Microloans for start-ups: Support for sustainable self-employment in Saxony

Microloans for start-ups: Support for sustainable self-employment in Saxony

According to a report by www.sueddeutsche.de, start-ups in Saxony can now apply for a low-interest microloan of up to 30,000 euros for their projects. The loan has a maximum term of six years, of which one year is grace-free. The aim of the loan is to support the establishment of a sustainable self-employed or freelance existence and to consolidate existing young companies or freelance existences. The microloans are financed at 80 percent of the eligible costs for investments and operating resources and are part of the “Loans for SMEs” program, which was presented in autumn 2023. Economics Minister Martin Dulig emphasized that medium-sized businesses are the heart of the Saxon economy and that the loan program is intended to help companies successfully implement, secure jobs and support the transformation process in structurally weak regions.

The new microloan program in Saxony could have a positive impact on the regional market and the financial sector. New jobs could be created by financing investments and operating resources for start-ups and young companies. This could stimulate the economy in structurally weak regions and support the transformation process. In addition, low-interest microloans could promote the creation of new companies and the consolidation of existing companies, which could stimulate economic growth in Saxony in the long term.

The introduction of the “Loan for SMEs” program and especially the microloan in Saxony could also have an impact on similar funding programs in other federal states. Other regions could follow Saxony's example and introduce similar loan programs to support their small and medium-sized businesses and start-ups. This could lead to a trend in the financial sector where more low-interest loans are offered to companies and start-ups in order to stimulate economic growth.