Since the beginning of the year, LfA has been supporting start-ups and business successions, small and medium-sized enterprises (SMEs), and freelancers with a new product, the Start-up and Growth Loan. This updated financing follows the previously separate Start-up Loan and Investment Loan programs.
Compared to the previous funding, the new loan program Uniform and simplified regulations for the funding of start-ups and established companies. This should simplify access to credit for companies and processing for the house banks. Unlike before, there is no minimum loan amount for the start-up and growth loan. The deployment period here and in other LfA funding programs has been increased to twelve months. The range of loan terms now extends from two to 20 years. In addition, fixed interest rates of up to 20 years are even possible. For loans of up to two million euros, the LfA can, if necessary, assume 60 percent of the credit risk through a liability exemption. Applicants who carry out projects in certain structurally weak Bavarian regions also benefit from additional reduced interest rates.
Since 1 January 2024, founders and companies can apply for the new start-up and growth loan through their house banks. credit is refinanced at low interest rates from the KfW ERP SME development loan.
Bernhard Schwab, Chairman of the Board of LfA, explains:
"Funding must be simple, lean, and flexible. That's why we've restructured our start-up and growth funding program. With the further optimized, streamlined, and standardized funding regulations in the new start-up and growth loan, we are creating a significant improvement for Bavarian SMEs and their banks."
