# KfW Startup Loan (StartGeld 067): A Guide for Founders

> The KfW startup loan, officially ERP-Gründerkredit StartGeld (programme 067), lends up to €200,000 to new businesses in Germany and firms under five years old, with up to €80,000 for working capital. Part-time founders qualify too. You apply through a bank before the project starts. KfW covers 80 percent of the bank's risk, but you owe the full amount.

- URL: https://ohne-startkapital.de/en/funding/kfw-startup-loan/
- Language: en
- Updated: 2026-10-19
- Publisher: Ohne Startkapital (OnlineBuilders LLC, https://onlinebuilders.biz)

Up to €200,000, no equity required, a fixed rate for the whole term. On paper, KfW's StartGeld looks like the answer for anyone starting a business in Germany without savings. The catch is in how you apply. KfW does not lend to founders directly. It lends through your bank, and your bank has to want the deal.

That is where most applications quietly die, long before KfW sees them.

## What StartGeld finances

The key terms are on [KfW's programme page](https://www.kfw.de/inlandsfoerderung/Unternehmen/Gr%C3%BCnden-Nachfolgen/F%C3%B6rderprodukte/ERP-Gr%C3%BCnderkredit-Startgeld-%28067%29/) and in the programme 067 information sheet:

| Feature | Terms |
|---|---|
| Maximum | €200,000 per founder, up to €80,000 of it for working capital |
| Who | Start-ups, business takeovers and firms trading for less than five years |
| Full-time or part-time | Both qualify |
| Term | 2 to 10 years, with 1 or 2 repayment-free years depending on term |
| Interest | Fixed for the whole term; KfW publishes current rates daily |
| Disbursement | 100 percent, drawn within 12 months of approval |
| Commitment fee | 0.15 percent a month on undrawn amounts, starting six months after approval |
| Risk | KfW releases the bank from 80 percent of the liability |
| Combination | Not with other KfW or ERP programmes |

You can use it for investment, such as machinery, equipment or vehicles, and for running costs like rent, staff, marketing or advice. Stock and buying into an existing business are covered too.

This guide deliberately quotes no interest rate. Rates move with the capital markets, and any number here would be wrong within weeks. KfW publishes the current conditions in its rate overview.

## Why the bank is the bottleneck

The applicant at KfW is your bank, not you. The bank reviews your plan, decides whether to pass the loan on, and agrees collateral with you. KfW takes over 80 percent of the bank's default risk. The other 20 percent stays with the bank.

From the bank's side it is arithmetic. Lending €25,000 to a founder with no trading history means review work, advice time and residual risk, while the margin on a development loan is thin. Some branches will steer you towards an overdraft or a consumer loan instead. That is not inevitable, but be ready for it.

Expats face a few extra hurdles. Banks look closely at residence status and at German credit history (Schufa), which is often thin for people who arrived recently. Your residence permit also has to allow self-employment. Sort these out before the meeting rather than during it.

The most important point: the 80 percent risk release protects the bank, not you. You owe the full amount. If the business fails, you still repay it, and as a sole trader that means from your private assets.

## Preparing for the bank meeting

Your odds improve when you do the bank's homework for it. Bring:

- a business plan with capital requirements, financing plan and a three-year profitability forecast (KfW offers a template),
- a CV showing why you understand this business,
- evidence of demand, such as letters of intent, first orders or pre-sales,
- a list of possible collateral, even if it is modest,
- a month-by-month cash flow plan for the first 24 months.

Name the programme explicitly: "ERP-Gründerkredit StartGeld, programme 067". If the first bank says no, try another, ideally a local Sparkasse or Volksbank that regularly works with small businesses. The documents will be in German and so will the conversation, so bring support if you need it. KfW also runs a free advice line on 0800 539 9001, which explains the programme but does not lend.

Apply before you start the project. Contracts you have already signed for the things the loan is meant to pay for are no longer eligible.

## What a startup loan costs: an example

To give you a feel for the burden, here is an example with an assumed interest rate. Your actual rate may differ considerably.

