KfW Funding for Founders and Businesses

What Is KfW Funding?

KfW (Kreditanstalt für Wiederaufbau) is Germany’s federal development bank. It provides low-interest development loans for founding, investments, and growth, significantly cheaper than an ordinary bank loan. You do not get the loan directly from KfW but through your house bank.

Which KfW Programs Are There for Founders and Businesses?

The three most important are the ERP Start-up Loan StartGeld (067) for smaller start-ups of up to €200,000, the ERP development loan for founding and succession (077) for larger capital requirements and takeovers, and the ERP development loan for SMEs (365/366) for already established businesses.

All three run through the house bank principle (Hausbankprinzip) and offer long terms as well as repayment-free start-up years, which protect your liquidity in the start-up phase.

StartGeld (067) or ERP Development Loan (077): Which Fits?

StartGeld (067) covers a debt capital requirement of up to €200,000 and suits smaller start-ups. If you need more capital or are taking over a company, the ERP development loan for founding and succession (077) is the right choice.

Is KfW Funding Also Available for Existing Businesses?

Yes. For established businesses, self-employed people, and freelancers there is the ERP development loan for SMEs (365 without, 366 with a 50% liability exemption (Haftungsfreistellung) from KfW). It allows investments and working capital to be financed at low interest. Variant 366 requires two completed fiscal years.

Do I Need Equity for KfW Programs?

Formally, KfW requires no minimum equity; up to 100% of the costs can be financed. Because the loan runs through your house bank, however, the bank in practice usually expects 10–20% own funds. For takeovers the ratio is often less decisive, because the running business serves as collateral.

How Do I Apply for KfW Funding?

Through the house bank principle: you submit the application, before the project begins, to a bank or savings bank, which forwards it to KfW. The basis is a viable, bankable business plan. Projects that have already begun are no longer eligible.

We are start-up consultants, not a bank. We prepare your application to be bankable and accompany you to the bank meeting.

Equity: what KfW requires and what the house bank expects

For most programs (for example StartGeld 067 or the ERP development loan for SMEs), KfW requires no minimum equity; formally, up to 100% of the costs can be financed. However, because the loan runs through your house bank and the house bank shares the risk, the bank in practice usually expects 10–20% own funds before it commits. Equity improves creditworthiness, terms, and the likelihood of approval.

Exception for takeovers and succession: Here the equity ratio is often less decisive, because the running business with its cash flow and assets serves as collateral. We prepare your application in such a way that the house bank goes along with it.

KfW programs at a glance

The most important KfW funding routes in one place. We clarify in the free initial consultation which program fits your project.

KfW – The business plan as a basis (start-up & succession) Information page · KfW – orientation on business plans & development loans

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