Investment Incentives

Chart: Funding Programs in Saxony for Investments, Technologies, the Labor Market

Source: Saxony Economic Development Corporation (WFS), Saxony State Ministry for Economic Affairs, Labor, and Transport

FLEXIBLE TOOLKIT: SUPPORT FOR INVESTMENT PROJECTS

Saxony offers a wide range of funding instruments for investment projects. Here, the focus is on the provision of direct subsidies which are designed to support companies precisely at those times when capital is needed most – during the start up phase when costs are incurred, for example, in conjunction with the establishment of production sites. Investment grants are, above all, made available within the scope of the Joint Task “Improving Regional Economic Structures” (GRW) . In addition, companies can take advantage of diverse labor market and technology funding instruments.

Please note: Detailed information on the below mentioned subsidy programs are available in German language only (all links lead to German explanations). The applications for all of these funds have to be done completely in German language. So, if you need any further information or need help with the application, please do not hesitate to get in contact (see footer of this page) with us. We will help you or at least make contact to the right partners for your project.

INVESTITIONSZUSCHUSS GRW – GEMEINSCHAFTSAUFGABE “VERBESSERUNG DER REGIONALEN WIRTSCHAFTSSTRUKTUR” [GRW INVESTMENT GRANT – JOINT TASK “IMPROVING REGIONAL ECONOMIC STRUCTURES”]

The Joint Task “Improving Regional Economic Structures” (GRW) is the key instrument of the German federal states for supporting investments in structurally weak regions.

Germany’s Federal Government and the federal states jointly support projects of commercial enterprises (including tourism) which contribute towards a well balanced infrastructure. The subsidies are designed as incentives for investments into the creation of permanent jobs and the support of innovations – to the benefit of the income of the people in these regions.

Detailed information (German)

SUBORDINATED LOANS TO IMPROVE THE REGIONAL ECONOMIC STRUCTURE FOR SMALL AND MEDIUM SIZED COMMERCIAL ENTERPRISES

The Federal State of Saxony grants low interest subordinated loans for investment projects of commercial enterprises which contribute to the creation and safeguarding of permanent jobs.

Co financed are investments into the establishment or expansion of corporate sites, into the acquisition of decommissioned corporate sites, and into the diversification of production or the fundamental conversion of production processes.

These subsidies are based on the framework plan of the Joint Task “Improving Regional Economic Structures” (GRW).

Detailed information (German)

SAB-BÜRGSCHAFTSPROGRAMM SACHSEN [SAXONY‘S SAB LOAN GUARANTEE PROGRAM]

If any standard banking securities are either not available at all or not available to the necessary extent, then Saxony’s Development Bank (SAB) will assume the requisite letters of indemnity to the appropriate creditors (for example, banks, loan institutions, and lessors). Guarantees will be assumed for loans, sureties, and the financing of leasing agreements for the following measures:

  • New investments, in specific cases for the supplementary financing of investments
  • Production equipment and facilities (cash loans, sureties, general purpose loans)
  • Contract-related materials for film and television productions (media guarantees)
  • Consolidation measures in individual cases
  • Replenished / newly issued overdraft facilities on current accounts / surety limits if there is a need for additional financing due to the acceptance of export orders

Detailed information (German)

GUW - GRÜNDUNGS- UND WACHSTUMSFINANZIERUNG [GUW START-UP AND GROWTH FINANCING] AS WELL AS LIQUIDITY SUPPORT MEASURES

Supported by the Federal State of Saxony, business founders are not only able to become freelancers or to establish a small and medium sized enterprise (SME), but to also compete successfully on the market, and to expand and grow with the help of such funding. Towards that end, loans for investments, production equipment and facilities as well as liquidity support can each be granted up to an amount of 2.5 million euros per loan. These loans are refinanced on the basis of the “ERP-Gründerkredit – Universell” [ERP Business Founder Loan – Universal] and “KfW-Unternehmerkredit” [KfW Entrepreneurial Loan] programs and additionally reduced with the help of the Federal State of Saxony.

Detailed information (German)

MITTELSTANDSRICHTLINIE - ELEKTRONISCHER GESCHÄFTSVERKEHR (E-BUSINESS) - [“MITTELSTANDSRICHTLINIE” DIRECTIVE ON FINANCIAL AID FOR SMES – ELECTRONIC COMMERCE (E-BUSINESS)]

With its “E-Business” program, the Federal State of Saxony supports SMEs in introducing and further developing advanced information and communication technologies.

Subsidies are granted, for example, for the planning, conceptual design, and preparation of projects, the purchase of software, or the introduction of developed solutions.

   

Detailed information (German)

TECHNOLOGY FUNDING

With considerable applied technology funding, the Federal State of Saxony promotes the innovation activities of Saxony’s business community. The requisite instruments include, for example, R&D project funding, technology transfer funding, the “InnoPrämie” innovation grant as well as the support of “Innovation and Transfer Assistants,” “InnoManagers,” “InnoExperts,” and “InnoTeams.”

   

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LABOR MARKET FUNDING

If new employees are to be optimally qualified or long-term employees of a company are to be prepared for new tasks and duties, then the Federal State of Saxony and the Federal Employment Agency (BA) provide diverse funding options. For example, also when it comes to the employment of unemployed persons or the recruitment of R&D staff.

   

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Your Contact Person

Lippert, Andreas
Andreas Lippert
Acquisition, Inward Investment
Phone: +49 (351) 2138-211 Fax: +49 (351) 2138-219
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