European Entrepreneurial Region ILB Financial Instruments for SMEs



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Platz für Foto European Entrepreneurial Region ILB Financial Instruments for SMEs Tillmann Stenger, Potsdam, 31. May 2012

Agenda ILB: The Regional Development Bank of Brandenburg Key factors of ILB s success in regional SME development: proximity, financial instruments and consulting Local Utilisation of EU Structural Funds for SMEs Current and Future Revolving Financial Tools for SMEs Tillmann Stenger, Member of Managing Board of ILB Seite 2

Central Public Financing Institution operating on behalf of the State of Brandenburg to promote the regional economy in: Business, Technology & Media Infrastructure Development Agriculture Labour Market (as of 01.01.2014) Public Housing Legal form: Anstalt des öffentlichen Rechts (institution of public law) Shareholders: Brandenburg government 50%, NRW Bank 50% Guarantees: Tax exemption Anstaltslast (state guarantees) Gewährträgerhaftung (liability & state warranties) Wettbewerbsneutralität (anti-trust compliance) Tillmann Stenger, Member of Managing Board of ILB Seite 3

Public Agencies in Brandenburg ILB The Regional Development Bank of Brandenburg ZAB Brandenburg Economic Development Board LASA Landesagentur für Struktur und Arbeit Brandenburg GmbH state agency Close cooperation amongst the public agencies with the local business community by means of a large number of local offices to service SMEs close to their place of operations Central pooling of financing promotion at ILB Tillmann Stenger, Member of Managing Board of ILB Seite 4

Development of Total Loan Commitments at ILB 1.600 1.200 800 400 ILB Financing Services Rendered (Eigenprogramme) Public Financing Services Rendered (Geschäftsbesorgung) 0 2005 2006 2007 2008 2009 2010 2011 HR 2012 Angaben in Mio. EUR ILB s financing volume totals on the average more than 1.1 billion Euro annually. Resulting from ILB s provision of financial services, more than 40 billion Euro have been succesfully invested in the Brandenburg economy since 1991, creating a total of 137,000 new jobs. Tillmann Stenger, Member of Managing Board of ILB Seite 5

Level of Total Commitments of the Brandenburg-Kredit-Familie 2011 bis 2014 400 BK Microloans 300 BK Energy Efficient Building 200 100 0 2011 2012 2013 2014 BK Renewable Energy (Start 2012) BK SME BK Rural Areas BK Municipalities Amounts in million EUR ILB implements EU, Federal and State Funding Programmes on behalf of the government and additionally makes use of own financing instruments funded by ILB capital resources to further SME development in the region. Tillmann Stenger, Member of Managing Board of ILB Seite 6

Energie- und Klimaschutz-Paket (20-20-20-Ziel): Zielstellungen der EU bis 2020 Financial Services and Support for SME Development Investment (GRWG) R&D (FuE-Richtlinien) Micro-Loan Start-Ups (BK-Mikro) Internationalization (M4) Renewable energy efficiency programmes (RENplus) Global funding programmes for all levels of SME development from the start-up phase through to full operations. Tillmann Stenger, Member of Managing Board of ILB Seite 7

SME Financial Tools in Brandenburg Grants Loans Equity Guarantees Joint responsibility for the improvement of regional economic infrastructure (GRW) Research & Development Consulting Programmes to promote the efficient use of energy Renewable energy programmes Sustainable urban development projects (SME) Brandenburg-Kredit Mittelstand (SME Loans) Brandenburg-Kredit Mezzanine (SME) Brandenburg-Micro-Loan ILB-Kooperationsdarlehen Mittelstand (SME) ERDF GRW-G subordinated loans KfW Programmes Seed Capital Fund (Frühphasenfonds Brandenburg) Venture Capital Fund (Wachstumsfonds Brandenburg) Bürgschaftsbank Brandenburg Bund- / Länder- Bürgschaften (state and federal guarantees) Wide variety of financial tools for the promotion of SME development in the State of Brandenburg. Tillmann Stenger, Member of Managing Board of ILB Seite 8

Business Plan Contest Berlin-Brandenburg (BPC) Sponsors: Deutsche Gründer- und Unternehmertage (degut) (Entrepeneur s Fair) Hosts Objectives of the BPC Free consulting services for the promotion of start-ups - workshops, seminars, training - feedback, coaching, consulting - networking Trade Fair Entrepeneurship and Start-Ups > 120 exhibitors Free seminars and workshops Award of the KfW Entrepeneur Prize GründerChampions for the best annual start-up organisation Track record from 1996 to date 7,543 business plans 1,428 successful start-ups 6,381 jobs created Date and location 26. + 27. October 2012 Airport Tempelhof in Berlin These platforms complement our top-of-the-line service programmes for SMEs to provide incentives and networking opportunities amongst businesses in our region. Tillmann Stenger, Member of Managing Board of ILB Seite 9

Utilisation of EU Structural Funds for SMEs EFRE Subsidies and revolving financing tools from EFRE-funds (z.b. BFB-Funds und GRWG-Nachrangdarlehen) ESF Business Start-Up and Professional Development ELER Individual rural business development of farming and agriculture (EBI) ILB uses all EU Structural Fund programmes explicitly to promote SME development in Brandenburg. Tillmann Stenger, Member of Managing Board of ILB Seite 10

Current Revolving Financial Instruments for SMEs Revolving Financing Tools....... total amount EFRE BFB BeteiligungsFonds BFB Wachstumsfonds BFB Frühphasenfonds GRW-G-Nachrangdarlehen Brandenburg-Kredit Mezzanine 20.9 30 20 50 20 15.7 22.5 15 50 15 Total 140.9 118.2 141 million Euro are currently invested in various revolving financial instruments. Tillmann Stenger, Member of Managing Board of ILB Seite 11

Future Revolving Financial Instruments for SMEs for the funding period 2014-2020 Revolving Financing Tools....... total BFB BeteiligungsFonds III (investment) BFB Frühphasenfonds II (seed capital) BK Mezzanine II GRW-G-Darlehen (loans) GRW-I-Darlehen (loans) BK Innovation general BK Innovation compact FuE KMU-Innovationsdarlehen (SME loan) Start-Up Micro-Loan 50 20 30 100 25 50 20 20 5 Guarantee funds Total 320 300 million Euro are in discussion for further investment in revolving financial instrument programmes for the next funding period. Tillmann Stenger, Member of Managing Board of ILB Seite 12

Thank you for your attention! Tillmann Stenger Member of Managing Board Investitionsbank des Landes Brandenburg Steinstraße 104-106 Tel.: +49 331 660-1210 Fax: +49 331 660-1233 tillmann.stenger@ilb.de www.ilb.de Tillmann Stenger, Member of Managing Board of ILB Seite 13