Rescue and Restructuring of Small and Medium-sized Enterprises

This funding program is aimed at companies in economic difficulties with a registered office or permanent establishment in the Free State of Saxony. Primarily, small and medium-sized enterprises (SMEs) are supported, and in exceptional cases, larger companies of high structural and labor market policy importance may also receive support. The goal is to support liquidity, preserve jobs, and restore long-term profitability.

Measures for the rescue and restructuring of companies are funded. This includes the provision of loans for liquidity support and the implementation of restructuring plans, as well as grants to cover the costs of preparing insolvency plans or restructuring concepts. The funding aims to make companies profitable again and secure jobs.

The funding program offers both loans and grants. Loans can amount up to 2 million Euros and serve for rescue or restructuring. Grants are intended for the preparation of insolvency plans and can reach up to 10,000 Euros with a maximum funding rate of 50 percent of eligible costs.

To avail of the funding, certain conditions must be met, including the company's existence in the market for at least three years (for loans), the submission of a restructuring plan for restructuring loans, and compliance with the De minimis Regulation for certain types of aid. Requirements for own contributions and burden sharing also apply.

The application for funding must be submitted to the Sächsische Aufbaubank – Förderbank – (SAB). The SAB decides on the eligibility and worthiness of funding within the scope of its due discretion and available budgetary funds. The grant is awarded through a private-law loan agreement.

The funding program is based on a guideline from the Saxon State Ministry for Economic Affairs, Labor and Transport dated December 8, 2015. It is also embedded in various overarching legal frameworks, ranging from the Saxon Budget Code to European aid regulations.