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ERP Promotional Loan for SMEs with Liability Exemption
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Loan
Last updated: 14.6.2025

The ERP Promotional Loan for SMEs with Liability Exemption from KfW Banking Group supports commercial enterprises, sole proprietors, and freelancers in financing investments, working capital, and business successions both domestically and internationally. It offers loans of up to EUR 25 million for investments and up to EUR 7.5 million for working capital, with KfW providing a 50 percent liability exemption for financing partners to facilitate lending.

Who is funded?

The program targets commercial enterprises, sole proprietors, and freelancers, both domestically and German companies and their subsidiaries, as well as joint ventures abroad. It focuses on supporting small and medium-sized enterprises (SMEs) according to the EU definition and aims to cover their financing needs for investments, working capital, and business succession.

What is funded?

The funding program supports a wide range of projects, from tangible and intangible investments to operating costs and business succession measures. It covers 100 percent of eligible costs, with certain types of financing and already completed projects being excluded.

Type and scope of funding

Funding is provided in the form of a loan and can amount to up to EUR 25 million for investments or EUR 7.5 million for working capital and inventories. A special feature is KfW's 50 percent liability exemption for participating financing partners, which facilitates lending.

Conditions and requirements

Eligible applicants must meet certain requirements, such as a minimum period of activity in the market and compliance with environmental and social legal standards. In addition, certain projects are excluded from funding. Applications are submitted via the house bank.

Application process

The application process for the ERP Promotional Loan for SMEs is two-stage. The application is first submitted to the house bank, which then forwards it to the KfW Banking Group for processing. An application must be made before the start of the project.

The legal basis of the ERP Promotional Loan for SMEs is KfW Merkblatt 366. This document defines the detailed conditions and guidelines for the funding program and is publicly accessible.

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Funding Overview

Maximum Amount

Maximum Amount:

25,000,000 EUR

Deadline

Deadline:

always open

Open Until

Open Until:

Ongoing

Award Channel

Award Channel:

Demand Driven Scheme

Region

Region:

Germany, International (for German companies, their subsidiaries or joint ventures)

Sectors

Sectors:

Other

Beneficiaries

Beneficiaries:

Commercial enterprises, sole proprietors, freelancers

Funding Stages

Funding Stages:

Implementation, Product Development, Infrastructure, Commercialization, Other

Funding Provider

Program Level: National

Funding Body: Federal Ministry for Economic Affairs and Climate Action (BMWK)

Managed By: KfW Banking Group

Additional Partners: Financing partners (banks and savings banks)

Website: KfW Bankengruppe