The LfA Development Bank Bavaria is revising the terms and conditions for loans. Only one application is now required for each project in the areas of start-up, business succession, and growth financing.
The LfA grants loans of up to ten million euros, with interest rates starting at 1.0 percent. The fixed interest rate is fixed for up to 20 years. The development bank now also assumes higher credit risks than before: For loans up to two million euros, the LfA can assume 70 percent of the risk for start-ups and 60 percent for growth. The development loans are applied for, as usual, with the companies' main banks and are also granted through them. Bavaria's Minister of Economic Affairs and Chairwoman of the Administrative Board Ilse Aigner says:
"Start-ups and medium-sized companies are the driving force behind the Bavarian economy. With the LfA's improved funding offering, new business ideas and future investments can be realized even more easily. Companies thus benefit from unbureaucratic and rapid financing at favorable long-term conditions."
Dr. Otto Beierl, Chairman of the Board of LfA, explains:
"Funding must be simple, streamlined, and flexible. That's why we've restructured our start-up and growth funding program. From now on, only one application is required per project, and the conditions are very attractive. This is a significant improvement for Bavarian SMEs and their banks."
