aws guarantee – specific terms and conditions – doubling of equity

This information provides an overview of the specific conditions “doubling of equity” for the program „aws guarantee“.

Support the financing of projects of young enterprises up to 6 years after their establishment. Equity, that has been raised for the project, can be doubled by a loan in the same amount. For this loan aws provides a guarantee of 80 % of the loan amount. The funds can be used for the purchase of tangible and intangible assets as well as for the financing of working capital.

SME up to 6 years after their establishment or takeover (in case of takeovers there must be a change of control). Establishments of companies that only took place formally (eg. spinoffs from an existing company, change in the legal form of a company) cannot be supported.
Proofing of equity investment
Equity can be invested by the existing investors as well as by other private investors. Equity means all investments in cash on the capital account (fixed capital and reserves) or in the form of quasi-equity. Quasi-equity has to be invested for a term of at least 10 years, has success-based interest only and is subordinated to other liabilities of the company in case of insolvency
Equity from Crowd-Investing-transactions is considered eligible.

Financing amount

Up to 80 % of a loan of up to EUR 2.5 mio per SME.
The amount of the loan is limited by the equity invested in the last two years (the date of the investment contract and the effective cash payment have to be within the term). Loan- and lease-funding after equity investments reduce the eligible equity. Up to 80% of a loan amount of up to EUR 2.5 million per SME. In the case of takeovers also equity invesments are eligible that were used for the purchase of shares.
For the loan guaranteed no collaterals are necessary on the side of the enterprise. Especially no personal guarantees of the entrepreneurs as long as the criteria for the doubling of equity (no selling of majority shares, no unplanned capitaldraws). For the risk share of the bank, the bank can take collateral independent of the guarantee of aws.

Term
Up to 10 years, longer grace periods are possible

Eligible Costs

All costs and investments like fixed assets, working capital etc, but no business restructuring.

Costs

Processing fee: starting with 0.25 % of the amout to be financed, one-time fee
Guarantee fee: starting with 0.6 % p.a. fixed plus 1 % p.a. when this fee is covered by the annual profit

Projects that do not show an appropriate risk contribution from the main shareholders/proponents of the company are not eligible. The amount of this risk contribution depends on the financial capacity (financial situation) of the persons concerned, the degree of dependency of the company on these persons (the higher the dependency, the higher the risk contribution) and the risk content of the project.