Anyone investing in new software sooner or later asks: is there funding for this? The answer is often yes, but rarely as simple as the adverts suggest. Funding programmes for digitalisation come and go. Well-known federal programmes have ended in recent years, new ones have appeared, and the conditions change all the time.

That is why this article gives no amounts or rates. It shows where to look for what is currently on offer, which kinds of funding exist and which rules apply almost everywhere. It reflects the position as of September 2026. Whether a project is funded is decided solely by the body that runs the programme.

The most important rule: apply first, commission second

For most grant programmes, the application has to be submitted before you place an order or sign a contract. If you commission first and look for funding afterwards, you will usually come away with nothing. Some programmes also require approval to be granted before you start.

So settle the funding question before you commit. You can normally obtain a quote or an estimate - you will usually need one for the application anyway. Sign only once it is clear what the funding body requires.

Kinds of funding

  • Grant: the funding body covers part of the cost, which does not have to be repaid. The most popular form, but also the one with the most conditions and often limited budgets.
  • Development loan: a loan on better terms than from your own bank, sometimes with part of it waived. It is usually applied for through your own bank.
  • Subsidised consulting: the funding body pays part of a consultancy, for instance an analysis of your workflows before software is developed.
  • Free services: information events, workshops and initial conversations paid for by public bodies.
  • Research and development funding: for projects where something genuinely new is created, not for introducing something that already exists.

Where to look

The federal funding database

The Federal Ministry for Economic Affairs runs the Förderdatenbank, which lists programmes from the federal government, the federal states and the EU in one place. You can filter it by state, type of funding and topic. It is the best starting point for an overview of what is available right now.

KfW

KfW, the German development bank, offers development loans, including one for digitalisation projects. You apply through your own bank, which has a say in the decision. So ask there early.

BAFA

The Federal Office for Economic Affairs and Export Control (BAFA) subsidises consultancy for small and medium-sized businesses, including on digitalisation. This funding has recently been time-limited. Check with BAFA whether and in what form it is currently available.

ZIM

The Central Innovation Programme for SMEs (ZIM) funds research and development projects. It is not meant for introducing standard software. But if your project creates something technically new, it is worth a look.

State development banks

Every federal state has its own development bank, in Hamburg for example IFB Hamburg. The states often have their own programmes for digitalisation and innovation, and these are sometimes easier to apply for than federal ones.

Mittelstand-Digital centres

The Mittelstand-Digital centres are funded by the federal government and offer free information, workshops and conversations on digitalisation and AI. They do not finance projects, but they help you put a plan into perspective.

Chambers of commerce and crafts

Your chamber (IHK or Handwerkskammer) knows the programmes in your region and often has its own funding advice. A phone call there often saves you searching the database.

For every programme: check the current conditions directly with the body that runs it. What an article or an advert says may be out of date.

What funding bodies usually want to see

  • A clear description of the project: what should change in the business, and why?
  • A quote or cost estimate from a supplier.
  • Company details: size, turnover, often a declaration that you are a small or medium-sized enterprise.
  • A contribution of your own: hardly any programme covers the full cost.
  • A schedule: when does the project start, and when does it end?

A high-level concept helps here. If you have already written down what the software should do and why, you have done the hardest part of the application.

What to watch out for

  • Funding is no reason for a project. A project should pay off without funding too. Funding makes it cheaper, not more sensible.
  • Be wary of offers built around funding rates. If the price is set so that exactly a round figure remains after the grant, ask what you are actually getting.
  • Expect paperwork. Applications, evidence and final reports take time. Some businesses get help from funding advisers.
  • The conditions apply to the end. If you change the project substantially along the way, you often have to agree it with the funding body.

What we do and what we do not

We are not funding advisers and cannot promise that a project will be funded. What we can do: describe the project and estimate the effort. You can use these documents for an application. Check with the funding body what it requires. If you wish, we agree the start of a project so that the funding is settled first. How to find a suitable supplier is covered in choosing a software partner.

Checklist

  • Have you searched the funding database and asked your chamber about current programmes?
  • Is it clear whether the application must be submitted before you commission anyone?
  • Is there a written description of the project?
  • Do you have a quote or estimate to attach to the application?
  • Would the project pay off without funding?