The LfA is one of the largest development banks in Germany. What makes it so special?
Florian Albert: It starts with the history of the LfA . The start of business in 1951 was marked by the reconstruction of Bavaria and the integration of nearly two million displaced persons into the Bavarian economy. Since that time, LfA has been able to support Bavaria's structural transformation from an agricultural state to a high-tech location with its broad range of support for small and medium-sized businesses and municipalities. Our main business objective is not to maximize profits, but to help create and secure jobs. To this end, we support start-ups, small and medium-sized enterprises and freelancers with bank funds according to the so-called "house bank principle". This means that the development loans are applied for and paid out via the entrepreneur's principal bank, i.e. the savings banks, cooperative banks and private banks. This has the advantage that the entrepreneur retains his contact person from the application to the final disbursement. In general, our development loans are characterized by very favorable interest rates, flexible loan terms and grace periods. Thus we ensure planning security and preserve the liquidity of the enterprises in the initial period.
With which needs the enterprises turn to you?
Florian Albert: That is quite different. The LfA promotes applicants in all phases of business: From the founder to growing companies to business transfers. On the one hand, our promotional loans create the necessary liquidity for investment projects or working capital requirements. On the other hand, companies often do not provide sufficient collateral for a loan commitment from their principal bank. This is where we can step in and relieve the company's principal bank of a large part of the credit risk. In this way, we open up access to credit for entrepreneurs. In addition to debt capital, we also provide equity capital through our subsidiaries. Bayern Kapital finances young and innovative technology companies from the seed phase to the growth phase with venture capital. Together with the Bayerische Beteiligungsgesellschaft BayBG, we help start-ups in trade, crafts, industry or the service sector.
Which projects can you support specifically?
Florian Albert: The basic prerequisite is a positive Bayerneffekt. A Bavarian effect is given, for example, if a project, whether within or outside Bavaria, a long-term assurance of competitiveness and a permanent preservation of the Bavarian location and jobs is achieved. So companies that want to expand their sphere of activity or acquire foreign orders will also find suitable funding offers from LfA for this.
In 2018, LfA Förderbank Bayern granted a record loan amount. What is the reason for this boom?
Florian Albert: The strong demand for financing is based on the one hand on the high willingness of companies to invest in a good economy. On the other hand, LfA has again increased the attractiveness of its funding offer in recent years. There was particularly strong demand for our optimized support for start-ups and business successors, which also benefits business transfers, which we treat with the same support benefits as a start-up. In addition, LfA introduced a new promotional loan with a repayment subsidy for energy efficiency measures. LfA's energy loans now support investments in production plants and processes as well as energy efficiency measures in company buildings. In addition, we have implemented procedural simplifications that make the funding even easier and faster.
The headquarters of LfA is in Munich. But the LfA also maintains a representative office in Nuremberg and a funding base in Hof. Why?
Florian Albert: Financial advice is - with all digitalization - a matter of trust. With our three locations and consulting days at 24 locations, we ensure the personal and regional consulting presence of the LfA throughout Bavaria. In this way, we offer entrepreneurs a free, objective and competent point of contact to find out about the funding options for their project before talking to their bank.
Cue Artificial Intelligence: what will SMEs have to prepare for in the coming years?
Florian Albert: SMEs are traditionally good at observing new developments and pragmatically seizing opportunities. So when it comes to artificial intelligence, they are once again challenged to examine whether they can save costs or increase their productivity and sales by using cutting-edge technologies and intelligent IT.
However, implementation costs are often a major hurdle. How does the LfA help with this?
Florian Albert: The introduction of innovations is often complex and cost-intensive. LfA tries to help companies by making the financing of innovations and digitization measures easier and more attractive. In this business area, for example, we have very recently replaced the three previous funding products with a streamlined and very attractive funding product. With the new "Innovation Loan 4.0," companies benefit not only from low interest rates but also from a repayment subsidy of one percent of the loan amount and an optional 70 percent release from liability. With these funding advantages in hand, the Bavarian economy is well equipped for the challenges of the future.
Thank you very much for the interview!
See the complete interview here in video:
