Berlin Kredit Transformation

The loan is refinanced at a low interest rate from IBB funds, with a partial counter-guarantee under the EU’s InvestEU programme. The borrower’s creditworthiness and the quality of the collateral are reflected in seven pricing categories. The loan is granted with a customer-specific interest rate within the scope of the maximum interest rate in the respective price class. Please refer to the terms and conditions for current interest rates.

• The loan is paid back after a grace period in equal quarterly instalments.
• During the grace period, only the interest on the loan amount is repaid.
• Early repayment of the outstanding loan amount, in whole or in part, is possible subject to payment of an early repayment penalty.

Working capital can be financed to cover, for example, raw materials, goods, inventories or other components of current assets. However, the financing must relate to an expansion or growth of the business.

An expansion may be assumed if:

• The working-capital financing corresponds with investments.
• An order book is pre-financed, and this contributes to an increase in turnover.
• An additional business purpose is pursued, or the funds are used to develop a new business area or market, or for new projects or developments.

Conventional working-capital financing, such as an overdraft facility or revolving credit facility for existing businesses, is excluded.

Company takeovers and investments between independent business partners can be financed provided that a significant amount of additional new capital is contributed.

IBB grants an optional repayment concession of 2% of the approved loan amount, subject in all cases to a maximum of EUR 300,000, if one of the ecological and/or social sustainability criteria specified in the information sheet under “Nachhaltigkeitskriterien für den Tilgungsnachlass” is met.

The repayment concession increases to 5% of the approved loan amount if, in addition to meeting one of the sustainability criteria for the same measure, the project is not eligible for an investment grant under the Common Task “Verbesserung der regionalen Wirtschaftsstruktur” (GRW). Combination with other loans and guarantees under the de minimis regulation, as well as non-aid funding, is possible.

The repayment concession increases to 7% of the approved loan amount for companies that, in addition to meeting one of the sustainability criteria and the requirements described above, can demonstrate a commitment to sustainability. This can be shown through certifications, a voluntary sustainability report or by providing a carbon footprint analysis that includes a catalogue of targets and measures for reducing greenhouse gas emissions, prepared with the involvement of an external expert.

The company generally receives the repayment concession 24 months after the start of the loan term. This constitutes a partial debt relief, meaning the company does not have to repay the loan in full.

The repayment concession is initially approved subject to conditions in the loan agreement. The exact amount is calculated based on the gross loan amount determined after the IBB has completed its review of the use of funds in accordance with the programme requirements.

The repayment concession is applied to the most recently due installments under the repayment schedule, thereby shortening the loan term while keeping repayment installments constant, accompanied by a new interest and repayment schedule. If the outstanding loan balance is lower than the repayment concession at the time it is granted, the concession shall be limited to the current outstanding loan balance. Cash payment or bank transfer of the concession amount is excluded.

To receive the repayment concession, the company or its energy or tax advisers must provide documents demonstrating compliance with the defined sustainability criteria, for example:

• Invoices, purchase agreements and product information sheets
• Energy performance certificates, technical data sheets and audited calculations
• Self-audits, certifications and project plans
• A description of the investment and suitable evidence of the use of funds for investments that improve social accessibility
• A declaration regarding newly created jobs and proof of payment in accordance with collective agreements

For investments in energy-efficiency measures and renewable energy sources, quantitative information on estimated energy savings and reductions in greenhouse gas emissions is also required.

To claim a requested repayment concession, companies must submit the IBB’s “Bestätigung nach Durchführung” form to their bank to prove that the investment project was carried out in accordance with the funding purpose.

The applicant’s bank reviews the proof of use of funds in accordance with standard banking procedures and submits the form, signed by both the borrower and their bank, to IBB.

24 months after the start of the loan term, the repayment concession is credited, provided that IBB has been able to complete and approve the final assessment.

To claim a requested repayment discount, companies must submit the IBB form “Bestätigung nach Durchführung” to their bank. The bank reviews the documentation of use of funds according to standard banking procedures and submits the form, signed by both the borrower and bank, to the IBB. The repayment concession is credited 24 months after the start of the loan term, provided the final review is completed within this timeframe.

• The Berlin Kredit programme can generally also be combined with other funding programmes, for example with funding from the Common Task “Improvement of the Regional Economic Structure” (GRW).
• Guarantees from BBB Bürgschaftsbank zu Berlin-Brandenburg GmbH can also be applied for over the total loan amount as part of an integrated application procedure.

If the project financed under Berlin Kredit Transformation exceeds EUR 500,000 and involves significant investment in physical assets or the procurement of equipment, borrowers are required to install durable plaques or signs that are clearly visible to the public and indicate that the project has received support from the European Union.

At a minimum, the European Union emblem and the wording “Co-financed by the European Union” must be used.

The European Commission provides an online generator for creating durable plaques or signs. The link can be found here .