Grants for digital transformation in Germany

codafish team timo mueller andreas wroblewski general manager partner

Financing the Digital Future

The digitalization of companies and ordinary customer touchpoints, from booking online services to the online processing of complex business transactions, has occurred nearly everywhere. Many companies have thought about it and perhaps already considered a management consultancy on the topic of digitalization. Perhaps you are now asking yourself the question: Can I afford digitalization at all?

Since Germany lags at the bottom of the global rankings with regard to digitalization, the Federal Government has set up various grant-funding programs with the aim of promoting digitalization in as many areas of society as possible. In this blog post, we present various financing options for innovative digitalization projects for SMEs and what requirements you should pay attention to in order to receive a state subsidy for the digitalization of your company. With digitalization, you not only simplify internal processes, but you also offer your customers a great digital experience when purchasing your services or goods.

Together we dive into digital

Would you like to digitize your processes? Talk to us! Our experts will competently inform you about financing opportunities for your project: 00800 2632 3474 Fundings (in German)

Together we dive into digital

Would you like to digitize your processes? Talk to us! Our experts will competently inform you about financing opportunities for your project: 00800 2632 3474 Fundings (in German)

Together we dive into digital

Would you like to digitize your processes? Talk to us! Our experts will competently inform you about financing opportunities for your project: 00800 2632 3474 Fundings (in German)

Country-specific grant funding for a digital transformation What grant-funding programs are there?

go-digital – a grant-funding program of the German Federal Ministry for Economic Affairs and Energy (BMWi)

Who is eligible for go-digital funding?

go-digital supports digitalization projects with budgets of up to 16,500 Euros. The target group are SMEs and craft businesses that meet certain requirements:

  • No more than 100 employees (including all partner companies and affiliates)
  • Prior-year sales or balance sheet total of no more than 20 million Euros
  • Has a business or branch in Germany
  • Eligible under the De minimis Regulation

What types of projects does go-digital fund?

The go-digital grant-funding program supports small and medium-sized enterprises (SMEs) and craft businesses that want to digitalize and optimize their business processes. The SME is supported by authorized consulting companies such as codafish. codafish accompanies you from the initial consultation through to the application process, while also providing practical support in the implementation of the digitalization process.

Five different conveyor modules, which can be combined with each other, are available:

Module: Digital Market Development

The Digital Market Development module promotes the development of online marketing strategies and the professionalization of the online presence. The measures are intended to help the company maintain and increase sales and competitiveness long term.

Module: Digitized Business Processes

With the Digitized Business Processes module, go-digital promotes the introduction of e-business software solutions that digitalize the workflows in the company as much as possible in all areas. Some workflow examples: Shipping and returns management, logistics, warehousing, electronic payment methods.

Module: IT Security

The IT Security module promotes all measures that bring more security to the company. Weaknesses in the existing or newly planned ICT infrastructure are identified here. The goal is to minimize economic damage and the risk of cybercrime.

Module: Digitalization Strategy

The Digitalization Strategy module promotes the development of new digital business models or processes. Processes suitable for consideration are, for example: needs analyses, feasibility analyses and risk assessments.

Module: Data Competence

The Data Competence module supports projects that revolve around the acquisition and generation of data and the use of artificial intelligence (AI) in data processing. An important aspect is also the GDPR-compliant handling of data.

What is the maximum amount of go-digital grant funding?

The rate of grant funding is 50% of a maximum daily consultant rate of 1,100 euros net. As the grant-funded company, you only pay a partial contribution to the consulting company. A maximum of 30 consultant days can be claimed, which can be combined with different modules. The digitalization project must be completed within 6 months.

Example:

After you (the company) and codafish (the consulting company) have agreed on the scope and procedure of your digitalization, we find that we will need a total of 40 consulting days in three modules for the project.

40 x 1.100 Euro = 44.000 EUR

go digital grant funding: 30 x 1.100 Euro = 32.000 EUR with 50 % = – 16.500 EUR

Your contribution: 27.900 EUR

codafish is an authorized consulting company for the grant-funding program. We advise and support you in your digitalization project. And, best of all: codafish will take care of your funding application for you!

Digital Jetzt – a grant-funding program of the German Federal Ministry for Economic Affairs and Climate Protection (BMWK)

What types of projects does Digital Jetzt support?

The Digital Jetzt grant-funding program is aimed at medium-sized companies from all sectors, craft businesses and professionals. Digital Jetzt supports projects with a maximum budget of 50,000 Euros. In certain cases, up to 100,000 Euros.

The SME must meet the following requirements:

  • Company has 3 to 499 employees
  • Company has a branch or a permanent establishment in Germany
  • The De minimis Regulation (De minimis aid must not exceed 200,000 Euros within an uninterrupted period of three tax years)

Which projects can be funded through Digital Jetzt?

