KfW loans for business succession: how successors finance the takeover

A successor taking over a company in Germany can finance the purchase price with three KfW programmes at subsidised rates: the ERP-Gründerkredit StartGeld (067) up to 200,000 euros, the ERP-Förderkredit Gründung und Nachfolge (077) up to 500,000 euros per applicant, and the ERP-Förderkredit KMU (365/366) up to 25 million euros per project. Applications go through a bank or savings bank of your choice, and before the project begins; clarify with the bank before signing the purchase agreement whether signing already counts as the start. Figures as per KfW documents dated 10 December 2025 (077, 365), 1 February 2026 (067) and 1 September 2026 (366), retrieved on 15 October 2026.

This article is written for buyers who want to acquire an existing business, and for owners who want to understand how their buyer is supposed to raise the price. The funding logic is the same whether you are buying a company or handing one over. This is guidance, not financing or legal advice.

Which KfW programmes fund the takeover of a company?

Three programmes can fund the takeover of a company: 077 and 365/366 explicitly list takeover and active shareholding as eligible, and StartGeld (067) funds takeovers as part of start-up and succession. They differ mainly in maximum amount, liability release for the bank and who may apply.

Programme	Maximum amount	Share of costs	Term and repayment-free years	Relief for the bank	Source (status)
ERP-Gründerkredit StartGeld (067)	200,000 euros, of which up to 80,000 euros for working capital	up to 100 % of costs; companies up to 5 years on the market	5 or up to 10 years, 1 to 2 repayment-free years	80 % liability release	KfW product information 067 (1 February 2026)
ERP-Förderkredit Gründung und Nachfolge (077)	500,000 euros per applicant	up to 35 % of eligible costs	15 years with 5 or 10 years with 2 repayment-free years	100 % guarantee by a guarantee bank	KfW fact sheet 077 (10 December 2025)
ERP-Förderkredit KMU (365, 366)	25 million euros per project for takeover and shareholding	up to 100 % of costs	up to 5, 10 or 20 years with at most 1, 2 or 3 repayment-free years	365: none; 366: 50 % liability release	KfW fact sheets 365 (10 December 2025) and 366 (1 September 2026)

Programmes 077, 365 and 366 require the applicant to be professionally and commercially qualified, to be registered in the commercial register where required and to work actively in the management of the company; the mere acquisition of shares as a financial investment is excluded there. StartGeld (067) requires professional and commercial qualifications and is aimed at companies that have been on the market for at most five years.

Interest rates are subsidised from the ERP special fund. Particularly favourable conditions apply to projects in regional assisted areas and to companies that have been on the market for less than five years. The actual rate is set by the bank based on creditworthiness and collateral within the price classes prescribed by KfW; the maximum rates are published in KfW's conditions overview.

How does the application work?

The application is submitted to a financing partner of your choice, i.e. a bank or savings bank, before the project begins. KfW does not lend directly to successors. The fact sheets do not define which step counts as the start. Clarify this with the bank before you sign.

The bank assesses your project. Only then does it forward the application to KfW. For the ERP-Förderkredit Gründung und Nachfolge (077) there is one more step: the guarantee application goes via the bank to the competent guarantee bank. Only after its positive risk assessment does the bank submit the refinancing application to KfW.

This has a practical consequence. Your financing concept must be in place before you negotiate exclusively with the seller. The KfW product information for StartGeld names a business plan, a CV and a personal financial statement; the bank may ask for further documents depending on the case, such as the target company's annual accounts. Preparing these in parallel with due diligence usually saves time at the end.

For applications under the ERP-Förderkredit KMU with liability release (366), KfW offers an accelerated procedure: if KfW's own exposure to the applicant or the group of connected clients, including the requested loan, is at most 750,000 euros and the bank confirms the fast-track criteria, KfW usually assesses within five banking days. The overall credit assessment can take longer, because KfW is only one of several steps.

Which programme suits which successor?

That depends on the size of the project and on your track record as an entrepreneur. The fact sheets draw clear lines.

The ERP-Gründerkredit StartGeld (067) is intended for small takeovers. Up to 200,000 euros, no equity required, 80 % liability release for the bank. It covers start-ups, consolidation and takeovers in a succession; KfW states a company age of 0 to 5 years. How this is applied to the takeover of an older business is something to clarify with the bank.

The ERP-Förderkredit Gründung und Nachfolge (077) is the programme for the classic external successor. Natural persons who have been in business for less than five years may apply. The loan covers up to 35 % of eligible costs, at most 500,000 euros per applicant. If several people take over together, each may apply according to their share. The bank carries no risk because a guarantee bank guarantees 100 %; you are personally liable, and the fact sheet requires no further collateral. In return you pay guarantee fees of 0.98 % (federal government) and 1.01 % (guarantee bank) per year, included in the effective interest rate.

The ERP-Förderkredit KMU (365, 366) is for larger takeovers and for experienced entrepreneurs. Up to 25 million euros per project, up to 100 % of costs. The variant with 50 % liability release (366), however, requires a company history with annual accounts for two complete financial years. If a natural person applies, they must have been responsible for the last two annual accounts as managing shareholder, or have worked in a responsible position in the target company for at least three years and take over from within. A first-time entrepreneur from outside does not usually qualify; clarify this with the bank. For them, the variant without liability release (365) or programme 077 remains.

What does a typical financing structure look like?

A KfW loan replaces neither equity nor the bank; it is one building block among several. The following example is our own illustrative calculation, not a commitment and not a benchmark.

