Funding for SMEs through Loans (Funding Guideline Loans for SMEs – FRL DFM)

Last updated: 14.6.2025
Loan

The Free State of Saxony offers low-interest loans to strengthen the regional economy through the Funding Guideline Loans for SMEs (FRL DFM). The program supports small and medium-sized enterprises, start-ups, and freelancers with investments, consolidation of young companies, and financing of innovation and digitalization projects, partly co-financed by the Just Transition Fund (JTF).

Who is Funded

This funding guideline primarily targets small and medium-sized enterprises (SMEs) as well as start-ups and freelancers with a registered office or business establishment in the Free State of Saxony. The funding aims to strengthen the competitiveness of the Saxon economy, improve location conditions, and mitigate the effects of the transition to a climate-neutral economy in Saxony's JTF regions.

What is Funded

The guideline covers various funding items, each supporting specific types of projects. This ranges from business start-ups and consolidation to investments that contribute to job creation and preservation, as well as the implementation of innovative ideas and digital transformations in companies.

Type and Extent of Funding

Funding is provided in the form of low-interest loans, the amount, conditions, and required own contributions of which vary depending on the specific funding area. It is project funding in the form of co-financing, subject to certain maximum limits.

Conditions and Requirements

Funding is subject to various conditions relating to application submission, project implementation, and compliance with state aid regulations. These include ensuring overall financing, earmarking periods, and specific requirements for the respective projects.

Application Procedure

The application process is electronic, either directly with the Sächsische Aufbaubank (SAB) or through a cooperating house bank. The SAB is the central application and approval authority. There are no fees for the approval process.

The 'Loans for SMEs' funding program is governed by the guideline of the Saxon State Ministry for Economy, Labor and Transport. It is comprehensively legally secured by state and EU law provisions as well as by state aid regulations.

Similar Programs

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Funding Overview

Funding Status

Funding Status:

Open

Maximum Amount

Maximum Amount:

Up to 2,500,000 €

Deadline

Deadline:

always open

Open Until

Open Until:

Ongoing

Award Channel

Award Channel:

Demand Driven Scheme

Region

Region:

Saxony (Görlitz, Bautzen, Nordsachsen, Leipzig districts, independent cities of Leipzig and Chemnitz)

Sectors

Sectors:

Other

Application Type

Application Type:

Single Applicant

Funding Stages

Funding Stages:

Planning, Market Introduction, Scaling, Commercialization, Infrastructure, Process Optimization, Product Development

Funding Provider

Program Level:

Regional

Funding Body:

Saxon State Ministry for Economy, Labor and Transport (SMWA)

Managed By:

Saxon Development Bank – Funding Bank – (SAB)

Additional Partners:

Partner bank (house bank)

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