, interest for up to 12 months after loan termination, and contractual commissions. Penalties, deferment interest, or compound interest, as well as processing fees and legal enforcement costs, are excluded. The program aims to enable projects in various development phases that serve to finance investments or secure liquidity.

The program offers default guarantees for loans. The ISB provides guarantees ranging from a minimum of 2 million Euros up to 3.5 million Euros. The guarantee amount varies depending on the type of loan: 80 percent for investment loans, 70 percent for aval loans, and 60 percent for working capital loans.

To utilize the guarantee, both applicants and credit institutions must meet a series of conditions and obligations. These include compliance with state aid regulations, strict due diligence obligations in credit management and collateral assessment, and comprehensive reporting requirements to the ISB. Furthermore, specific regulations regarding budget utilization and changes to loan conditions must be observed.

The application procedure for the ISB Guarantee requires cooperation with the principal bank (Hausbank) or another credit institution. The application is forwarded by the credit institution to the ISB and evaluated there. The ISB checks the economic viability and fulfillment of the conditions. Decisions on the guarantee commitment and its conditions are communicated by the ISB, with deadlines for accepting the guarantee to be observed.

ISB guarantees are based on the 'General Guarantee Conditions of the Investment and Structure Bank Rhineland-Palatinate (ISB) Public Law Institution' from January 2012. These conditions are tied to the state aid regulations of the European Union and are partially counter-guaranteed by the state of Rhineland-Palatinate. Relevant laws such as the German Commercial Code (HGB), the German Banking Act (KWG), and the Minimum Requirements for Risk Management (MaRisk) also apply.