BAFA funding for start-ups and existing companies

BAFA funding for start-ups and existing companies

In Germany, young and existing companies have the opportunity to apply for funding for consulting costs. The type of advice plays a subordinate role. In this way, consulting costs for economic, financial, personnel or corporate management issues can be subsidised. The entire funding program is designed so that the companies build up the necessary know-how with the help of experts and thus successfully assert themselves on the market. The funding program has been extended for two years since January 1st, 2021. This speaks for the successful feedback and the benefits for young and existing companies. In the current difficult situation of some companies, this program is also of interest. In addition to young and existing companies, companies that are in a difficult economic situation are also eligible to apply. The age of the company is irrelevant for such an application.

For whom:

• Start-ups (up to the second year after the year of foundation on the market)
• Existing companies (from the third year after founding)
• Companies that are in a difficult economic situation

For whom not:

• Entrepreneurs who belong to the liberal professions or work in an advisory capacity.
• Companies with opened insolvency proceedings
• Associations, foundations or non-profit companies
• Farming or fishing businesses

Funding rate:

company in trouble

Companies that are in an economically difficult situation and use management consultancy to reorganize their economic services can apply for funding for these services. An amount of up to €2,700 can be requested. The company's own contribution therefore corresponds to €300, which they have to pay for a consultation themselves. It is also important with this funding that the application is approved before an order is placed. A corporation is considered to be in financial difficulties when half of the subscribed share capital is reported as a loss. Companies in which such an imbalance due to sales slumps in the near future are considered "in need" and are therefore eligible to apply. This imbalance is determined during the year. The consulting company will check this imbalance! However, random checks can be carried out. The fact that the eligibility check is carried out in an unbureaucratic manner shows the intention that help will be provided quickly.

A consultation is intended exclusively for correcting the imbalance, but can include targeted weak point advice. However, this must be applied for again after primarily financial advice!

Be careful when choosing a consultant!

Consultants who carry out the business consulting required by BAFA funding must provide evidence of appropriate qualifications. The consultant must submit proof of quality to BAFA and will then be listed as an official consultant for a funded consultation. It is the case that the consultant and not just the company must provide this proof. As a company that is being advised, you will gain nothing if the consultant who is advising you cannot provide such proof of quality.

As a young entrepreneur, I would also like to qualify as a consultant! I will continue to write new posts for this. I show how a consultant qualifies and what demands you as a customer can make of the consultant.

young and existing companies

• Legal and insurance issues as well as advice from a tax advisor
• Mediation activities for goods that the consultant sells himself
• Content that violates applicable law or is ethically and morally unacceptable
• health services
• Projects that are already being subsidized by other funds.

In contrast to companies that are in an economically difficult situation, young and existing companies have the opportunity to choose the type of advice. The focus of a consultation can be economic, financial, personnel or general organizational. The consultation must be used within six months, and only individual consultations are funded. This means that workshops or other group events are not eligible. Again, you should be careful when choosing a consultant. If the advisor is not familiar with the topic of BAFA funding, he or she may not be the right advisor for you if you are dependent on support from state subsidies. The days of counseling do not have to be consecutive. The consultation must therefore only take place within the eligible six months. Existing companies may use a maximum of five consulting days for one type of consulting.

The following conditions exclude BAFA funding:

• Legal and insurance issues as well as advice from a tax advisor
• Mediation activities for goods that the consultant sells himself
• Content that violates applicable law or is ethically and morally unacceptable
• health services
• Projects that are already being subsidized by other funds.

IngTechAS

If you would like to know more about the topic "Promotion of young and existing companies", please feel free to contact me. Companies in difficulty can also contact me at any time. I will support you where I can!

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