Other subsidy consulting

The DORUCON – DR. RUPP CONSULTING team also supports you in applying for other subsidies. These other subsidies include publicly subsidised equity investments, deficiency guarantees, indemnities and loans without risk from your house bank. Other subsidies also include subsidies for innovations. These can be obtained within the framework of various funding programmes at state, federal or EU level.

Publicly subsidised equity investments

Public investment companies, in German also often referred to as Mittelständische Beteiligungsgesellschaften (MBG), comprise private sector organisations and their organisations. The shareholders themselves are banks, associations, insurance companies and chambers of commerce. They provide the equity capital. In most cases, the capital investment is secured by the public sector with the help of guarantees and special refinancing.

In the case of public investment companies, the upper limit of the return is a maximum of twelve percent annually. Furthermore, the following applies to public shareholdings:

  • A direct participation only takes place in exceptional cases; the silent participation is customary
  • The investment starts at 50,000 euros and ends at 2.5 million euros
  • The public participation may not exceed the existing equity capital
  • The term comprises up to 10 years
  • The current interest rate is paid annually. At the end of the term, repayment takes place in the form of a contribution or as a repayment agreement over a period of a maximum of five further years
  • The nominal value principle applies

Other subsidy consulting DORUCON

Public investment companies cannot be compared with the risk capital provided by usual providers. In the case of publicly subsidised equity investments, silent partnerships are granted in return for an annual fee. The participation is designed as a nominal repayment of the contribution. The public investment companies do not earn from the increase in the hidden reserves of the company. Further advantages of this alternative financing instrument are the strengthening of equity capital, the protection of collateral and the increase of financial leeway. The inclusion of a dormant partner – such as a publicly subsidised equity participation – can thus improve the balance sheet ratio.

Deficiency guarantees

The deficiency guarantee, also known as the indemnity bond, is a special form of guarantee. Under this form of guarantee, the guarantor is liable only if the creditor defaults with his guarantee. The deficiency guarantor, on the other hand, does not have to raise the plea of advance action first. Instead, the creditor must prove that he unsuccessfully attempted to execute the principal debtor. Default guarantees in modified form are also an alternative means of financing. They are provided by guarantee banks and are used for the promotion of small and medium-sized enterprises and for business start-ups.


Liability exemptions improve the creditworthiness of companies, such as small and medium-sized enterprises (SMEs). This often makes it possible to grant a loan in the first place. This is of particular importance if your own collateral for securing the loan is not or not sufficiently available. As a general rule, applicants must be liable for their loan. However, if the collateral for the loan is not sufficient, state guarantees can be applied for via the Mittelstandsbank or the Förderbank der Bundesländer.

The following liability exemptions are possible for a loan:

  • Usually the house bank is 100% liable to the development bank or the Landesbank for the repayment of a loan
  • Some programmes exempt the house banks from liability, e.g. the Kreditanstalt für Wiederaufbau (KfW) Entrepreneur Loan provides an exemption of 50%
  • In the event of a loss, the respective bank and development bank shall bear the loss of the agreed ratio
  • The indemnity thus promotes the willingness of the bank to grant a KfW loan

If, on the other hand, a loan from KfW-Bank or the Förderbank is not covered by an indemnity, self-employed persons can apply to the Bürgschaftsbank for a guarantee for working capital and investments. The exemption from liability is between 50 and 80% here. In this way, the security and thus also the creditworthiness of a loan is improved.

Loans without the risk of your house bank

In order to obtain a loan from the house bank, it is necessary to provide proof of collateral. Particularly in the case of start-ups, loans for banks are associated with a high risk. For a loan to be approved by the house bank, the collateral must therefore be correspondingly high.

Other subsidy consulting DORUCON

Alternatively, however, there are risk-free forms of credit. These include, for example, the ERP start-up loan from the KfW-Bank. This loan is recommended by the Federal Ministry of Economics and Energy (BMWi), in particular for start-ups and young companies. The foundation of a new company or the takeover or consolidation of an existing one with a loan amount of up to 100,000 Euros is supported. However, companies that have been on the market for more than 5 years and companies from the agricultural sector are not eligible.

Grants for innovations

For technological innovations, there are extensive possibilities for technology promotion. These include various funding programmes which operate at state, federal and EU level. In concrete terms, these include the following funding programmes:

  • Central Innovation Programme for SMEs (ZIM)
  • SME instrument Horizon 2020
  • go-innovative (go-inno)
  • KMU-innovativ
  • WIPANO – Patent promotion
  • Environmental Innovation Programme (UIP)
  • Modernity Fund (mFUND)
  • Central Technology Programme Saar (ZTS)

In addition, funding is provided within the framework of special technical programmes e.g. with the subject of energy efficiency and other topics.

Are you planning an innovation project and need support with project financing? Contact us – we will be happy to help you.

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