Funding opportunities at reduced interest rates for SMEs and startups thanks to Berlin Innovativ and SME initiative (around 200 million euros)
"Shoepassion", one of the companies receiving funds, specialises in high-quality full leather shoes. A loan provided by <link http://www.ibb.de/gruenden/Berlin-Kredit-Innovativ.aspx>Berlin Kredit Innovativ</link> enabled the company to expand its international operations by increasing stock levels and making the move from online sales to stationary retail with currently as many as four retail stores. "An exemption as regards the repayment of the principal in the first year aims to facilitate the start-up phase. What's good news as well is that there were no problems at all during the entire processing," said Tim Keding, Managing Director at Shoepassion.
After a successful pilot phase the Senate Department has now decided to continue the "Berlin Innovativ" funding programme by an additional ten million euros until 2016. As part of the SME offensive the programme aims at making a contribution to the competitiveness of Berlin-based companies, in particular with regard to digitisation, in order to strengthen the issue of Internet of Things. "Digitisation will fundamentally change industrial value chains and business models. This will particularly affect SMEs. Through the SME offensive we aim to support their investment activities and willingness to invest," explains Cornelia Yzer, Senator for Economics, Technology and Research in Berlin. In total, there are 200 million euros available for established companies and startups.
A maximum of two million euros
According to information by IBB, Berlin Innovativ is expected to succeed the previous pilot project at the beginning of June. Contrary to the preceding project the maximum credit amount was increased from one to two million euros. In addition, companies with up to 500 employees are eligible to apply for funds – previously, the number of employees was limited to 250. Jürgen Allerkamp, Chairman of IBB, is pleased to announce that "the SME initiative will substantially extend the funding opportunities for digitisation activities."