Can a company from abroad use state funding?

State programmes generally fund projects carried out in that state, typically through a registered office or permanent establishment there. Setting up a German entity or branch is often a precondition. The guideline of each programme defines who is eligible.

Can I combine state and federal funding?

Generally yes, as long as the same costs are not funded twice and state aid ceilings are respected. Some state programmes explicitly require you to use federal or EU programmes first.

Are all state programmes run by the promotional bank?

No. Many are, but some are managed directly by state ministries or by appointed project management agencies. The federal funding database names the responsible body for each programme.

German State Funding: Promotional Banks of All 16 States

Besides federal and EU funding, all 16 German federal states (Länder) run their own business support programmes, usually through a state-owned promotional bank (Förderinstitut or Förderbank). As a rule, the state where your project takes place is responsible. The table below lists the promotional bank for each state; to find specific programmes, the federal funding database (Förderdatenbank) with its filter by state is the fastest route.

What state funding offers

State programmes fill gaps left by federal schemes and set their own priorities, for example innovation, start-ups, digitalisation, energy or regional development. Typical instruments are:

Grants (Zuschüsse) for research and innovation projects, consulting or investment.
Loans (Darlehen), often via your house bank and often complementing KfW programmes.
Guarantees (Bürgschaften) when collateral for a bank loan is missing.
Equity (Beteiligungen) through state investment companies for start-ups and growing firms.

Many programmes are co-financed by the European Regional Development Fund (ERDF, in German EFRE), which affects timelines, reporting and publicity rules.

Promotional banks of the 16 states

State	Promotional bank	Website
Baden-Württemberg	L-Bank	l-bank.de
Bavaria	LfA Förderbank Bayern	lfa.de
Berlin	Investitionsbank Berlin (IBB)	ibb.de
Brandenburg	Investitionsbank des Landes Brandenburg (ILB)	ilb.de
Bremen	Bremer Aufbau-Bank (BAB)	bab-bremen.de
Hamburg	Hamburgische Investitions- und Förderbank (IFB Hamburg)	ifbhh.de
Hesse	Wirtschafts- und Infrastrukturbank Hessen (WIBank)	wibank.de
Mecklenburg-Western Pomerania	Landesförderinstitut Mecklenburg-Vorpommern (LFI M-V)	lfi-mv.de
Lower Saxony	Investitions- und Förderbank Niedersachsen (NBank)	nbank.de
North Rhine-Westphalia	NRW.BANK	nrwbank.de
Rhineland-Palatinate	Investitions- und Strukturbank Rheinland-Pfalz (ISB)	isb.rlp.de
Saarland	Saarländische Investitionskreditbank (SIKB)	sikb.de
Saxony	Sächsische Aufbaubank (SAB)	sab.sachsen.de
Saxony-Anhalt	Investitionsbank Sachsen-Anhalt	ib-sachsen-anhalt.de
Schleswig-Holstein	Investitionsbank Schleswig-Holstein (IB.SH)	ib-sh.de
Thuringia	Thüringer Aufbaubank (TAB)	aufbaubank.de

Not every state programme is run by the promotional bank. Some are handled by state ministries or appointed project management agencies (Projektträger). Programme pages and guidelines are often available in German only.

Three documented innovation programmes

Several states run their own research and innovation programmes. Three examples documented on the official pages of the promotional banks or the state:

Pro FIT (Berlin, IBB): project financing for research, innovation and technology from Investitionsbank Berlin.
ProFIT Brandenburg (Brandenburg, ILB): support for research, innovation and technology based on the guideline of 6 April 2023, co-financed by the ERDF, with ILB as the approving body. The guideline asks applicants to use federal and EU programmes first where they apply.
PROFI (Hamburg, IFB Hamburg): the Hamburg innovation programme with several strands, including PROFI Standard and PROFI Transfer for R&D projects and PROFI Umwelt for environmental innovation.

Funding rates and maximum amounts are deliberately not listed here, because they vary by strand, company size and type of cooperation and can change with new calls. The current programme pages and guidelines are binding.

During the temporary application freeze in the federal ZIM programme, state programmes are an important alternative for many SMEs, alongside the nationwide research allowance.

How to find the right programme

Use the funding database. On foerderdatenbank.de you can filter by region (your state), type of funding and topic. Federal and EU programmes are listed too.
Contact the promotional bank. The banks advise on their own programmes, often by phone or at consultation days.
Involve your house bank. Loans and guarantees are often applied for through a commercial bank, as with KfW loans. See loans vs. grants.
Check state aid rules. Many state grants are de minimis aid; keep a record of previous aid, as you will need to declare it. See our guide to de minimis aid.
Apply before you start. For grants, the project usually may only begin after the application or approval. Signing a binding supply contract too early can rule out funding.

Points to watch

Location: state funding usually requires the project, and often the jobs or investment, to stay in that state.
Priority of other programmes: some guidelines require federal or EU options to be checked first.
Combination: state and federal funds can be combined if no costs are funded twice.
Deadlines: some programmes are open all year, others use cut-off dates or thematic calls.

Sources

Federal funding database (Förderdatenbank)
Investitionsbank Berlin: Pro FIT
State of Brandenburg: ProFIT Brandenburg guideline 2023
IFB Hamburg: PROFI Standard and PROFI Transfer
Websites of the promotional banks: see table

This guide does not replace tax or legal advice; the funding guideline and the funding body’s decision are binding.

Funding from Germany's federal states: which promotional bank covers your region