Aviation development loan

• Strengthen the aviation industry in Germany
• Reduce development, market and programme risks and funding gaps in aircraft development programmes
• Increase/secure value creation and jobs in Germany

Which areas are supported?

• Alternative, climate-neutral drive systems,
• reduction of primary energy requirements and use of resources,
• reduction of production times and costs with the primacy of closed material cycle systems,
• but also other areas of innovation, e.g. noise reduction, digitalisation or the development of industrial core competencies

What is eligible for funding?

For example, the following are eligible:

• Weight reduction,
• Avoidance of environmentally harmful substances,
• Cabin design,
• Maintenance, repair and overhaul (MRO),
• Increased performance or noise reduction in propulsion systems,
• Development of commercially viable prototypes and pilot projects if: a) commercial end products and b) production for demonstration and evaluation purposes alone would be too expensive

How does the application process work?

• Application to the Federal Ministry of Economics and Climate Protection - Aviation Department
• Application review by BMWK and mandatary of the Bundes
• KfW concludes loan agreement

What term is set?

The term is from 1 January 2024 to 31 December 2028.

What is the scope of the funding programme?

The volume amounts to EUR 300 million per programme term.

Who is eligible to apply?

Companies that have a permanent establishment or branch in Germany are eligible to apply.

When can the application be submitted?

Applications can be submitted at any time; without calling

What type and amount of funding is available?

• Legal basis: General Block Exemption Regulation (GBER)
• Interest-bearing loans, partially conditionally repayable
• Amount: Maximum 55% of the eligible costs incurred in Germany for the development project
• Conditionally repayable loan amount over EUR 25 million => Notification requirement

What types of loan are available?

• Max. 55% of eligible costs, of which up to 30/55 (for SMEs), 25/55 (for SMEs) and 15/55 (for JVs) are unconditionally repayable, interest-bearing under market conditions (not relevant to state aid)up to 25/55 as an interest-bearing, conditionally repayable loan (i.e. depending on the number of units) (relevant to state aid)
• The Federal Government bears the default risk via a guarantee in favour of KfW (risk-and-revenue-sharing partnership)

Choice between three options: