Minister of Economic Affairs Jürgen Barke has now provided Saarland SMEs with a new investment programme, amounting to a total of 90 million euros available from now onwards. The aim is to offer companies targeted support with investment in transformation and the future. The programme is part of the state government’s package for SMEs.
‘SMEs are the backbone of our economy. They represent innovative capacity and employment’, Minister Barke noted. ‘However, many companies are currently facing major challenges. The trend in interest rates means that pioneering ideas are in danger of falling at financial hurdles. At the same time, there is an increasing need for investment in digitalisation, climate-friendly technologies, research and development. It is therefore fantastic that the federal government is providing new impetus. We in Saarland are going one step further with the SME booster. By providing a total of 90 million euros, we are enabling a wide range of private investment and thus safeguarding the competitiveness of Saarland’s economy in a changing world.’
The programme is the fifth spin-off from the state government’s SME package and consists of two central components:
SME consortium programme (50 million euros)
The state is providing a consortium programme amounting to 50 million euros via the Saarländische Investitionskreditbank (SIKB). This is aimed at both SMEs and freelancers wanting to invest, especially in the fields of digitalisation, innovation, transformation and sustainability.
Funding is granted via risk sharing: SIKB takes on 25 percent of the risk, the state another 25 percent, and the main bank 50 percent. This partnership will enable additional funding to be mobilised via main banks, activating up to 100 million euros in investment funds.
Doris Woll, Chair of the Board, Saarländische Investitionskreditbank AG: ‘Strong SMEs, strong Saarland! The consortium programme helps SMEs fund investment in the key areas of digitalisation, innovation, transformation and sustainability. Banks and saving banks often do not have access to assessable collateral (such as real estate or machinery) in these areas. We can serve as a facilitator and funding partner in such cases.’
SME growth assistance (40 million euros)
The second component is being implemented by Strukturholding Saar’s subsidiary SBB (Saarland Bau und Boden Projektgesellschaft). It is offering 40 million euros specifically intended for use in real estate. Under this programme, SBB can acquire assets such as operational properties in order to free up urgently needed liquid funds, whilst also concluding long-term usage agreements.
Increasing the impact of loan capital enables investment totalling up to 200 million euros to be made. The target groups are companies that are demonstrably undergoing a process of transformation – for example, due to technological, environmental or structural changes.
Valentin Holzer, CEO of Saarland Bau und Boden Projektgesellschaft: ‘The current challenges for SMEs – from climate and technological change through to global upheaval – are as disruptive as the 2007 banking crisis or the 2020 coronavirus crisis in terms of importance and impact. One element common to all crises is that companies need additional capital to cover the cost of the impact for the workforce and business. With this new programme, we are providing SMEs with targeted, sustainable and very practical assistance with the necessary transformation process, by generating the liquid funds from the companies themselves. SBB will be drawing on its many years of successful experience with similar programmes whilst also ensuring that the state’s values are preserved.’
In addition to the new capital programme, Saarland’s SMEs still have access to tried-and-tested funding tools such as investment promotion, GuW Saarland, RegioInnoGrowth Saarland (RIG), the EFRE subordinated loans fund, and equity capital and guarantees.
For more information and to apply, visit: www.saarland.de/mittelstandspaket