Financing principles for Mikrokredit Brandenburg

Transcription

1 Financing principles for Mikrokredit Brandenburg 1. Purpose, legal principles 1.1 As part of its SME policy, the State of Brandenburg supports the ability of small and mediumsized enterprises (SMEs) 1 to participate in the growth of regional, national and international markets as well as in innovative processes. Growth and employment in Brandenburg within the meaning of the Europe 2020 Strategy are to be promoted by the support of start-up projects, businesses succession and young businesses. 1.2 On behalf of the State of Brandenburg, the Business Promotion Bank of the Federal State of Brandenburg (ILB) grants loans under the operational programme of the State of Brandenburg for the European Regional Development Funds (ERDF) for the funding period Loans will be granted in accordance with the following legal provisions in their currently applicable versions: - Regulation (EU) No.1303/2013 of the European Parliament and of the Council of (OJ. EU No. L 347 of ), - Delegated Regulation (EU) No. 480/2014 supplementing Regulation (EU) No 1303/2013 of (OJ. EU No. L138/5 of ), - ERDF - Regulation (EU) No.1301/2013 of the European Parliament and of the Council of (OJ. EU No. L 347 of ), - Implementing regulation (EU) No. 821/2014 of with implementing provisions for Regulation (EU) 1303/2013, - Regulation (EU) No.1301/2013 of the European Parliament and of the Council of regarding the European Regional Development Fund with particular provisions in respect of the aim Investments in growth and employment and for repeal of Regulation (EC) No. 1080/ Regulation (EU) No. 1407/2013 of the Commission from for de minimis support (OJ. EU No. L 352 of ) in relation to the funding objects of this Directive. 1.3 The applicant has no legal right to the grant of a loan. The ILB will decide on the basis of its reasonable judgement, in light of the available funds in the microcredit fund established by the ILB. 1.4 A loan will only be granted where an opinion from the expert evaluator has been provided. 1.5 Any assignment or pledge of the loan to third parties is not permitted. 1 SMEs are small and medium-sized enterprises within the meaning currently defined by the European Commission. The definition in the Annex to the Commission s Recommendation of 6 May 2003 relating to the definition of small enterprises and small and medium-sized enterprises currently applies (OJ EU No. L. 124, p.36 of 20 May 2003). Pursuant to Article 2, para. 1 of this definition these are businesses which employ less than 250 people and either have an annual turnover of no more than 50 million euros or whose annual balance sheet does not exceed 43 million euros. Partner companies and connected companies are to be taken into account in this regard.

2 2. Subject of the financing 2.1 Operationally necessary investments and materials will be funded. 2.2 Debts such as the acquisition of land will not be financed. 2.3 Duplicate grants are not permitted. 3. Loan recipients 3.1 Loan recipients are SMEs and natural persons. At the time of application, the formation of the business must not have been longer than ten years ago. Persons who acquire an existing operation through business succession or partnership may also be loan recipients, as long as the transfer takes place between independent investors. 3.2 Loan recipients must be operating as a business or on a freelance basis, or intend to operate on these bases. 3.3 Formation of a second business (so-called second chance ) may count as formation of an independent livelihood, where no obligations from the first start-up affect the new start-up project. Any liabilities from earlier self-employment must therefore be settled in the form of an autonomous private settlement of debts or through the statutory residual-debt exemption procedure. 3.4 Where insolvency proceedings have been applied for or commenced over the assets of an applicant, no loan will be granted. This also applies to applicants who have submitted a statutory declaration pursuant to section 807 of the German Code of Civil Procedure (Zivilprozessordnung ZPO) or under section 284 of the German Fiscal Code (Abgabeordnung). 3.5 The following are excluded from financing: Agriculture and fisheries Lawyers and patent attorneys, notaries, auditors and accountants, Persons of businesses which offer financial services within the meaning of section 1, para. 1A of the German Banking Act (Kreditwesengesetz KWG) as well as finance business within the meaning of section 1, para. 3 KWG. Brokers and agents within the meaning of sections 34 c f of the German Trade Regulations (GewO), Providers of gambling and lotteries (section 33 GewO) and arcades and similar businesses within the meaning of section 33 i GewO. Automobile trade, Hire and sale of charter boats.

