OREANDA-NEWS. As of 1 December 2014, KfW will offer an improved version of its "ERP Start-Up Loan - Universal" credit product: With this improved product, business founders and young enterprises will be able to apply for loans at a reduced rate of interest up to and including their fifth year of business, which is two years longer than before. Interested parties can now also apply for up to EUR 25 million (previously EUR 10 million) to finance larger investments, takeovers and company successions, for example. This facilitates the handover of businesses to the next generation. "Small and young enterprises generally struggle to obtain credit. For young companies that experience tremendous growth during the first five years and thus have high funding requirements, financing this growth is a major challenge. This new offering is aimed at helping these companies approach this initial and extremely important consolidation and growth phase from a stronger position," says Dr Ingrid Hengster, member of the Executive Board of KfW Group. The ERP Start-Up Loan - Universal can be used to finance 100% of the investment costs, with a term of up to 20 years and at an effective interest rate of 1.26% (as of 24 September 2014).

In addition to the ERP Start-Up Loan StartGeld, the ERP Start-Up Loan - Universal is KfW's flagship product for start-up financing. The ERP Start-Up Loan StartGeld offers debt capital of up to EUR 100,000 at a favourable interest rate. This product meets business founders' demand for low credit volumes, and in order to make it interesting for onlending financing partners, KfW together with the European Investment Fund grants an 80% exemption from liability. KfW offers the ERP Start-up-Fund to young technology enterprises with equity capital requirements.