What are European Recovery Program loans?
The term ERP credits comes from the former European Recovery Program, a reconstruction program for Europe, from which special assets are created today. The legal basis is regulated in the Law on the Administration of the ERP Special Fund of 31 August 1953. Lending of this asset is currently handled by bank, which is known for various types of funding. In fact, ERP credits are being distributed from these assets to promote different projects, always with renewal, modernization or reconstruction . Above all, founders and medium-sized companies profit from the granting of loans and from advisory subsidies. As a result, ERP loans are used for environmental and energy efficiency projects, ie for companies that pursue such a goal. Energy-efficient and sustainable projects can thus contribute to a more environmentally conscious life.
Advantages of ERP loans
ERP loans are generally not only spent for a good cause, they are also absolutely beneficial for the borrower. These receive a comparatively favorable interest rate and also founders or self-employed have the chance to get money. It is particularly worth mentioning here that many young companies, and especially self-employed people, are rejected by banks for lending. No equity is needed for an ERP loan, so 100 percent financing is available for investment or working capital. As a founder, you can therefore benefit from the ERP start-up loans and take advantage of the so-called “start money”.
Further possible uses of the ERP Special Fund
Among other things, the ERP Special Fund is invested in the promotion of the economy or participates in German development aid. Again and again you hear about the fact that the special assets should be dissolved in order to flow into the state budget. However, this has not happened to this day. Here, the ministry of economic affairs and energy takes over the administration. In the end, they receive applications for funding from bank.