The grant-funding program is divided into two funding modules:

  • Investment in digital technologies
  • Investment in the qualification of employees

A combination of both modules is also possible with Digital Jetzt.

And what is the maximum amount of Digital Jetzt funding?

The maximum amount of grant-funding per company is 50,000 Euros. For investments in value chains, the grant-funding amount can be up to 100,000 Euros.

The subsidy is calculated in proportion to the investment costs. The funding rate is staggered according to the number of employees:

  • Up to 50 employees: up to 40%
  • Up to 250 employees: up to 35%
  • Up to 499 employees: up to 30

Important note: In contrast to go-digital, the application for grant funding is submitted by the requesting company, itself. The possibility of submitting an application for grant funding is also determined on a monthly basis as part of a random procedure. Find out about the conditions on the BMWK website:https://www.bmwk.de/Redaktion/DE/FAQ/Digital-Jetzt/faq-digital-jetzt.html

BAFA Grant Funding – “Funding entrepreneurial know-how”

For whom is the BAFA grant funding’s “company consultation” suitable?

BAFA funding is aimed at young companies based in Germany. Companies can seek advice from qualified consultants on topics such as: economics, finance, human resources or matters related to their organization. Existing companies and companies in difficulty can also be advised.

What can be funded through the program?

The company can seek advice on all economic, financial, personnel and organizational issues relating to corporate governance.

Special consultations are also grant-funded, such as: business management for women entrepreneurs or immigrants. There is also grant funding available for topics such as sustainability and environmental protection, as well as for recruiting and securing skilled workers.

What is the maximum amount of BAFA grant funding?

The amount of the grant is based on the maximum eligible consulting costs (assessment basis) and the location of the company. The subsidy ranges from 1,500 – 3,200 Euros. The exact amounts can be found in the overview of funding on the BAFA website:https://www.bafa.de/DE/Wirtschaft/Beratung_Finanzierung/Unternehmensberatung/unternehmensberatung_node.html

It is also interesting to learn about grant-funding programs within your own federal state. For this article, we have briefly summarized one program each for Hamburg and Baden-Württemberg. For more detailed information on the terms and conditions of the grants, please consult the respective funding agencies.

Hamburg Digital

Who is eligible for funding:

  • Small and medium-sized enterprises (SMEs) in the industrial and craft sectors
  • Professionals (e.g., doctors/tax consultants)
  • Companies with a registered office or permanent establishment in Hamburg
  • SMEs with a maximum of 250 employees

What types of activities can be funded?

The Hamburg Digital funding programs supports digitalization through two modules.

Module I: Hamburg Digital “Check” funds spending on consulting services provided by consultants with a go-digital certification.

In Module II: Hamburg-Digital Invest, investments for the implementation of strategies and concepts can be funded. Module II also allows funding for ICT hardware and software.

What are the funding amounts?

An application can only be made for eligible expenses from 3,000 Euros.
In Module I, expenses for consulting services are subsidized in the amount of 50% of up to the maximum funding amount of 5,000 Euros.

Module II, on the other hand, provides for 30% of the investment project’s expenditure. The maximum grant funding amount is 17,000 Euros.

More information about IFB Hamburg’s Hamburg Digital Funding:https://www.ifbhh.de/foerderprogramm/hamburg-digital

Digitalization Premium Plus – Subsidy Option for Baden-Württemberg

Who is eligible for funding from Digitalization Premium Plus?

Companies that:

  • Work freelance or commercially.
  • Have no more than 500 employees.
  • Are not businesses in difficulty within the meaning of the EU right of relief.
  • Invest in Baden-Württemberg.

Which projects are funded?

Digitalization of processes in the company. Furthermore, the optimization of ICT security and the costs of hardware and software, as well as related services and training, can be grant funded.

What are the funding amounts?

For an eligible expenditure of 5,000 Euros up to and including 40,000 Euros, 40% will be grant funded, to a maximum of 4,000 Euros. If the eligible expenditure amounts to more than 40,000 Euros up to and including 100,000 Euros, it will be funded at a value of 10%, to a maximum of 10,000 Euros.

Read the exact conditions on the L-Bank website and inform yourself about the loan variant options: https://www.l-bank.de/produkte/finanzhilfen/digiplus-zuschuss.html

Together we dive into digital

Would you like to digitize your processes? Talk to us! Our experts will competently inform you about financing opportunities for your project: 00800 2632 3474 Fundings (in German)

We are happy to advise you on all questions about go-digital and take care of your funding application for you. Would you like to find out whether your company can claim grant funding through go-digital? Fill in the contact form or call us directly: 00800 2632 3474

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