I need a dollar: this is where founders get money

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To collect money for startup, there are many options available. Some types of financing are easier to implement than others. Because no one gives their money away. Investors want shares for their capital investment, business angels want a say, and banks want certain collateral or guarantees. Which financing fits the respective project depends on various factors. One important place to start is with the states' development banks, which often have a large toolbox of funding at the ready.

The development bank, also known as the state development institute, is the state counterpart to kfw bank, which operates throughout germany. Loans are granted here, which come from public funds. Some of these development loans do not have to be repaid, start repayment much later than usual loans or do without such collateral that a house bank would demand. So access to money through a funding bank is especially lucrative.

The way to the funding credit

In order to obtain such a development loan or also founder credit, the house bank is usually the first contact for founders and those interested in founding a company. Individual products offered by the development banks can also be applied for directly at the development bank. How founders reach the individual promotion funds, is to be examined thus always individually.

If the way leads over the house bank – which can be each bank or savings bank – it forwards the credit request to the responsible promotion bank, if it is convinced of the establishment project. If the development loan is approved, the loan commitment will go back to the house bank, which will handle other loan terms and disburse the development loan.

Now you know the concept of the development bank, all you need to know is what the development bank in your state has to offer. Therefore, we will introduce you to all development banks in germany in a three-part series. We begin with these six funding banks:

  • Berlin investment bank
  • Investment bank of the state of brandenburg
  • Investment and development bank of lower saxony
  • Mecklenburg-western pomerania state development institute
  • Investment bank schleswig-holstein
  • Saxony-anhalt investment bank

Today, we're highlighting six of a total of 16 funding banks

IBB: development bank in berlin

In germany's capital, investitionsbank berlin (IBB) is the responsible development bank for berlin's founders and those interested in starting a business. It focuses primarily on loan-based and equity-oriented financing. But IBB also supports small and medium-sized businesses in berlin with consulting services. The product range of the development bank is supplemented by several grant programs for the promotion of technologies and investments. Overall, the berlin development bank's focus is on companies operating in the health care industry, ICT, media, creative industries, optical technologies, transportation, mobility, logistics and the energy technology sector.

Selected IBB programs

For the target group of start-ups, young entrepreneurs and freelancers, IBB offers several funding products. The most important programs for founders include "berlin kredit", "berlin start" as well as the grants for "improvement of the regional economic structure (GRW)" and for research, development and market introduction of innovations ("pro FIT").

  • For those seeking financing for investments and working capital, the low-interest "berlin kredit" may be relevant. The loan can be used to finance items such as land, machinery, equipment, furnishings, materials or goods. Loan amounts can range from 100.000 euro and 1 mio. Euro lie.
  • Berlin start" is a low-interest loan offered in conjunction with a guarantee from BBB burgschaftsbank zu berlin-brandenburg. It can be used for investments, operating funds or company takeovers between 5.000 euros and 250.000 euros.
  • The joint task "improvement of the regional economic structure" (GRW) serves to support existing companies and start-ups with investment projects to create and secure jobs. Subsidies are available for investments of 10.000 euros.
  • Pro FIT early-stage financing" supports technology-oriented start-ups in building up their business infrastructure and financing general business operations. The total grant of 500.000 euros can be spread over two phases.

Other support services offered by investitionsbank berlin that fall within the scope of start-up support are:

  • Microcredit from the SME fund: short-term financing up to 25.000 euros
  • Berlin kredit innovativ: loans between 100.000 euros and 1 million. Euro
  • Per FIT project funding: grants of up to 400.000 and loans of up to 1 million. Euro
  • VC fonds kreativwirtschaft/technologie: open investments up to 3 mio. Euro
  • KMU-fonds: loan up to 250.000 euros (start-up) and up to. Euros (growth)
  • EFRE guarantee fund: guarantees for start-up/expansion investments
  • State guarantees: guarantee at a rate of 70% of the loan amount
  • Coaching BONUS: grants for business coaching sessions
  • Innovation assistant: funding for newly hired assistants
  • Transfer BONUS: funding for applied R&D projects
  • Interim financing of film productions together with ILB

ILB: development bank in brandenburg

The investment bank of the state of brandenburg (ILB) supports start-ups, freelancers and agricultural enterprises in brandenburg with subsidies. The support of the ILB covers outside capital in the form of loans and guarantees, grants and equity capital in the form of open or silent partnerships. But also free consultations and qualification offers count to the offer.

Selected ILB programs

The most important funding products for start-ups include the "brandenburg-kredit", the "BFB fruhphasenfonds brandenburg" and the "profit brandenburg" funding program. But also grants such as "grundung innovativ" are aimed at supporting brandenburg founders.

  • The "brandenburg-kredit" is an essential means of support of the ILB. It is to be used to finance a start-up, business succession, active participation or for working capital and investments. The loan amount for founders and smes up to max. 5 years can be up to 25 million. Euro amount.
  • The "BFB fruhphasenfonds brandenburg" is designed, among other things, to support early-stage R&D projects, company set-up, feasibility studies, prototype production, patent, market and competition research, completion of the business plan, process and product development or coaching with a maximum investment of up to. Euro to finance.
  • The "profit brandenburg" subsidy is used to implement technologically new ideas. The program is aimed specifically at projects in the phases of industrial research (grant), experimental development (loan), and production start-up, market preparation and market launch (loan). A loan can be granted for up to. Euros per project, a grant of up to 400.000 euros per project partner.
  • The grant "grundung innovativ" between 25.000 euros and 100.000 euro is aimed at innovative smes in the first three years. The funding topics target investments in tangible fixed assets, personnel costs for new jobs and consulting services by external consultants.

