'IBB MikroCrowd' at a glance
Combination of micro-loans and crowdfunding
IBB microloan: up to EUR 25,000 and one year redemption free
Crowdfunding: Additional financing via Startnext
Advance check on the market: Target group tests your idea!
'IBB MikroCrowd' in detail
- Founders of small or medium-sized commercial businesses (SMEs)
- Founders of freelance businesses
- Commercial or freelance enterprises
who are opening or already have an operating facility in Berlin.
Co-financing for investments and the related working capital as part of the following measures:
- Start-ups and consolidation projects
- Expansion projects
- Implementation of new projects or products and their marketing
The project to be financed must be carried out at a Berlin-based operating facility.
What is not eligible for support?
- Re-financing or follow-up financing of projects that have already begun or have been completed
- Restructuring financing
IBB can grant for eligible projects low-interest microloans of up to EUR 25,000 from the 'KMU-Fonds' co-financed by the ERDF of the European Union.
By combining this with crowdfunding, additional supporters can be gained for financing and feedback can be gathered from potential customers regarding market acceptance.
- The latest interest rates can be found in the Overview of terms and conditions (german only).
- Loans are usually limited to a term of 6 years, including one year redemption free.
- No handling fees or standby interest charged.
- Repayments are generally made on a quarterly basis.
- Curation on Startnext is free of charge.
- Voluntary commission for Startnext and fixed transaction fees for their payment processing when the funding target is reached
- Applications must be submitted prior to commencing the project (e.g. first binding contract, conclusion of a purchase agreement, commencement of the innovation project, etc.) because debt re-scheduling and refinancing are not possible.
- Please use our Application form (german only) which also contains a list of all the documents that must be submitted. If your application does not contain the fully completed and signed application form, the fully completed and signed voluntary disclosure form and your CV, we will return your application without any further examination for formal reasons.
- Alternatively, you can also submit your application online at www.ibb.de/kundenportal.
Please note: Applications are accepted in German only.
Which additional documents have to be submitted?
- In the case of existing companies and company takeovers, it is essential that the application also contain the latest commercial analysis or the monthly result statement and, if applicable, the annual accounts or income statements for the past two years, along with information on tax matters.
- When it comes to financing for start-ups, questions will be asked regarding the measures planned to achieve turnover as well as success factors, such as letters of intent, first orders, co-operations concluded. In as far as available, your annual accounts, as well as the latest company figures, will be used to examine your application and to assess future capital service capability.
- Once your application is received, you will be sent confirmation of receipt. As soon as all the documents are complete, they will be examined.
- If your project is considered to have good prospects for success, we will usually invite you to come to IBB for a meeting. After the meeting, you will be notified of the provisional loan decision within a few working days.
- After successful funding (when the funding threshold is reached), you will receive a loan agreement from Investitionsbank Berlin. With proof of fulfilment of the requirements (receipt of crowdfunding funds), payment will be initiated.
Project applications are submitted using the online form on the Startnext Partner Page 'IBB MikroCrowd'. After this, you will then be forwarded to Investitionsbank Berlin to apply for a micro-loan from the SME fund.
When it comes to crowdfunding, it is important to choose a realistic funding target, stating the required budget. Crowdfunding should amount to at least EUR 5,000 and come from at least 20 supporters.
In addition to providing proof of your expertise, you should also demonstrate the personal skills required of an entrepreneur and show how the start-up or your growth project has been carefully prepared.
Consulting and coaching are not mandatory. However, extensive preparation for a business start-up, e.g. by participating in the business plan competition or attending seminars by Berlin’s start-up consulting and micro-finance institutions, are viewed favourably in the loan approval process. Coaching support of at least 6 months (proof required) in the context of a coaching programme during the preparation and implementation of your project is also viewed favourably in the loan approval process.
As long as there are negative 'Schufa' entries not removed, tax debts payable, judicial dunning proceedings, the making of an affidavit due to payment arrears, ongoing company insolvency or private insolvency proceedings concerning the shareholder or company, financing will generally be rejected.
Repayment is effected in quarterly instalments. In the event of premature repayment of the loan, the borrower will be charged a prepayment penalty.
A default in payment leads to interest on arrears in accordance with the contract, possibly also to notice of termination and possibly to a recourse to collateral. Insolvency leads to extraordinary termination and, if necessary, liquidation of collateral.
The contractual use of the loan and the fulfilment of any conditions are monitored by the loan administrator ('KMU-Fonds' at Investitionsbank Berlin). If the contents or composition of the purpose of financing changes, the loan administrator must be informed.
If the costs of individual main items of the investment plan decrease substantially (more than 20% of the financed project), the funds saved can be used to cover the increased costs of other items subject to prior consent of the loan administrator ('KMU-Fonds' at IBB).
The loan administrator is entitled to reduce the amount of the loan on a pro-rata basis if the volume of total expenditure estimated in the investment plan is reduced or the share of other financing increases.
This programme can be combined with other business development programmes.