**Example: €25,000 over 5 years, 1 repayment-free year, assumed 6 % a year**

- Year 1: interest only, per month: €125.00
- From year 2: principal per quarter (€25,000 / 16): €1,562.50
- First quarterly payment including interest: €1,937.50
- Interest in year 1: €1,500.00
- Interest in years 2 to 5 on the falling balance: €3,187.50
- **Total interest: €4,687.50**

Assumes equal quarterly principal repayments after the repayment-free year. The rate is chosen for illustration and is not a current KfW rate.

The quarterly payment of nearly €1,940 in year two is where many plans break. The repayment-free year feels comfortable, but it only postpones the load. Test the payment against realistic income from month 13, not optimistic income.

## When a loan makes sense, and when it does not

Loans speed up something that already works. It does not fix something that does not.

StartGeld makes sense for an investment that clearly pays for itself: a van for a tradesperson with a full order book, equipment for a practice, stock for a shop with a confirmed location. Or for working capital to bridge the gap between delivering and getting paid, when your clients pay after 60 days.

It is risky when you want to find out whether anyone will buy at all. Marketing budgets for unproven products, as in [dropshipping](https://ohne-startkapital.de/en/business-models/dropshipping-startup-costs/), should not be borrowed. Neither should months of living costs with no income in sight.

Check grants first, because they do not have to be repaid. People on unemployment benefit can apply for the [start-up grant, Gründungszuschuss](https://ohne-startkapital.de/en/funding/germany-start-up-grant/), and people on Grundsicherungsgeld for the [jobcenter's Einstiegsgeld](https://ohne-startkapital.de/en/funding/jobcenter-self-employment-grant/). Both can be combined with a loan.

If what you need is engineering rather than cash, equity partnerships are another route. Venture studios such as [OnlineBuilders](https://onlinebuilders.biz/ventures) review selected start-ups for partnerships where development is paid for in equity instead of invoices. No loan to repay, but you give up ownership.

## Microloans: the federal fund has closed

Until mid-2026 there was an alternative for small amounts: the federal Mikrokreditfonds Deutschland, which backed microloans of up to €25,000. According to a [Bundestag press notice](https://www.bundestag.de/presse/hib/kurzmeldungen-1194484), the government decided not to extend lending beyond 30 June 2026, citing growing audit and documentation requirements among other reasons.

For founders with small needs, the state development banks are now the first stop, for example IBB in Berlin, NRW.BANK or L-Bank in Baden-Württemberg. Their programmes vary widely, so call your state's funding advice line before you write a single application.

## Your next step

Draw up the 24-month cash flow plan before you book a bank appointment. Put the loan payment in from month 13 and check whether income still covers it if revenue comes in a third below plan. If it holds, book the meeting. If not, start smaller or [start on the side](https://ohne-startkapital.de/en/first-steps/side-business-while-employed/) while keeping your job. You will find more options for money and substitutes for money under [funding](https://ohne-startkapital.de/en/funding/).

## FAQ

### Can foreigners get a KfW startup loan?

The programme is about the business, not your passport: the company's seat and the investment must be in Germany. In practice the bank decides, and it will look at your residence status, your German credit history and whether your permit allows self-employment.

### Do I need equity or collateral?

KfW does not require equity, because it takes over 80 percent of the bank's credit risk. The bank can still ask for collateral or a personal contribution; that is agreed case by case.

### Can I combine the KfW loan with the Gründungszuschuss?

Yes. The Gründungszuschuss comes from the Federal Employment Agency, not KfW. What you cannot do is combine StartGeld with other KfW or ERP programmes for the same project.

### Where can I get a microloan now that the federal microloan fund has closed?

The federal Mikrokreditfonds stopped new lending after 30 June 2026. The development banks of the federal states are the next place to ask; their programmes differ a lot from state to state.

Photo: Karsten11, Public domain (https://commons.wikimedia.org/wiki/File:Westarkade.JPG)