The ERP special fund, which has supported the German economy for over 75 years, will be equipped with a funding volume of around 12 billion euros next year. The funds are provided by KfW as low-interest loans or equity capital, aimed primarily at small and medium-sized enterprises (SMEs) and start-ups.
The loans feature particularly favorable conditions: long terms and a waiver of repayment in the initial years are designed to relieve businesses from the founding phase onward. Investments, working capital, and the digitalization of products and production processes are funded. In some key areas, entire projects of innovative companies are fully financed.
A practical example shows the impact: A young company used an ERP start-up loan to develop and test custom surface coatings for industry. The funding can also finance the purchase of construction machinery or vehicles, allowing startups to handle their first orders shortly after founding.
Source: Bundesregierung
