Funding programmes for social sustainability

Joint task for the “Improvement of regional economic structure” (GRW)

The GRW is the central instrument of regional policy Germany. Its programme’s system of objectives is no longer focused solely on job creation today, but pursues several core objectives in line with a stronger orientation towards sustainability, such as offsetting regional disadvantages and increasing growth and prosperity. Transformation processes towards a climate-neutral and sustainable economy are now also among the focal points of the GRW.

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 2025, the loan amount has been increased to up to EUR 50,000. Loans are granted at subsidised interest rates without requiring standard bank collateral, using a simplified yet personalised 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 programmes available to social enterprises. Our sustainability programme aims to strengthen social entrepreneurship and the common-good economy while developing tailored financing tools. In recent years the programme guideline for Pro FIT has been expanded alongside the programmes of IBT GmbH to better support social innovation.

IBB home for the elderly

With its home for the elderly programme, IBB specifically supports measures that make life safer, more comfortable, and more inclusive for all generations. The programme is aimed at landlords, housing companies, and investors. They receive low-interest loans for the barrier-free modernisation 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 programme 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 programme.

With the KfW age-appropriate conversion programme, 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 EUR 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 programme 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 EUR 5,300 per square metre and construction cost grants of up to EUR 1,500 per square metre. The prerequisite is that the subsidised flats are built in accordance with the 2026 housing subsidy regulations and offered at socially acceptable rents.

IBB supports the creation of housing for apprentices and students in Berlin. Funding is available for new construction, conversion and extension projects involving residential buildings. Eligible applicants include municipal and private housing companies, landlords, investors, social service providers, public-benefit-oriented enterprises, and public law institutions of the State of Berlin.

Funding includes interest-free loans of up to EUR 3,600 per square metre and construction cost grants of up to EUR 2,200 per square metre. A prerequisite is that the subsidised housing units are developed in accordance with the Administrative Regulations for the Promotion of Student Housing and Housing for Apprentices and are offered at socially affordable rents.

IBB supports the construction of shared housing and the acquisition of turnkey new-build projects. With a grant of EUR 30,000 per housing place, it supports both social service providers seeking to create new housing and other project sponsors cooperating with recognised social service providers in the development of housing.

IBB supports households holding a housing eligibility certificate (Wohnberechtigungsschein – WBS) in the initial acquisition of membership shares in housing cooperatives through interest-free loans and loan forgiveness of up to 25 percent.

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+ programme's overarching targets 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+ Programme 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.