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Bavarian SMEs: € 1.7 billion for upswing

27.01.2011



 Minister of Economics Martin Zeil: „2010 sets new development loan record“

The LfA Förderbank Bayern (Bavarian public funding bank) granted € 1.7 billion in low-interest credits to more than 6400 small and medium-sized enterprises (SMEs) in 2010. This core business of the LfA thus grew by 57%, to the peak of the past 10 years. Especially in demand have been funding for sustainable investments like business establishment or modernizations. The Bavarian Minister of Economics Martin Zeil explains: "90% of all development loans fund sustainable investments, such as creation, expansion or modernization of businesses, as well as environmental protection measures. We are very pleased that the boost in investments took place in all sectors, from craftmen's establishments to industry and services, through liberal professions. The backbone of the development loans is the State’s program for SMEs, which financed more than € 1 billion of investment loans.” 

LfA General Manager Michael Schneider adds: "The loans based on the program of development loans for SMEs have reached an absolute record high. Figures show that our offer of development loans meets the SMEs' current needs in funding. Moreover, the high amount of credits provided is an indication of the saving banks', credit unions' and corporate banks' increased willingness to use our offers to the advantage of their business clients." The companies usually apply for and are handed over the LfA development loans through their usual bank.

 

Source: Bavarian Ministry of Economy, Infrastructure, Transportation and Technology (in German)