Participation fund for entrepreneurs self-employed and start-ups – Business loan


There is a federal credit institution for the self-employed, small entrepreneurs and start-ups who want to set up their own business or project; the Participation Fund. Practitioners of the liberal professions and job seekers may also be eligible for the services of this institution.

The Participation Fund has been providing credit to people from the aforementioned categories for years, but the emphasis has shifted somewhat in recent years. At the initiative of the government, the services were greatly expanded with administrative, financial and technical guidance.

Who is the Participation Fund for?

Who is the Participation Fund for?

Several companies may encounter problems when they turn to a bank for a business loan. The Participation Fund meets them. The target group can be roughly divided into three categories:

Small businesses pose a high risk and will not always be able to get sufficient credit from a bank. The Participation Fund has a system of co-financing in which they supplement the credit provided and which they use to lower the threshold for the lender.

Starters are also a difficult category for lenders. Due to the lack of a company history, it is difficult to predict which direction the starting company will take. The Participation Fund therefore provides various starter loans and microloans.

Innovative companies form a separate category.

Innovative companies form a separate category.

Even though it is a large company that has achieved demonstrable success in the past; the nature of the innovation makes it difficult for a bank to make a proper assessment of the risks. After all, there is little or no knowledge of the market and the further development of the company is uncertain. To meet this group, the Participation Fund offers additional credit on risk capital provided by private investors.

The Participation Fund therefore not only grants loans itself, but also aims to facilitate lending by banks and private investors. In this way, this institution plays an important role in supporting the entrepreneurial spirit and, by extension, in keeping the national economy moving.

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