Funding opportunities for companies in Germany: an overview of federal and state programs

Companies in Germany usually finance digitalization and AI projects through a Combination of federal and state programs: The federal government primarily supports consulting and guided change – through BAFA consulting funding and INQA-Coaching –, while many states additionally support implementation and investments in software or hardware. Which programs apply depends on the company’s location, its size, and the specific project.

Federal funding programs for consulting

BAFA consulting grant

Grant for management consulting up to €3,500 in costs: 80 % in the new federal states as well as the Lüneburg and Trier regions, 50 % in the former federal states, in Berlin and in the Leipzig region. Consultations on economic, financial, personnel and organizational issues are funded – including the use of AI. Applications are only possible until 31/12/2026 possible. Details: BAFA consulting funding.

INQA coaching

Federal Ministry of Labour and Social Affairs programme: nationwide 80 % grant for up to twelve consulting days at a maximum of €1,200 each, i.e. up to €11,520. Funding is available for a participation-oriented process to shape digital transformation. Coaching vouchers are available until 30.06.2028. Details: INQA-Coaching.

The direct comparison shows INQA-Coaching or BAFA funding.

Further federal programs

• KfW promotional loans for digitalization and innovation projects – terms and programs change, so check directly with KfW or your local bank.
• Central Innovation Programme for SMEs (ZIM) for research and development projects, more suitable for technology-oriented companies.
• Federal funding database (foerderdatenbank.de): the official search across all federal, state, and EU programs.

TODO: check – verify the current terms of KfW digitalization loans and ZIM before publication.

State programs: examples from three federal states

Bavaria: Digitalbonus (e.g. for Nuremberg)

The Digitalbonus Bavaria supports small companies with fewer than 50 employees and annual revenue or balance sheet total of no more than €10 million, and with an establishment in Bavaria. The Digitalbonus Standardsubsidizes up to 50 % of eligible expenses with up to €7,500, the Digitalbonus PlusProjects with particular innovative content with up to €30,000. Funding is provided for, among other things, software, hardware, as well as accompanying consulting and training in the areas of digitalization and IT security. The program runs until 31/12/2027; the measure must not have started before the application is submitted. Source: digitalbonus.bayern.

North Rhine-Westphalia: Mittelstand Innovativ & Digital (e.g. for Dortmund)

In North Rhine-Westphalia, the program “Mittelstand Innovativ & Digital” (MID) has been administered by NRW.BANK since January 2026. Since then, the module MID-Digitalisierung has supported the development of market-ready digital products with high innovation potential, for example based on AI, with 50 % and at most €15,000; applications are submitted through a monthly lottery procedure. For internal process digitalization and IT security, NRW.BANK refers to additional MID modules. Source: nrwbank.de. TODO: check – verify the terms of the “MID-Digitale Prozesse” and “MID-Digitale Sicherheit” modules before publication.

Mecklenburg-Western Pomerania: Digitalization funding

MV offers its own state funding for digitalization projects, which can be combined with the 80% BAFA funding and INQA-Coaching. Details on the page Digitalization Funding MV and in the article Funding for AI Projects in MV.

How to combine programs sensibly

1. Get analysis funded: BAFA consulting (until 31.12.2026) or as part of an INQA coaching.
2. Finance implementation: state program for software and hardware, where available – otherwise own funds or a subsidized loan.
3. Support implementation: INQA coaching with employees, for a different project than the BAFA consulting.

Important: Double funding of the same costs is excluded, and almost all programs require that the measure has not been started before the application was submitted. Many grants are also de minimis aid with a cap over three years.

Regional contacts

Chambers of Industry and Commerce, Chambers of Crafts, and city economic development agencies provide free advice on the programs in their region. For the INQA initial consultation, an INQA advisory center is responsible – you can find an overview by city on the page INQA-Coaching, for example INQA-Coaching Nürnberg or INQA-Coaching Dortmund.

Which federal funding programs fit your project is shown by the Funding Check. bettersorted is a BAFA-registered consultant and authorized INQA coach.

Typical mistakes when searching for funding

• Applied too late:Anyone who has already ordered or signed is usually out.
• Wrong program:Consulting programs do not fund software, investment programs do not fund consulting.
• Missed deadlines: The BAFA consulting grant ends for applications on 31.12.2026; state programs have their own terms and quotas.
• Region assessed incorrectly: The BAFA rate is based on the location of the business premises – Berlin and the Leipzig region are at 50 %.
• Company size not checked: Some programs are aimed only at small companies, for example the Digitalbonus Bayern for businesses with fewer than 50 employees.

Example: a digitalization project in three funding steps

An illustrative example for a small business in Bavaria:

1. Analysis: BAFA-funded consulting on the question of which processes should be digitized and supported with AI (in Bavaria, 50% grant, application deadline 31.12.2026).
2. Implementation: Procurement of software through the Digitalbonus Bayern (up to 50%, apply before starting).
3. Introduction: INQA coaching for redesigning workflows with the team (80%, for a different project than the BAFA consulting).

Whether this combination is permissible in an individual case depends on the program conditions; clarify this before submitting the first application.

City grants for funding

For many cities, we have compiled the funding situation and the relevant contacts, for example BAFA funding Nuremberg, BAFA funding Dortmund, Munich or Cologne.

Frequently Asked Questions

What funding opportunities are available for companies in the Nuremberg region?

At the federal level, the BAFA consulting grant (50% in Bavaria, applications until 31.12.2026) and INQA-Coaching (80%). At the state level, the Digitalbonus Bayern for small companies with grants of up to 50% for digitalization and IT security.

What funding opportunities are available for companies in the Dortmund region?

At the federal level, the BAFA consulting grant (50% in NRW, applications until 31.12.2026) and INQA-Coaching (80%). In NRW, there is also the Mittelstand Innovativ & Digital (MID) program from NRW.BANK with various modules.

Can BAFA and state funding be combined?

Yes for different costs, no for the same costs. Typically: consulting via BAFA or INQA, implementation via a state program. The conditions of the respective program are decisive.

Where can I find all funding programs?

In the federal funding database (foerderdatenbank.de), which makes programs from the federal government, states, and EU searchable. Chambers and economic development agencies can help with classification.

As of: October 2026. Only the respectively valid funding guidelines are authoritative.