Companies - The economic promotion of L-Bank decreases significantly
Companies from the Southwest have taken significantly less funding from their regional L-Bank in the first half of the year. The funding volume from January to June amounted to 1.68 billion Euro - a good 19% lower than the previous year, as the bank based in Karlsruhe reports. The number of funded companies therefore decreased by around 30% to approximately 5500.
In particular, medium-sized companies have reportedly invested less: The approved funding amounted to around 791 million Euro. That's 38% or 485 million Euro less than the previous year. The numbers have decreased across all programs.
Difficult economic conditions
The first half of the year in economic promotion was, according to L-Bank CEO Edith Weymayr, marked by challenging economic and political framework conditions. The investment readiness of Southwest companies was overall subdued and the new business volume correspondingly significantly decreased. An exception was the funding for new business foundations, which was roughly on the level of the previous year.
Credit institutions such as the L-Bank - short for Landeskreditbank - manage funds for individual federal states and distribute them further. They set up special programs for this, for example for digitalization, innovation and sustainability. In addition to business promotion, the L-Bank is also responsible for housing promotion and parental benefits.
- Despite the challenging economic conditions, Baden-Württemberg companies continued to prioritize their own finances, leading to a decrease in funding from the L-Bank in Karlsruhe.
- The main task of credit institutions like L-Bank is not only to promote businesses but also to provide funding for housing and parental benefits, as highlighted by the bank's diverse programs.
- The economic promotion programs offered by L-Bank experienced a decrease in funding, with medium-sized companies being among the most affected, leading to a 38% decrease in approved funds compared to the previous year.
- The decline in funding from the L-Bank in the first half of the year is reflected in the bank's report, showing a 19% reduction in overall funding volume, with the number of funded companies decreasing by around 30%.
