BAFA does not provide the coaching itself. Instead, the program reimburses the costs of business consulting. This allows entrepreneurs to turn to trusted advisors to further develop their business or overcome acute crises. However, advisors must re-register with BAFA starting in 2021. As part of the Bavarian pre-start-up and succession coaching program, a "List of Advisors for Founders in Bavaria" is available to interested founders.
In addition, start-ups and companies in difficulty are required to hold a free information session with a regional partner, such as the Chamber of Commerce and Industry, before submitting an application. The application itself is then processed via the online platform handled by BAFA.
Who gets what?
The specific grant depends on the assessment basis. This is €4,000 for young companies that have been on the market for less than two years. For existing companies from the third year after their founding and companies in difficulty, it is set at €3,000 per consulting focus. The funding rate for young and existing companies is 50 percent, meaning they receive up to €2,000 and €1,500, respectively, in reimbursement. For companies in difficulty, the funding rate is significantly higher at 90 percent. They can expect a maximum of €2,700 in funding.
During the extension period (i.e., until 2022), each company can only receive funding for one of the three types of advice – either as a start-up, as an existing company, or as a company in difficulty. However, companies that have already received advice before December 31, 2020, can apply for funding again during the extension period. All companies can utilize the assessment basis in several areas of advice. If they receive advice as a company in difficulty, they can submit a second application for funding for follow-up advice after receiving business rescue advice.
No extension of the special Corona rules
In the April It was decided that companies that had gotten into trouble due to COVID-19 should receive special grants. If they wanted to seek support from a business consultant, the Federal Office for Economic Affairs and Export Control (BAFA) would cover 100 percent of the costs up to a maximum of €4,000 net. This special regulation has not yet been extended and will therefore expire on December 31, 2020.
