“The NRW.BANK.Konjunkturkredit makes development loans available especially to those companies that have got into trouble since July 2008 as a result of the economic crisis,” explains Dietmar P. Binkowska, Chairman of the Managing Board of NRW.BANK.

In the context of the programme, small and medium-sized companies generating sales of up to EUR 500 million can receive loans of between EUR 125,000 and EUR 5 million. These loans may be used to finance their investment projects or to cover their cash or working capital requirements. “These are currently the main problems facing NRW’s mid-market,” says Dietmar P. Binkowska. The financing portion may amount to up to 100 percent of the eligible expenses. The loans have tenors of between four and ten years.

The interest rate is fixed by the borrower’s relationship bank taking their financial situation and the collateral furnished into account. The relationship bank takes the pricing classes defined by NRW.BANK as a yardstick. NRW.BANK uses its own income to reduce the interest rates.

The relationship bank may additionally apply for a 50 percent liability release for companies that have operated successfully for a minimum of two years.