Business Loans and Credits in Berlin 2026: IBB Berlin Start, KfW StartGeld and the IBB Mikrokredit, Explained in English
Berlin founders and small businesses can borrow from €5,000 to €1.5 million through public programmes, at fixed rates and with long repayment-free starts. The catch is that almost every rulebook, form and conditions sheet is in German. This guide explains the three routes that matter most in 2026, the Investitionsbank Berlin (IBB), the KfW and the IBB Mikrokredit, in plain English.
Key takeaways
IBB Berlin Start lends €5,000 to €1.5 million to Berlin businesses up to 7 years old, through your own bank, with a 70% guarantee from the Bürgschaftsbank Berlin.
KfW ERP-Gründerkredit StartGeld lends up to €200,000 to founders and businesses up to 5 years old anywhere in Germany, including part-time founders.
The IBB Mikrokredit lends up to €50,000 directly from the IBB, without going through a high-street bank, for Berlin businesses up to 5 years old.
The federal Mikrokreditfonds Deutschland stopped new loans on 30 June 2026. In Berlin, the IBB Mikrokredit is now the main public microloan.
Every programme must be applied for before you start the project. Signing a binding purchase contract, lease or equipment order first can disqualify you.
The programmes at a glance
IBB Berlin Start: €5,000 to €1.5 million · Berlin founders and SMEs up to 7 years old · 6–10 years · up to 2 years repayment-free · apply through your bank.
KfW ERP-Gründerkredit StartGeld (067): up to €200,000, of which max €80,000 working capital · founders and businesses up to 5 years old, full- or part-time · up to 10 years · up to 2 years repayment-free · apply through your bank.
IBB Mikrokredit: up to €50,000 · Berlin founders and businesses up to 5 years old, and Berlin SMEs for growth · usually 6 years · 1 year repayment-free · apply to the IBB directly.
KfW ERP-Förderkredit KMU (365/366): up to €25 million · established SMEs · apply through your bank.
Rates change often. On 16 September 2026, IBB Berlin Start cost 4.39% nominal, or 6.41% effective once the guarantee fees are included (IBB conditions sheet).
What can you use these loans for?
Public business loans in Berlin pay for the costs of starting, taking over or growing a business, not for private living costs or debts you already have. Typical uses are:
Investments: equipment, machines, vehicles, IT, and the fit-out of a shop, studio, practice or office
Working capital: stock, materials, marketing, rent and salaries until revenue comes in (KfW StartGeld caps this at €80,000)
Business takeovers: buying an existing business, for example from a retiring owner
Growth: a new location, a new product or service, or your first hires
None of these programmes refinances existing loans or costs you have already paid. If you need help with your own living costs while you start, look at the Gründungszuschuss (with ALG I) or Einstiegsgeld (with Grundsicherungsgeld) instead.
IBB Berlin Start: the main Berlin business loan
IBB Berlin Start is a fixed-rate loan of €5,000 to €1.5 million from the Investitionsbank Berlin, Berlin's state development bank, for businesses founded no more than 7 years ago. It can cover up to 100% of a project, including working capital.
Who can apply
Founders and small and medium-sized businesses in trade, crafts and the liberal professions, as well as freelancers. The investment must be in Berlin, and the business must have been founded no more than 7 years before the application.
What it pays for
Starting a new business
Taking over an existing business (except purchases between parents and children)
Equipment, fit-out and other investments
Working capital, such as stock, salaries and rent during the start-up phase
Terms
The loan runs for 6 to 10 years, with up to 2 years at the start when you pay only interest. The interest rate is fixed for the whole term.
The real cost of Berlin Start includes a guarantee. The Bürgschaftsbank Berlin guarantees up to 70% of the loan, which is why banks agree to it with little collateral. That guarantee costs a one-off 1.5% of the loan amount plus 1.75% a year. On 16 September 2026, this took the effective rate from 4.40% to 6.41% (IBB conditions sheet).
How to apply
You apply through your own bank (the Hausbank), not at the IBB. The bank checks your plan and creditworthiness, then passes the file to the IBB and the Bürgschaftsbank. The loan contract is with your bank. Submit the application, including the guarantee request, before the project starts: Berlin Start cannot refinance costs you have already paid (IBB).
KfW loans: StartGeld and the ERP-Förderkredit KMU
The KfW ERP-Gründerkredit StartGeld (programme 067) lends up to €200,000 to founders and young businesses anywhere in Germany, and up to €80,000 of that can be working capital. These limits were raised from €125,000 and €50,000 in late 2025 (Handwerksblatt). The KfW is Germany's federal development bank.
Who can apply
Founders setting up a business or freelance practice, full-time or as a side business
Businesses up to 5 years old
Founders taking over an existing business
You need to show the professional and business skills to run the company, usually through your CV and a business plan.
Terms
The loan runs for up to 10 years, with up to 2 repayment-free years. The KfW takes on 80% of the default risk from your bank, which makes banks far more willing to lend to a new business with little collateral (Foerdergenie). The interest rate depends on your risk class, which your bank assigns. Secondary sources reported effective rates of roughly 4.5% to 8.5% in early 2026; ask your bank for the current figure.
How to apply
Like Berlin Start, StartGeld is applied for through your bank, which forwards it to the KfW. The KfW does not accept direct applications. Some online-only banks do not offer KfW loans, so ask before you choose a bank.
For established businesses: ERP-Förderkredit KMU
Once a business is past the start-up phase, the ERP-Förderkredit KMU (programmes 365 and 366) funds investments and working capital for small and medium-sized businesses, with amounts up to €25 million. It is also applied for through your bank. Check the current terms on the KfW programme page before you speak to the bank.
