Digitization in the middle class: How to secure funding and support

Digitization is no longer a trend for small and medium-sized enterprises (SMEs), but a need to remain competitive.

But the implementation of digital projects requires investment.

Fortunately, there is a broad funding landscape in Germany, which supports the middle class in digitalization financially.

In this post, you will learn what options exist and how to find the right funding for your company.

Why digitization is so important for the middle class

Digitalization in the middle class is a key factor in long-term success.

It allows companies to optimize their processes, unlock new business models and better reach their customers.

From the automation of routine tasks to the introduction of e-commerce solutions to the use of cloud technologies – the potentials are diverse.

But for SMEs, the cost of implementing new technologies is often a hurdle.

This is where the numerous funding programmes of the federal and state governments are set up.

What types of funding are there?

In principle, two main types of funding can be distinguished:

• ** Grants:** These are non-refundable financial contributions. The funding rate varies depending on the programme and is often between 30% and 80% of the eligible costs. A share of its own is usually always required.
• Credite: Funding loans are offered at particularly favourable interest rates and with long durations. Often, eradication grants or liability exemptions are included, which additionally facilitates financing.

Federal-wide funding programmes for digitization in the middle class

At federal level, there are a number of programmes that support SMEs in digitisation. Here are some of the most important:

Promoting business consulting for SMEs (BAFA)

This programme of the Federal Office for Economic Affairs and Export Control (BAFA) grants advisory services on all aspects of corporate governance, including digitalisation. The amount of funding depends on the location of the company and can be up to 2,800 euros.

Go-inno (BMWK)

The "go-inno" programme of the Federal Ministry for Economic Affairs and Climate Protection (BMWK) supports SMEs in preparing and implementing product and technical process innovations. Digitization projects can also be promoted here. The grant may amount to up to EUR 20,000.

ERP Digitalization and Innovation Credit (KfW)

The loan facility for reconstruction (KfW) offers a low interest loan for digitization and innovation projects with the ERP-digitalisation and innovation loan. Companies can apply for up to EUR 25 million.

Funding programmes of the federal states

In addition to the nationwide Pro