The digitization of the Economy is in full swing and the state has a number of funding opportunities for various Business-Models created. An overview.

State process funding for digital companies: Tips for your business transformation

Digital transformation - what does that actually mean?

Before I look at some funding opportunities here, allow me to take stock of the digital transformation. At the beginning there is the question: Who can imagine the first mention of the term “digital Transformation' pin to the lapel?

That is probably in the dark of contemporary history. Nowadays this word creation is on everyone's lips, especially in those of management consultants. In short, it is about the profound changes that have been triggered by the development of digital technologies. We are in the middle of the economic hurricane that economists succinctly describe as Industry 4.0.

Corona crisis as a catalyst for digital development

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A catalyst for this development began quite innocently at a fish market in Wuhan. A few weeks later, the blinds were pulled down around the world. People stayed at home, schools were closed, the consumption of current news about the virus took on proportions that, at least in eastern Germany, were reminiscent of the reunification times.

What seemed impossible before became reality: comprehensive home office, home schooling in the children's room, business meetings took place in slippers in front of the home PC, Shops stayed closed. After this lock down, life returned to normal within a limited framework. And the Society remarked with surprise:

De Minimis Regulation - what does it mean for public funding?

The funding programs often refer to the de minimis regulation. Initiates become sympathetic to that Head nod, but for most this one is Term not transparent. Therefore, a brief explanation of this foreign word.

De Minimis means “things of lesser” in Latin Significance“. That means: Companys can be funded up to a certain amount without an examination by the European Commission for distortion of competition. A German company can therefore receive funding of up to 200.000 euros from the state without a separate check for interventions in the market. This maximum amount is granted within a maximum of three tax years. If funding programs are now applied for, entrepreneurs have to declare that this limit of 200.000 euros has not been reached within the last three years.

Overview of digital funding programs

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But what exactly are the funding programs and how do they differ? A few years ago, a funding program called “Go digital” came out on the subject.

Another comprehensive funding measure is in the starting blocks, which differs only marginally from the first funding: "Digital now" . This Measures we would like to introduce you to here and therefore dive into the German funding jungle.

Go digital

The recipients of these grants are companies with fewer than 100 Employees and less than 20 million euros Turnover or total assets. The companies must be based in Germany and come from the commercial sector.

Craft businesses with technological potential are also eligible. In the case of partner companies or affiliated companies, the criteria for within this association must not be exceeded.

What is promoted?

Only authorized consulting companies are allowed to provide advice. The corresponding companies are listed on the website of the Federal Ministry of Economics. There are three eligible modules:

A consultant daily rate of up to 1.100 euros is funded (without Value added tax). The funding rate is 50 percent. The consulting company receives a statement of its own contribution and the payment of the complete sales tax for the consulting service.

How is funding supported?

A main module with at least 51 percent of the requested funding volume must be selected: Since this funding program relies on the IT-Security is very important, at least two consulting days should be allowed for this (regardless of the choice of module and preference). Up to 20 consultant days are eligible for funding in the main module, and up to 10 consultant days in one or both secondary modules

The application for funding is submitted by the consulting company and the consulting service only begins after receipt of the funding notification Implementation. For the Projects a maximum term of 6 months is required.

Digital now

This program can be applied for from 07 September 2020 and - in contrast to the “Go digital” program - members of the liberal professions (e.g. doctors, tax consultants, architects) and other self-employed entrepreneurs can also benefit from this support. The promoted company size was also expanded to a maximum of 499 employees.

What is promoted?

It should be noted that only investments in innovative hardware and software that create future added value are funded. Investments in standard software and hardware are not funded. The program consists of two funding modules:

A "digitization plan" is required for the application. This must make the following key statements:

What's also smart is that the "Go digital" and "digital now" programs can be combined. So in the first step the Planning of Investment funded and, in a second step, the investment based on it.

How is funding supported?

Here, too, it is a condition that implementation must not begin before the funding has been approved and that a listed consulting company is a project partner. A big improvement compared to the “Go digital” program is the duration of the project: the project can be carried out over twelve months (instead of six months).

The maximum subsidy is 50.000 euros, the minimum subsidy for investments is 17.000 euros and for qualification measures 3.000 euros Company staggered:

Attention: For funding applications submitted after June 30.06.2021th, 40, the funding rates are reduced to 35/30/5 percent. If investments are made in IT security, the funding rate increases by 10 percent. If the company is located in a structurally weak region, there is an additional XNUMX percent subsidy as a bonus.

Special feature of the value chain / network

If the interested entrepreneur takes a closer look at the funding, he will inevitably stumble across the above terms. These associations enjoy a special status. Companies in a value chain are companies that work together from the supply of raw materials to the end product.

A value-added network is characterized by the fact that the companies make independent contributions to an end product (e.g. suppliers in automobile production). And what is that good for? Are you part of a chain or a company? Network, the funding amount increases to a maximum of 100.000 euros.

Increase in the funding rate

The funding rate is also increased by 5 percent. Small downside here. Each company in this chain/network must submit a separate application with a digitization plan. The application with increased quotas is only considered completed when all companies involved have submitted their applications successfully have asked. A collective application is not possible.

By the way, the necessary personal contribution can be financed across other programs. For example, kfw offers various low-interest loans that support the expansion of digital infrastructure or the growth promote in the company.


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