3 The following will also not be financed: The decommissioning or building of nuclear power stations, Investments for the reduction of greenhouse gas emissions from activities which are contained in Annex 1 of the Directive 2003/87/EC, The manufacture, processing and marketing of tobacco and tobacco equipment, Investments in airport infrastructure, unless they are related to environmental protection or are accompanied by the necessary investment for the mitigation or reduction of negatively ecological effects of airport infrastructure (Art. 3, para. 3 Regulation (EU) No. 1301/2013, Businesses in difficulties within the meaning of the Community guidelines on state aid for rescuing and restructuring firms in difficulty (EU pub. C249 of ), Applicants whose business idea/project teaches or otherwise spreads inhuman, racist, extremist or sexist ideas, Benefits in kind Eligibility Conditions 4.1 Personal conditions The applicant must have its business address, future business address or business premises (section 12 German Fiscal Code) in the State of Brandenburg, carry out the investment or the project in the State of Brandenburg, have the necessary knowledge and abilities concerning the start-up and operation of a business, also in respect of specialist knowledge and business leadership, for example through participation in relevant training and seminars, or through previous business experience or other qualifications which demonstrate the presence of the necessary knowledge and abilities (proved through certificates and CV) and hold at least 25.1% of the voting shares in the business. 4.2 Factual conditions The founder confirms that his/her self-employment has been achieved personally and independently and that he/she has no direct connection to an employer that is similar to an employee relationship and works or will work on his/her own account. Independent selfemployment will be assumed, provided that there are no circumstances which indicate that work is undertaken continually for the same customer without integration into another business. Otherwise it will be assumed that entry into the market has been made on the basis of a business activity The applicant has set out a meaningful, convincing business project, which as a minimum contains a formulated start-up idea or business project, profit and loss account or cash-based accounting for the last business year (existing businesses), 2 Benefits in kind in the form of the provision of employment services and the provision of goods, services, land and property, for which no cash payment can be evidenced through invoices or similar documents. (Art. 69 Reg (EU) N /2013)

4 a profitability forecast broken down by year for three business years and a liquidity forecast broken down by month for one business year, and a financing plan (itemised calculation containing the expenditure connected with the project and a summary of the intended financing, including the applicant s own equity investment ). This also underlies the conditions at No The applicant must provide an expert report from an expert evaluator which confirms the regional marketability of the product or service, the economic viability of the business, and the personal qualifications of the business person. The chambers of industry and commerce and chambers of trade are the expert evaluators. For applicants from the cultural and creative industries which are not involved in the chambers, the relevant subject expert in the Ministry for Economic Affairs and Energy of the State of Brandenburg will be responsible. 5. Type, scope and amount of financing 5.1 Financing will be provided in the form of an interest-bearing loan. The loan will be for at least 2,000 euros and at most 25,000 euros per project. Where microcredit has already been granted in accordance with these financing conditions, further credit can only be granted where repayment of the previous credit has been made in full. 5.2 Microcredit will be provided on the following conditions: - The loan duration can be up to five years. - Repayment can be delayed for up to six months. - The applicable interest rate for loan payments will be set by the ILB, taking into account financial and capital market developments. - No security is required from the loan recipient. - If the application is made by several shareholders, all shareholders will be jointly liable for the loan. - No application fees will be charged for the grant of microcredit. Microcredit will be paid in one lump sum to the loan recipient. - Early repayment is possible at any time. No early repayment penalties will be charged. The loan provider must be given at least one month s written notice of early repayment. 5.3 The loan will be granted as so-called de minimis aid. The aid value of the loan will be calculated from the amount of interest advantage for the loan recipient. The aid value will be notified to the grantee by a certificate. 6. Other eligibility provisions The loan recipient is required where grants or other support is received from another grant programme to retain its own records for each source of financing.

5 7. Process 7. 1 Application process The completed application documents for the loan application are to be sent following confirmation from the expert evaluator using the application form to: Investitionsbank des Landes Brandenburg Referat Existenzgründung Babelsberger Str Potsdam The application documents can be found on the website Applications, including the necessary documents, can be made in writing or via the customer portal of the ILB (see online applications). A summary of the expert opinion should be included in the application documentation. The project can be commenced following the confirmation of receipt from the ILB of the postal receipt of the signed application at the ILB, as well as the confirmation from the expert evaluator that an expert opinion has been provided. Permission for early commencement of activities does not give any legal right to a loan. The applicant shall bear all risks connected with this. The ILB is entitled to request further documents to complete and qualify the application documents. Should the applicant not respond within two months, the application can be declined on this basis. 7.2 Grant of loans The granting of loans is a matter of public law. 7.3 Claim and payment procedures The loan amount will be paid when the signed loan agreement has been returned, any documents provided have been completed, a valid direct debit (SEPA) mandate has been provided and, the founder has provided details of business registration or the confirmation of the Finance Office of an application for self-employment. 7.4 Proof of eligibility/verification rights The ILB shall be responsible for checking eligibility.