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Successful First Year of Hamburg's Funding Scheme for Startups and Corporate Succession

More than 160 projects in the first year. Credit limit of one million euro. Application for loans via home bank

The Hamburg Investment and Development bank (IFB Hamburg) and the Bürgschaftsgemeinschaft Hamburg (BG) have been successfully supporting companies with their funding programmes for one year. Launched in 2014, 160 projects have been supported to date with a total credit volume of around 13 million euros. The funds triggered off investments of approx. 25 million euro and secured 400 jobs. Furthermore, 200 jobs were newly created.

Growing Importance

“Against the background of demographic developments, the success of corporate successions is becoming increasingly important. Only then can we ensure that the expertise and know-how obtained will remain in Hamburg”, states the Hamburg Minister of Economy, Transport, and Innovation, frank Horch. According to forecasts, the succession of 3,350 companies will be taking place in the next decade, corresponding to a total turnover of about 16.6 billion euro, and approximately 86,000 employees being affected (source: HWB Unternehmerberatung 2014: The challenge of corporate succession in the economic regions of Hamburg and Schleswig-Holstein). This trend will underpinned by data recently presented by the KfW. In Germany, some 1.3 million owners of small and medium-sized companies in Germany are already aged 55 or older. Too few young entrepreneurs are move up the ladder.

Hamburg’s Offer

“Hamburg must not underestimate the demographic trend in the economy. We aim to ensure that promising projects will get the best promotion in our city and do everything so that that their financing needs will be met. Because the financing of corporate succession strengthens the location and secure jobs”, says Ralf Sommer, CEO of IFB Hamburg.

With the “Hamburg-Kredit Gründung und Nachfolge”, the IFB Hamburg offers low-interest loans up to 500,000 euros with a maturity of five to ten years, the IFB Hamburg. It is hedged by a guarantee of the BG for up to 80 per cent of the loan amount. The Hamburg Ministry of Economy, Transport and Innovation further improves loan conditions by subsidizing interest rates. To apply for the loan, please contact your bank. The credit limit is one million euro. Credits will only be granted to companies within the first five years after their foundation.

source and further detials:
Hamburgische Investitions- und Förderbank
Bürgschaftsgemeinschaft Hamburg GmbH

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