How Can the ERP Promotional Loan for SMEs (365/366) Optimally Finance Your Business Acquisition?

Are you looking for suitable financing for your small or medium-sized enterprise? The ERP Promotional Loan for SMEs (365, 366) from KfW offers tailored support for investments, working capital, or even business acquisitions. This attractive funding program is available to existing SMEs as well as freelancers and startups.

Who is eligible for the ERP Promotional Loan for SMEs?

The ERP Promotional Loan for SMEs is specifically aimed at small and medium-sized enterprises as defined by the EU. This includes companies with fewer than 250 employees and an annual turnover below €50 million or a balance sheet total under €43 million.

In addition to established SMEs, freelancers such as doctors, lawyers, or consultants can also benefit from this funding program. It is also available to natural persons who wish to become self-employed as entrepreneurs or freelancers.

Compliance with the SME criteria is crucial and must be documented with a self-declaration of company size. Depending on your business structure, you can choose between a simplified self-declaration for independent companies or a detailed version with attachments.

What projects are supported by the ERP Promotional Loan for SMEs?

With the ERP Promotional Loan for SMEs, you can finance a wide range of business initiatives. Investments in fixed assets such as machinery, buildings, or IT infrastructure are comprehensively supported.

Financing working capital for your ongoing operations is also possible. This includes, for example, inventory, ongoing expenses, or other operational costs that secure your liquidity.

Particularly interesting is the ERP Promotional Loan for business acquisitions or the purchase of equity stakes. This makes it an attractive option for succession solutions or strategic expansions through acquisitions.

What documents do you need to apply?

For a successful application, you need to prepare various documents. The self-declaration of your company size is mandatory and proves your SME status according to the EU definition.

A De-minimis declaration confirms that you comply with the EU limits for state aid. This is important to ensure conformity with European state aid law.

If you are using multiple funding programs simultaneously, a cumulation declaration is required. For applicants who do not prepare financial statements, such as freelancers or small business owners, a consent declaration is additionally needed.

Other supporting documents, such as a proof of use (optional as a working aid) as well as the General Terms and Conditions for investment loans and ERP funds, complete your application. All required forms are available as PDFs and some are designed to be accessible.

How does the application process for the ERP Promotional Loan for SMEs work?

The path to the ERP Promotional Loan begins with your house bank as the first point of contact. Be sure to submit your application before starting your project, as retroactive applications cannot be considered.

Prepare all necessary documents carefully and allow sufficient time for the application process. Thorough preparation significantly increases your chances of a positive decision.

After submission to your house bank, your application will be reviewed and, if positively assessed, forwarded to KfW. KfW conducts a final review and decides on the granting of the promotional loan.

Upon approval, you will receive the commitment and can conclude the loan agreement. The disbursement then takes place according to your financing needs, enabling the implementation of your project.

What combination options does the ERP Promotional Loan for SMEs offer?

A particular advantage of the ERP Promotional Loan for SMEs is its flexibility in combination with other funding programs. You can combine it with additional public funding instruments as long as the cumulation rules are observed.

These combination options are documented through the aforementioned cumulation declaration. This allows you to create an optimal financing structure for your project.

Especially interesting is the possible combination with funding programs for business succession, such as the ERP Promotional Loan for Startups and Succession (077) in the case of acquisitions. This enables a tailored financing solution for more complex projects.

Compliance with the De-minimis limits is always an important prerequisite for funding. Keep these ceilings in mind when combining different funding sources.

What advantages does the ERP Promotional Loan for SMEs offer compared to other programs?

Compared to conventional bank loans, the ERP Promotional Loan for SMEs stands out due to its attractive terms. The favorable interest rates and long maturities significantly improve your liquidity situation.

Unlike the ERP Start-up Loan or the ERP Promotional Loan for Startups and Succession, the ERP Promotional Loan for SMEs is also available to established companies that have been on the market for some time. This makes it a universal financing solution for all SME phases.

The ability to finance both investments and working capital offers maximum flexibility in the use of funds. This is particularly valuable in dynamic market phases when investment priorities can change rapidly.

For business acquisitions, the ERP Promotional Loan for SMEs offers an interesting alternative or complement to specific succession programs. It can be especially used to finance investments after the acquisition.

Conclusion: Your optimal financing solution for growth and development

With the ERP Promotional Loan for SMEs (365, 366), KfW offers a flexible and powerful funding instrument for small and medium-sized enterprises as well as founders. The straightforward application documents and diverse uses make it an attractive financing option.

Particularly, the ability to combine it with other funding programs opens up opportunities for a tailored financing structure. Whether investment, working capital financing, or business acquisition—the ERP Promotional Loan for SMEs offers suitable solutions for a wide range of entrepreneurial challenges.

Take advantage of this funding program to further develop your company and remain competitive. With proper preparation and professional advice, the ERP Promotional Loan for SMEs can become an important building block for your entrepreneurial success.

Equity and Debt Financing

For various financing forms, also read: