Anyone planning to build a property as an entrepreneur can benefit from subsidy measures – whether own funds, guarantees or debt financing: Support programs from various providers help to make real estate financing cheaper.
The benefits of funding with grants
Realizing projects cost-saving through debt financing, protecting one’s own collateral and equity, retaining flexibility in the overall set-up: The advantages of subsidies for companies wishing to implement their own real estate project are obvious. Nevertheless, many projects fail in financing planning or become unnecessarily expensive because subsidies have not been applied for or have been applied for too late. Ignorance of funding opportunities or the wrong adviser are often the reason.
Find the optimal funding opportunities in the real estate sector
The offers available for commercial real estate in the area of funding are extremely complex and complex. Of the more than 1,700 subsidy programs for corporate financing in Germany, there are various possibilities in the real estate sector, but these always depend on certain conditions. Here is a brief overview of which funding programs are eligible.
Whether bank loans, developer financing or project financing: There are different solutions to solving debt financing for real estate projects, which in certain cases can be supported by funding programs – depending on the type of real estate project. Different programs of the Kreditanstalt für Wiederaufbau (KfW) such as the KfW Entrepreneur Loan and various KfW efficiency programs for the areas of construction, renovation and conversion are possible.
There are also funding opportunities at the regional level: State promotional banks such as NRW.BANK or Investitionsbank Berlin offer promotional loans such as NRW.BANK.Universalkredit or IBB Berlin Kredit to companies domiciled in the respective federal state. Favorable interest rates, flexible terms and repayment-free start-up times are thus possible in various funding programs.
In addition to promotional banks, regional guarantee banks in all federal states support companies by guaranteeing loans, overdraft facilities or lease financing. For real estate projects such as the construction of a new warehouse or office building, these programs and guarantees, for example, for blank shares.
In addition to the development loans through promotional banks, there are further subsidy measures from the state. By way of example, the so-called non-repayable subsidies include the joint task “Improvement of the regional economic structure” (GRW). This program of the Federal Ministry for Economic Affairs and Energy specifically supports companies in structurally weak regions in improving their own infrastructure. Depending on the project, up to 90 percent of the project costs can be funded.
Funding received for real estate
Most grants are awarded according to the transit or house bank principle. Companies wishing to use a support program receive this from a request from a commercial bank at the relevant development agency. If the application is approved, the commercial bank passes on the good conditions of the development bank to the company. It is different with most grants: these are usually granted directly through the forgiving ministry. Here, entrepreneurs should pay attention to whether the federal or state ministry is the body that awards the funding.
You would like to use funds for your commercial real estate financing? Marchmain family will find the bank partner for you, who offers you the best conditions with the appropriate support program.