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State Guarantees for Commercial Enterprises in Difficulty (Non-Financial)
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Guarantee
Last updated: 14.6.2025

If your non-financial commercial enterprise is in difficulty and lacks sufficient financial collateral for a rescue or restructuring loan, the Free State of Bavaria can, under certain conditions, assume a state guarantee. These guarantees are intended to finance commercial undertakings carried out in Bavaria and include rescue, restructuring, and temporary restructuring guarantees.

Target Groups and Purpose of State Guarantees in Bavaria

These state guarantees from the Free State of Bavaria are aimed at non-financial commercial enterprises, including self-employed professionals, that have their registered office in Bavaria and are considered undertakings in difficulty. The program aims to enable the rescue and restructuring of these companies by securing loans when sufficient bankable collateral is not available. The funding is tied to an economic, social, agricultural, or cultural policy interest for Bavaria.

Eligible Projects and Areas

The program secures loans for the financing of commercial projects that serve the rescue or restructuring of undertakings in difficulty. This explicitly includes rescue, restructuring, and temporary restructuring guarantees. Loans already disbursed will not be subsequently guaranteed.

Type and Extent of Financial Support

The Free State of Bavaria provides default guarantees to secure loans. The guarantee rate is determined individually, with the approval of the Bavarian state government required for amounts exceeding 5 million Euros. The guarantee fee is at least 3 percent of the guarantee amount, and a one-time processing fee of 0.5 percent of the guarantee amount (minimum 250 Euros, maximum 25,000 Euros) is charged.

Important Conditions and Requirements

State guarantees are subject to strict conditions to ensure the proper implementation of projects and the repayment of loans. These include securing the overall financing, timely interest payments and amortization, equity participation, and compliance with EU state aid regulations. Furthermore, audit and information rights of the State Ministry and the LfA must be observed.

Application Procedure and Decision Process

The application for a state guarantee is submitted by the borrower to their house bank, which forwards it along with its declaration of willingness to grant the loan to LfA Förderbank Bayern. The LfA reviews the applications and obtains an expert opinion from the responsible State Ministry, which ultimately decides on the guarantee. For higher guarantee amounts, further approvals (Inter-Ministerial Guarantee Committee, State Government) are required.

The granting of state guarantees is based on the 'Guideline for the Assumption of State Guarantees in the Commercial Sector for the Rescue and Restructuring of Non-Financial Undertakings in Difficulty (Guarantee Guideline for Undertakings in Difficulty – BürgUiSR)' dated February 3, 2021. This guideline is supplemented and specified by various Bavarian and EU-wide legal provisions, particularly the Law on the Assumption of State Guarantees and Guarantees of the Free State of Bavaria, as well as EU guidelines for state aid.

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Funding Overview

Maximum Amount

Maximum Amount:

The amount of the guarantee rate is determined on a case-by-case basis. For amounts exceeding 5,000,000 €, the approval of the Bavarian state government is required.

Deadline

Deadline:

always open

Open Until

Open Until:

31.12.2025

Award Channel

Award Channel:

Individual Aid

Region

Region:

Bavaria (Germany)

Sectors

Sectors:

Other

Beneficiaries

Beneficiaries:

Commercial enterprises in difficulty and self-employed professionals

Funding Stages

Funding Stages:

Other

Funding Provider

Program Level: Regional

Funding Body: Bavarian State Ministry of Finance and Home Affairs (StMFH)

Managed By: LfA Förderbank Bayern

Website: LfA Förderbank Bayern