KfW ERP Mezzanine for Innovation (KfW Product Number 360)

With the ERP Mezzanine for Innovation, companies and freelancers are supported who have been in business for at least 2 years:

• with a seat in Germany.
• with a seat abroad for subsidiaries, branches, establishments or branches in Germany. The maximum limit for the group turnover is €500 million.

This funding product is not suitable for:

• Trust constructions
• So-called in-itself transactions, such as the acquisition of own company shares
• Refinancing or refinancing of already completed projects
• Financing of acquired contract developments

Projects that stand out from the international state of the art and those that are new to your company. Either you carry out the innovative project yourself or commission a third party to do so. Investments and operating resources are subsidized, such as:

• Personnel costs attributable to the project, as well as travel, material and IT costs
• Costs for research and development orders, for consulting services and similar external costs
• Costs for further development and improvement based on experiences in commercial use, costs for test series
• Measures for quality assurance
• Overhead costs, e.g. pro rata depreciation and leasing costs

Integrated Financing Package
The financing consists of 2 tranches:

• a classic loan (external capital)
• a loan with a largely equity character (subordinated capital) Shares of the tranches: up to and including €50 million annual turnover:
• 60% subordinated capital
• 40% external capital more than €50 million annual turnover:
• 50% subordinated capital
• 50% external capital Interest rates and term:
• You benefit from a fixed interest rate for the entire term.
• The interest rates are determined by your bank based on your economic situation and the quality of your collateral.
• The term is usually 10 years.
• No arrangement fee is charged. The program provides that projects that stand out from the international state of the art benefit from an additional interest subsidy. For more information on terms and interest rates, please refer to the conditions overview. Loan amount and disbursement:
• up to €5 million per project, minimum €25,000
• up to 100% of your eligible costs
• 100% disbursement after project progress For information on repayment, collateral and combination possibilities with other funding instruments, please refer to the link below.