Public Guarantees Mecklenburg-Vorpommern

The German federal state of Mecklenburg-Vorpommern aims at the further development of its economy and the creation of sustainable competitive structures. On behalf of commercial companies the federal state supports the acquisition of bank financing by endorsing public guarantees. PwC supports the state as a mandatary for the management of this funding program.

Public guarantees enable or help facilitating the funding of companies. The numbers illustrate the relevance of this funding program for the economy of Mecklenburg-Vorpommern: In more than 20 years loans of more than € 2.2 billion were guaranteed and over 325 projects / measures were accompanied.

Cornerstones of a public guarantee

• 80% deficiency guarantee; the mirroring 20% deductible is at lender’s risk
• Credit volume amounts to a maximum of € 12.5 million, given an 80% guarantee
• No limit regarding the forms of financing (e.g. cash-/ guarantee facilities, leasing)
• Duration: working capital loans max. 8 years, investment loans max. 15 years (real estate max. 20 years)
• Basically available for commercial companies in all industries and sectors
• Finance solutions for:

Benefits for lenders

• The public guarantees are a first class collateral, fully recognised as risk reducing to the bank’s equity according to Basel III / German Solvency Regulation
• Next, also in temporary crisis situations public guarantees are a strong security, since the federal state of Mecklenburg-Vorpommern remains a reliable partner
• Mecklenburg-Vorpommern takes up to 80% of the default risk by granting the deficiency guarantee. Additionally, contractual interest and default interest after credit termination are additionally secured up to a maximum of 10%
• During the term handling is lean

Benefits for companies

• Public guarantees secure a stable funding
• Combination with other promotion programs is possible
• Confidentiality is guaranteed

Five steps towards a Public Guarantee

For further information, like application, information requests or fees please see the information leaflet and feel free to contact us