Foreign investors are generally subject to the same eligibility conditions as German investors for
Investment grants: Cash incentives in the form of non-repayable grants, usually based on
investment costs or assumed wage costs. Incentives vary according to the level of economic
development of the region, with up to 30% of eligible expenditures channeled to large
enterprises, 40% to medium-sized enterprises, and 50% to small enterprises. An extension of this
grant program for the timeframe July 2014-2020 is currently in preparation.
Credit Programs: Loans at below-market interest rates from the KfW banking group and state
development banks, partially targeting small and medium-sized enterprises (SMEs).
Public guarantees: Loan guarantees of up to 80% of the loan amount from state governments or
in the case of Eastern Germany from state and federal government for companies that do not
have the collateral that private-sector banks ordinarily require.
Labor-related incentives: Support from over 800 local job centers of the Federal Employment
Agency for programs that focus on recruitment support, pre-employment training up to 100% for
up to three months, wage subsidies for unemployed candidates for up to 12 months, and on-the-
job training up to 50%.