LfA Guarantees

The program is aimed at commercial businesses, freelancers, and start-ups in Bavaria who require support with loan collateral. The goal is to maintain and strengthen the economic diversity and performance of small and medium-sized enterprises in Bavaria by enabling economically interesting projects.

The program supports a wide range of financing projects that are relevant for the development and maintenance of Bavarian companies. This includes investments, business start-ups, company takeovers, and in certain cases, also working capital and consolidation measures. However, it is important to note that retroactive guarantees for already disbursed loans are not possible, and projects on the LfA exclusion list are excluded.

The program offers guarantees as a financial instrument, which can amount to up to 5 million euros and cover up to 80 percent of the loan amount. The term of the guarantees is generally a maximum of 15 years. Processing fees and aval commissions are incurred for the application and ongoing provision of the guarantee.

Applicants must meet various requirements, including professional and personal creditworthiness and orderly accounting. Particularly relevant are the EU state aid regulations, such as the De Minimis Regulation, which are decisive for the assumption of the guarantees. In addition, specific conditions apply to companies in difficulty that require restructuring or rescue.

The application procedure for a guarantee takes place in close cooperation with the applicant's house bank. The house bank is the first point of contact and forwards the application to LfA Förderbank Bayern after its positive assessment. The LfA then reviews the application and makes the decision on the assumption of the guarantee.

The funding program is based on the "LfA Guarantees - Approval Principles" of 02.05.2024, which serve as the central guideline. This is supplemented by further specific guarantee guidelines for commercial businesses and for undertakings in difficulty. These regulations are also subject to the comprehensive state aid provisions of the European Union.