Further funding offers of the investitionsbank des landes brandenburg, which fall into the area of start-up funding, are:

  • Microloans: loans between 2.000 euro and 25.000 euros
  • BFB wachstumsfonds brandenburg: open/silent participation up to 3 mio. Euro
  • Brandenburg guarantee innovative: loans between 100.000 euro and 5 mio. Euro
  • GRW-G growth program: subsidy for expenditures between 60.000 euros and 2 million. Euro
  • Master craftsman start-up bonus: grant for start-ups/acquisitions by master craftsmen
  • Market development abroad and trade fairs: subsidy for trade fair promotion/market development
  • Brandenburger innovationsfachkraft: employment funding for working students/assistants
  • Brandenburg innovation voucher for scientific research/short R&D projects

Nbank: development bank in lower saxony

Investitions- und forderbank niedersachsen, nbank for short, is the universal development bank for the whole of lower saxony. In addition, the nbank in lower saxony is the point of contact for the funding programs of the european union, the federal government, the state and the local authorities. The tasks of the nbank include securing and improving the structure of the economy for small and medium-sized enterprises. Here, the focus is primarily on financing business start-ups. Investitions- und forderbank niedersachsen offers start-ups loans, support services and grants of up to.

Selected nbank programs

Mikrostarter niedersachsen" is a microloan of the nbank, which can be financed in the amount of 5.000 euros up to 25.000 euro can be borrowed. The loan can be used for expenses incurred in connection with the project for the establishment or expansion of or. Are available for company growth. This means that the money can be used for investments, working capital or training and further education. Another loan is the "niedersachsen-grunderkredit" (lower saxony start-up loan). This can be used to finance a business start-up, business succession, consolidation measures, investments and working capital of up to 500.000 euros are financed.

Nbank offers funding as an "integration project" to start-ups that want to create new jobs for severely disabled people, for example, by expanding their company. These are projects that take up the challenge of employing severely disabled people who have hardly any opportunities for integration on the general labor market. For the creation of such jobs, companies in lower saxony receive a personnel cost subsidy as well as a lump sum for the special expenses of severely disabled employees.

Development bank in mecklenburg-western pomerania

The landesforderinstitut mecklenburg-vorpommern is active on behalf of the state of mecklenburg-vorpommern in the fields of economy, housing and urban development, environment and energy as well as agriculture. The LFI offers support from the first overview consultation up to the individual tuning of a promotion concept.

Among others, the following funding offers of the mecklenburg-vorpommern state development institute are displayed when searching for funding for founders on the website of the development bank:

  • GA supplemental financing program
  • Joint task "improvement of the regional economic structure
  • Trade fair promotion
  • Company succession in the skilled trades (master craftsman premium)

IB.SH: development bank in schleswig-holstein

Investitionsbank schleswig-holstein supports the state of schleswig-holstein in its economic and structural policy development.

Selected programs of the IB.SH

The IB's main programs.SH are the start-up loan, the microloan, the investment loan and the working capital loan.

  • With the "start-up loan" the focus is on the start into self-employment. In addition to start-ups, the development bank also supports takeovers of existing companies, consolidation projects or active participations. Support is provided for all business start-ups in schleswig-holstein as well as for fixed-term financing within 5 years after the start of business operations. The maximum external financing volume per founder is 100.000 euros for investments and/or a maximum of 50.000 euros for liquidity requirements.
  • The "microcredit" supports the start of self-employment with a low-interest loan. In a simplified application procedure, the development bank supports not only start-ups but also takeovers and consolidation projects of existing companies within five years of their foundation. New establishments, assumption and stabilization of single enterprises or gbr establishments in schleswig-holstein are promoted. The loan can range between 3.000 euros and 25.000 euros amount.
  • The "investment loan" is aimed at promoting the commercial economy by granting low-interest and long-term loans. Co-financing of investments in the context of business start-ups, relocations, expansions, rationalization measures and reinvestments is supported.
  • The "betriebsmitteldarlehen" is intended to promote trade and industry by improving the financial structure of medium-sized companies. Long-term co-financing/refinancing of part of the inventories and long-term rescheduling of previously short-term financed investments are supported.

IB: development bank in saxony-anhalt

Investitionsbank (IB) sachsen-anhalt offers start-ups in saxony-anhalt a wide range of individual financing and support modules as well as start-up assistance from programs of the european union, the federal government and the state of saxony-anhalt. Up-to-date several different promotion products are to be found on the internet side of the promotion bank.

Selected programs of IB saxony-anhalt

  • "Saxony-anhalt IMPULS" is a loan for small and medium-sized businesses and start-ups. Hereby, founders, smes and freelancers can secure financing for necessary business investments, working capital or even expenses for research, development and innovation. The loan can be between 25.000 euros and 1.5 million. Euro amount.
  • With "saxony-anhalt IDEE", the development bank addresses start-ups, freelancers and smes with innovative ideas. In concrete terms, the aim is to bring innovative product ideas to market, secure financing and consolidate economic strength. This innovation loan is to prepare companies for the phase after product development. The loan can be between 25.000 euros and 1.5 million. Amount to euro.
  • "Sachsen-anhalt WACHSTUM" is a financing instrument for entrepreneurs who need additional funds for start-ups and growth. The loan between 25.000 euros and 1.5 million. Euro can be used for contract pre-financing, operating expenses, R&D expenditures, land, buildings, machinery, equipment and intangible assets.
  • Saxony-anhalt MUT" is designed to provide financial relief to companies through loans for advance order financing. The loan can be between 25.000 and 500.000 euros.