Microloans in Berlin: the IBB Mikrokredit
The IBB Mikrokredit lends up to €50,000 directly from the Investitionsbank Berlin, so you do not need a high-street bank to agree first. For many founders, especially those new to Germany with a short credit history, that is its biggest advantage.
What happened to the federal Mikrokreditfonds?
The Mikrokreditfonds Deutschland, the federal microloan scheme, stopped issuing new loans on 30 June 2026. The government cited the growing audit requirements of EU funding rules and named no replacement (Bundestag, hib 572/2026). Many English pages still recommend it, so check the date of anything you read.
Which loan fits your situation
The right programme depends mainly on how much you need and whether a bank will back you.
Under €50,000, and your bank is hesitant: start with the IBB Mikrokredit. You deal with the IBB directly.
€50,000 to €200,000, and you have a bank willing to apply: compare KfW StartGeld with IBB Berlin Start. StartGeld has no separate guarantee fee; Berlin Start allows larger amounts and a 7-year age limit.
Over €200,000, or the business is 5 to 7 years old: IBB Berlin Start is usually the route in Berlin.
Established SME investing or expanding: look at the KfW ERP-Förderkredit KMU.
Combining loans with grants and benefits
Public loans can often be combined with other support, but not to finance the same costs twice. Two combinations matter most for founders coming from unemployment:
Gründungszuschuss: if you receive unemployment benefit (ALG I), the employment agency may pay this start-up grant alongside a loan. It helps with living costs while the loan funds the business.
AVGS-funded founder coaching: with an activation voucher from the Agentur für Arbeit or Jobcenter, coaching to build your business plan and financial forecast can be fully paid for. A strong plan is what banks, the IBB and the KfW look at first.
If a bank wants more security than you can offer, the Bürgschaftsbank Berlin can guarantee part of a loan; in Berlin Start this guarantee is built in.
How to apply, step by step
A public business loan in Berlin usually takes several weeks from the first meeting to the money arriving, and your business plan decides most of the outcome.
Write a business plan with a 3-year financial forecast. Include start-up costs, a monthly liquidity plan, and how you will repay. Banks read the numbers before the story.
Work out what you need, and when. Separate investments (equipment, fit-out) from working capital (stock, rent, salaries in the first months).
Choose the route. For the IBB Mikrokredit, apply to the IBB directly. For Berlin Start or KfW StartGeld, book a meeting with a bank that offers public loans.
Apply before you commit. Do not sign purchase contracts, leases or large orders until the application is in.
Prepare your documents. ID and residence permit, CV and qualifications, business plan, forecast, and for existing businesses the latest accounts (BWA) and tax returns.
Attend the interview. Expect questions on your experience, your market and your numbers. Bring someone who knows the plan if your German is limited.
Sign and draw down. The contract is with your bank (Berlin Start, StartGeld) or the IBB (Mikrokredit).
Common reasons applications fail
Starting too early: costs incurred before the application are not funded.
A thin financial plan: no liquidity plan, or revenue assumptions without evidence.
No relevant experience shown: lenders need to see you can run this specific business.
Credit problems: negative SCHUFA entries or unpaid taxes.
Residence status: if you are not an EU citizen, your residence permit must allow self-employment; check this before applying.
Frequently asked questions
Can foreigners get a business loan in Berlin?
Yes. IBB and KfW programmes do not require German citizenship. You need a Berlin business location (for IBB programmes), a residence status that allows self-employment, and enough credit history for the lender to assess you.
Do I need a German bank account to apply?
For IBB Berlin Start and KfW StartGeld, yes: you apply through a house bank in Germany such as, Sparkasse, Volksbank, Commerzbank that offers public loans. (Please be aware if you are with Neobanks such as N26,then it is not possible, you need to find other House banks to apply)For the IBB Mikrokredit you apply to the IBB directly, but you still need a German business account to receive and repay the loan.
What is the easiest public loan to get as a new founder in Berlin?
The IBB Mikrokredit, for amounts up to €50,000, because you do not need a bank to agree first and no standard bank collateral is required.
What is the interest rate on IBB Berlin Start?
On 16 September 2026 it was 4.39% nominal and 6.41% effective including the Bürgschaftsbank guarantee fees. Rates are fixed for the full term but change for new loans.
Is the Mikrokreditfonds Deutschland still available?
No. It stopped issuing new loans on 30 June 2026. In Berlin, the IBB Mikrokredit is the main public alternative.
Can I apply after I have already started my business?
Yes, as long as the specific project has not started. Berlin Start covers businesses up to 7 years old and StartGeld up to 5 years, but neither refinances costs you have already paid.
Can I combine a loan with the Gründungszuschuss?
Yes. The Gründungszuschuss supports your living costs if you receive ALG I; a loan funds the business itself. You can apply for both.
Do I need a business plan in German?
Banks and the IBB generally expect German documents. An English plan can be a working draft, but plan for a German version before you apply.
Next steps
Berlin has some of the best-funded public loan programmes in Germany, but they reward founders who prepare in German, apply in the right order, and arrive with solid numbers. Start with how much you need, choose between the IBB Mikrokredit, KfW StartGeld and IBB Berlin Start, and get your business plan ready before you speak to any lender.
At Rizing, we help English-speaking founders in Berlin prepare business plans and financial forecasts for IBB and KfW applications, in English and German. If you are registered with the Agentur für Arbeit or Jobcenter, this founder coaching can be fully funded with an AVGS voucher. We also proivde review of your business plan and the finance forecasting. Book a free call to check which programme fits your business.
This guide is general information, not financial or legal advice. Programme terms change; check the IBB and KfW pages or ask your bank before applying. Last checked: 13 October 2026.
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