KfW's participation to the Juncker Plan
KfW continues to offer the “Entrepreneur Loan Plus” programme for innovative companies, which has been running in a pilot phase since 1 December 2014. The KfW Entrepreneur Loan Plus for financing investment and working capital will be made possible in the future by the InnovFin SME Guarantee facility of the European Union's Horizon 2020 programme (Framework Programme for Research and Innovation) and the financing instrument of the “Juncker Plan” (EFSI).
The special feature of this programme is that KfW, the European Investment Fund (EIF) and the European Fund for Strategic Investments (EFSI) together bear 50% of the onlending financial institutions’ credit risk, making it easier for them to lend.
A guarantee volume of EUR 125 million is available for the Entrepreneur Loan Plus until 2017, which translates into a secured commitment volume of EUR 500 million. The target group is the same: Established, innovative SMEs and self-employed professionals receive particularly affordable financing of up to EUR 7.5 million per project for investment and working capital. Companies are considered innovative for the purposes of the programme if they meet at least one of several criteria, for example if they have registered a patent in the last 24 months.
Interview with Member of the Executive Board of KfW, Dr Ingrid Hengster, on Germany's contribution to the "Juncker Plan"
European Fund for Strategic Investments (EFSI) launched in Germany
On 17 September 2015, KfW, on behalf of the German Federal Ministry for Economic Affairs and Energy (BMWi), signed an extension to the guarantee agreement with the European Investment Fund (EIF) for its promotional programme "ERP Start-up Loan – StartGeld" aimed at business founders and start-ups in Germany. The guarantee is now part of the Investment Plan for Europe and is Germany's first contribution to the "Juncker Plan".