The fund can invest directly in companies, with a total of up to €20 billion available for this purpose, and can provide guarantees, for which up to €26 billion is available. The Bayernfonds focuses particularly on medium-sized companies that are important to Bavaria as a business location. It is also structured to support companies that cannot access the federal bailout package.
The fund is monitored by a specially created control commission of the Bavarian State Parliament. The Bavarian Finance Agency is responsible for administering the fund, and applications and consultations are handled by the Bavarian Ministry of Economic Affairs.
Access criteria and application
In addition to companies with a balance sheet total of more than 10 million euros or more than 10 million euros in sales revenue, Startups Submit funding applications. The condition is that they were valued at a minimum of €5 million, including the capital raised through that round, in a financing round after January 1, 2017. However, all applicants must demonstrate that the threat to their company has a significant impact on the economy or the technological or economic sovereignty of the Free State of Bavaria. This must be justified accordingly in the application. Furthermore, the companies must not have access to any other financing options, including all other federal and state coronavirus support programs.
At the Application Companies should be aware that this will incur costs which they will have to bear even if the application is rejected.
"The Bavaria Fund will be an important building block for stabilizing the Bavarian economy. We will not allow successful medium-sized businesses to be brought to their knees by the coronavirus. With the Bavaria Fund, we are therefore opening the way for companies to access fresh capital. This additional financial leeway is urgently needed and will give companies breathing room during the crisis. Our goal is to secure jobs and retain entrepreneurial know-how in Bavaria. In this way, we will reduce the impact of the coronavirus crisis on the economy."
explains Bavaria's Minister of Economic Affairs Hubert Aiwanger.
