Business development programmes for social entrepreneurs
We are the first business development bank in Germany to support social enterprises in Berlin.
'Mikrokredit aus dem KMU-Fonds' at a glance
Loans to finance start-ups and growths
Up to EUR 25,000 (EUR 50,000 for knowledge-intensive/innovative companies) at fair interest rates
No customary collateral
Six-year term with one year redemption free
Can also be combined with the 'GründungsBonus' for start-ups and the 'IBB MicroCrowd' programme
'Mikrokredit aus dem KMU-Fonds' in detail
Financing for start-ups
- Founders of small or medium-sized commercial businesses (SMEs)
- Founders of freelance businesses
- Commercial or freelance businesses that have been on the market for no more than 7 years
and are opening or have an operating facility in Berlin.
Financing for growth
- Small and medium-sized enterprises (SMEs) in the commercial industries
- Freelance professionals
with an operating facility in Berlin.
Co-financing for investments and the related operating equipment as part of the following measures:
- Start-ups and consolidation projects
- Company takeovers, however, not between first-degree family members
- Expansion projects
- Pre-financing of specific contracts for existing companies
The project to be financed must be carried out at a Berlin-based operating facility.
What is not eligible for support?
- Re-financing and follow-up financing of projects that have already begun or have been completed
- Investments in companies in difficulty
- Investments in companies operating in the following sectors: agriculture, fisheries, aquaculture, coal, mining and tobacco
On behalf of the Senate Department in charge, IBB can grant micro-loans of up to EUR 25,000 (EUR 50,000 for knowledge-intensive/innovative companies).
- The latest interest rates can be found in the Overview of terms and conditions.
- Loans are usually limited to a term of 6 years, including one year redemption free.
- Repayments are made on a quarterly basis. Premature repayment in part or in full is generally not foreseen. In the event of premature repayment of the loan, the borrower will be charged a prepayment penalty.
- Applications must be submitted prior to commencing the project (for example, first binding order, conclusion of a purchase agreement, commencement of the innovation project, etc.).
- In order to apply, submit the completed application form along with the supporting documents (see checklist (german only)). You can apply online using the application process provided on IBB’s customer portal. Alternatively, you can download your completed application form and send this by post or submit it in person.
- Please submit all the required documents in their entirety. If your application does not contain the fully completed and signed application form and voluntary disclosure form along with your CV, we will return your application without any further examination for formal reasons.
- In the case of existing companies and company takeovers, we also require the latest commercial analysis and, if applicable, the annual accounts or income statements for the past two years.
- 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 invite you to a meeting. 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. After the meeting, you will be notified of the loan decision within a few working days.
Please contact us at the earliest possible date. Our Customer Centre will be pleased to answer detailed questions regarding the programme and assist you with your application.
Please note: Applications are accepted in German only.
In this context, 'knowledge-intensive companies' are defined as companies that belong to the industrial, commercial or services sectors who – compared to the average for the commercial sector in the EU-15 and the US, typically have a higher share [FN: More than 20 percent] of employees working in research, development, planning and design and/or have a higher than average share of employees who have graduated from university or a technical college. Companies from the industrial, commercial and services sectors with the following group key according to the classification of economic sectors (german only) are considered in this context to be 'knowledge-intensive companies'.
'Innovative companies' use the higher loan sum to manufacture, develop or launch applications, products, processes, methods or services that are entirely new, are not yet established on the market or have been substantially improved. These applications, products, etc. must be economically innovative and involve a technological or market-related risk of failure which must be evaluated by an independent expert. Alternatively, the companies have already been approved for funding under an innovation promotion programme (e.g. 'GründungsBONUS' for start-ups).
The high loan amount is generally not available to companies in the construction, hospitality, hotel and retail (unless mail order) sectors.
- 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.
Consulting and coaching are not mandatory. However, extensive preparation for a business start-up is viewed favourably in the credit decision. We recommend a coaching measure to accompany the project or financing.
If negative indicators exist regarding the founder, shareholder or company, such as
- negative 'Schufa' entries not removed,
- tax debts payable,
- judicial dunning proceedings,
- the submission of an affidavit due to payment arrears,
- ongoing company insolvency or private insolvency proceedings,
no financing will be granted.
If you are in arrears with your payments, this will lead to interest on arrears in accordance with the contract, possibly also to notice of termination and recourse to collateral. Insolvency will lead to termination and, if necessary, liquidation of collateral.
After completion of the project, proof of the contractual use of the loan must be furnished within 6 months on a separate form. Deviations of more than 20% per item from the contractually agreed project planning must be agreed in advance with IBB. In the event that proof of the proper use of the micro-loan cannot be furnished, IBB will be entitled to reclaim the loan in part or in full.
It is possible to combine a 'Mikrokredit aus dem KMU-Fonds' with business development measures by the federal government, the federal state and the European Union.