Funding Programs for Social Sustainability

Joint Task for the "Improvement of Regional Economic Structure" (GRW)

The GRW is the most important regional policy instrument in Germany.The newly reformed GRW regulations ("Coordination Framework") came into effect on January 1, 2024. Key elements of the GRW reform in the context of sustainability include its expanded target system. This is no longer focus solely on job creation but now aim to:

• Compensate location disadvantages
• Create and secure employment
• Increase growth and prosperity
• Accelerate transitions to a climate-neutral and sustainable economy

Microloans from the SME Fund

For over 20 years, IBB has been one of the pioneers in Europe in providing inclusive microloans to start-ups and micro-enterprises. Through the SME Fund, we provide access to finance for target groups who face restrictions in accessing bank loans due to low equity, lack of collateral, limited collateral and credit history, or high fixed costs for small loans. Since June 1, 2025, the loan amount has been increased to up to EUR 50,000. Loans are granted at subsidized interest rates without requiring standard bank collateral, using a simplified yet personalized application and decision-making process. Cooperation with local start-up and counselling initiatives ensures an above-average share of women entrepreneurs and individuals with migration or refugee backgrounds benefit from these loans.

Social Enterprises

In 2018, IBB became the first German development bank to make its commercial economy programs available to social enterprises. Our sustainability program aims to strengthen social entrepreneurship and the common-good economy while developing tailored financing tools. In recent years, program guidelines, such as those for Pro FIT and Berlin Innovation Workforce (Berliner Innovationsfachkräfte), have been expanded in parallel to the IBT offerings to better support social innovation.

IBB home for the elderly

With its home for the elderly program, IBB specifically supports measures that make life safer, more comfortable, and more inclusive for all generations. The program is aimed at landlords, housing companies, and investors. They receive low-interest loans for the barrier-free modernization of their housing stock in Berlin, thereby making an active contribution to social cohesion and a better quality of life for their tenants.

Among other things, the program supports the installation of elevators, the barrier-free conversion of bathrooms, measures to improve everyday orientation, and projects for multigenerational living and communal spaces. Burglary protection can also be improved through the program.

With the KfW age-appropriate conversion program, IBB promotes construction projects in Berlin that enable people to enjoy greater independence and safety in their own homes. These projects can involve owner-occupied properties or rented accommodation that is to be made barrier-free. The low-interest loan amounts to up to €50,000 per residential unit.

Funding is available for measures to reduce barriers, increase living comfort, and protect against burglary. This creates conditions that maintain quality of life: individually designed living space that can continue to be used independently in old age or with physical limitations.

The funding program helps to preserve living space in Berlin and make it inclusive and safe.

Since 2014, IBB has been promoting social housing construction in Berlin with the IBB new housing fund. The aim is to create affordable living space through new construction, purchase, or conversion. Support is provided to municipal and private housing companies, cooperatives, and investors.

The funding includes interest-free or low-interest loans up to €5,300 per square meter and construction cost subsidies up to €1,800 per square meter. The prerequisite is that the subsidized apartments are built in accordance with the 2023 housing subsidy regulations and offered at socially acceptable rents.

Under the mandate of the State of Berlin, the European Social Fund Plus (ESF+) is being implemented for the funding period 2021–2027. It promotes social and economic cohesion in Europe, focusing on investments in people.

A total of 16 funding instruments, co-financed by ESF+ (40%), are focused on the three priority areas: workforce skills development, education, and social inclusion. Funded projects support the ESF+ program's overarching goals and principles.

Cross-cutting principles include:

• Equal opportunities and non-discrimination
• Gender equality
• Environmental sustainability

In suitable cases, the "Good Work" principle is also considered in project selection. ESF+ aims to contribute to environmental sustainability by introducing young people to climate-neutral and environmentally friendly practices, promoting environmentally relevant career paths, and supporting start-ups in sectors like environmental protection and circular economy.

Positive impacts on environmental sustainability will also be ensured through awareness-raising in all funding instruments, e.g. by addressing aspects of resource- and environment-friendly management and linking them to the actions of participants. The ESF+ thus contributes within its possibilities to the new growth strategy of the European Green Deal and supports the transition to a resource-efficient economy without greenhouse gas emissions. The Green Deal is based on the UN Sustainable Development Goals and the objectives of the Integrated National Energy and Climate Plan.

Berlin project sponsors can apply for ESF+ funding as part of various competitions or calls for proposals. The IBB acts as an "intermediary body" (ZGS) for the funding. The task of the ZGS is to implement the ESF+ Program 2021-2027 Berlin, from the approval of measures to the implementation of verification procedures. The IBB is therefore responsible for the entire management of the funding.