Assume a purchase price of 1.5 million euros plus 100,000 euros for advisers, notary and start-up costs. Total requirement: 1.6 million euros.

Building block	Amount	Note
Buyer's own funds	250,000 euros	around 16 % of the requirement; banks expect a visible own contribution
ERP-Förderkredit Gründung und Nachfolge (077)	500,000 euros	35 % of 1.6 million would be 560,000 euros; the cap is 500,000 euros
Vendor loan	200,000 euros	subordinated; shows the bank the seller's confidence in the business
Bank loan, e.g. ERP-Förderkredit KMU (365)	650,000 euros	customary collateral; a guarantee bank can cover part of the default risk
Total	1,600,000 euros

Two things stand out. First, the debt share is high, so every bank looks at debt service capacity from the business's current earnings. Second, the seller shares part of the risk through the loan. How a vendor loan is structured fairly is covered elsewhere; the role of net debt in the purchase price is explained in our article on net debt.

The guarantee banks of the federal states can secure bank loans with default guarantees; according to the Förderdatenbank (status January 2024) up to 2 million euros and at most 80 % of the default risk. A fee is charged for the guarantee.

What is excluded from funding?

The fact sheets exclude transfers between related parties and pure financial investments. Not funded are:

1. Debt rescheduling and subsequent financing of projects already started or completed.
2. Transfers for consideration between affiliated companies, between a company and its shareholders, in the context of business splits (Betriebsaufspaltung) and between spouses or registered partners.
3. The acquisition of own shares, trust arrangements and silent partnerships.
4. The mere acquisition of shares as a financial investment without active involvement in the company.
5. Projects on the KfW exclusion list and companies that fall under a state-aid exclusion, such as companies in difficulty.

A paid handover within the family is therefore not automatically excluded, but a transfer between spouses is. Anyone buying their parents' business should clarify the constellation with the bank before applying.

State aid law also applies: the interest subsidy can be de minimis aid (as under programme 077; under the ERP-Förderkredit KMU other routes are possible depending on the case). The total of all de minimis aid to one company may not exceed 300,000 euros in three years, and since 1 January 2026 every such grant is published in a central register of the European Commission. There is no legal entitlement to funding; KfW decides within the available funds.

What does this mean for the seller?

Whether the buyer can finance the deal decides whether the sale happens, not the price alone. In the example above, the buyer only carries the 1.6 million euro requirement because the seller defers 200,000 euros. Without that building block they would need more equity, additional debt or an investor.

Three things follow for owners. Clean annual accounts for the last three years are the most important document in the buyer's loan application, more important than any presentation. A business whose earnings cover the debt service on the purchase price financing is saleable; one whose earnings depend on the owner is not. And an owner willing to defer part of the price as a vendor loan considerably widens the circle of possible buyers.

Preparation starts long before the sale; our page on business succession in Germany covers routes, deadlines and points of contact. Advice on the seller's side can also be subsidised in some cases; conditions and application rules are listed under consulting grants for business handovers (German). Owners without a successor can list anonymously on our succession exchange Germany (German).

Frequently asked questions

Does KfW also fund the purchase price itself?

Yes. In programmes 077 and 365/366, "takeover and shareholding" is a separate eligible cost category alongside investments, working capital and inventory; StartGeld (067) funds takeovers as part of start-up and succession. Transfers between related parties and pure financial investments are excluded.

Do I need equity?

For the StartGeld (067), according to KfW, no. Under programme 077 the loan covers at most 35 % of costs; the rest must come from own funds, the bank or a vendor loan. Under the ERP-Förderkredit KMU up to 100 % can be financed, but the bank will expect an own contribution.

Can I combine several programmes?

In principle yes. The fact sheets for 077, 365 and 366 allow combination with other funding within the state aid ceilings. Under programme 077 the cumulative outstanding loan amount from 077 and ERP-Kapital für Gründung (058) may not exceed 500,000 euros per applicant.

What if I have already signed the purchase agreement?

Then the project may count as started, and subsequent financing of projects already started is excluded in programmes 077, 365 and 366. Apply to the bank before you sign and have the timing confirmed.

Does this also apply in Austria?

Generally no. Programmes 067 and 077 apply to projects in Germany; the ERP-Förderkredit KMU can, under conditions, also finance projects abroad by German companies. For a takeover in Austria without a German link the programmes are not intended. On financing routes for a company purchase, see our article on financing a company purchase.

How long does approval take?

That depends on the bank. KfW itself assesses within usually five banking days under the fast-track procedure of programme 366, provided its own exposure to the applicant or the group of connected clients, including the requested loan, is at most 750,000 euros. Under programme 077 the guarantee bank's risk assessment is added. In our experience several weeks pass from complete documents to approval.

Sources: KfW, fact sheet loan no. 077 ERP-Förderkredit Gründung und Nachfolge (status 10 December 2025); KfW, fact sheet loan no. 365 ERP-Förderkredit KMU (status 10 December 2025); KfW, fact sheet loan no. 366 ERP-Förderkredit KMU mit Haftungsfreistellung (status 1 September 2026); KfW, product information 067 ERP-Gründerkredit StartGeld (status 1 February 2026); Förderdatenbank des Bundes, counter-guarantees of the federal states and the federal government for guarantee banks (status January 2024). All retrieved on 15 October 2026. Conditions change; the current fact sheet and the bank's decision are decisive. The example calculation is our own illustration. Guidance, not financing, legal or tax advice.

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