BAFA funding for business consulting

Many small companies and freelancers in Germany do not know that the state can cover part of the cost of an external business consultant. The programme “Förderung von Unternehmensberatungen für KMU” run by the Federal Office for Economic Affairs and Export Control (BAFA) pays a significant share of the consulting fee, depending on the region and the calculation basis. Below we explain in detail how BAFA funding works, who can apply, how much the grant is and which mistakes most often lead to rejection in practice.

An overview of all Vitavia Akademie consulting areas is on the page All consulting services. Related topics: marketing consulting and career consulting.

What BAFA funding for business consulting is

The programme is funded by the Federal Ministry for Economic Affairs and Energy together with the European Social Fund Plus and is aimed at small and medium-sized enterprises (KMU) as well as members of the liberal professions (Freie Berufe). It is a non-repayable grant towards external, conceptual business consulting – not a loan and not an advance that has to be paid back. The legal basis is the guideline “Förderung von Unternehmensberatungen für KMU” of 14 December 2022, as amended on 12 December 2024. The current guideline applies to applications submitted by 31 December 2026.

The aim of the programme is to strengthen the competitiveness and resilience of small and medium-sized businesses and to secure jobs by making professional external consultants easier to access. This is particularly important for companies that could not otherwise afford to pay for consulting entirely out of their own pocket.

Who can apply

Applications can generally be made by micro, small and medium-sized commercial enterprises and members of the liberal professions that meet the EU definition of an SME. Guide thresholds:

• fewer than 250 employees;
• annual turnover of no more than €50 million or a balance sheet total of no more than €43 million;
• registered office and business activity – or at least a branch – in Germany.

According to the programme information, new companies that do not yet have annual accounts may state these figures as a well-founded estimate “to the best of their knowledge”. Whether a specific company is eligible is ultimately checked by the regional office (Leitstelle) or BAFA when the application is reviewed.

How much the grant is: calculation basis and regional rates

According to the funding guideline (version of 12 December 2024), eligible consulting costs of up to €3,500 per consultation apply to all eligible businesses, young and established alike. The funding rate depends on where the business is located:

The key is the logic of the calculation: €3,500 is not the amount paid out but the upper limit of costs on which the grant is based. Depending on the location, the actual grant is therefore at most €1,750 (50%) or €2,800 (80%) – not the full €3,500. In addition, since 15 November 2025, applicants without the right to deduct input VAT (Vorsteuerabzug) – for example many Kleinunternehmer and freelancers – have the grant calculated on the invoice amount actually paid including VAT (gross). This rule applies to consultations started after 15 November 2025 and noticeably reduces the financial burden for this group.

Which consulting topics are eligible

The programme is broad in scope and covers economic, financial, personnel and organisational questions of running a company. According to the programme information, funded consulting may cover, among other things:

• recruiting and retaining skilled workers;
• cost reduction and economic optimisation;
• changing the business model;
• dealing with falling turnover or liquidity problems;
• changing the range of products and services;
• investment planning;
• optimising processes and organisation;
• quality management;
• support with introducing new systems, for example IT;
• sustainability and environmental protection;
• age-appropriate work organisation;
• equal opportunities and work–family balance;
• work organisation for employees with disabilities;
• integrating employees with a migration background.

What is funded is not ongoing support but conceptual, individual consulting: analysing the company’s situation, identifying weaknesses and giving concrete recommendations, usually recorded in a consultant’s report (Beratungsbericht).

What is not eligible

The exclusion criteria are just as important as the list of topics. According to the programme information, the following are not funded, among others:

• seminars, workshops and group events – only individual consulting;
• consulting whose costs are already covered by other public grants (ban on double funding, Kumulierungsverbot);
• brokerage services;
• consulting aimed at selling the consultant’s own goods or services;
• consulting mainly on legal and insurance matters, tax advice or expert reports;
• consulting solely on how to obtain grants (Fördermittelberatung);
• content that is unethical or contrary to applicable law.

Requirements for the consultant

Not every consultation automatically qualifies for funding – the consultant must also meet certain criteria. According to the programme information, these include:

• self-employment as a consultant or consulting firm whose main business – more than 50% of turnover – is paid business consulting;
• the necessary qualifications and reliability;
• a suitable quality assurance instrument, for example a recognised certificate or a documented quality manual;
• proper conduct of business and consulting in accordance with the guideline.

In practice this means for the company: before signing a contract, ask the consultant directly whether they meet the conditions for BAFA-funded consulting and whether they have experience with the procedure.

How to apply for BAFA funding: step by step

The procedure is fixed, and in practice you should follow it closely:

1. Check. Does the company belong to the target group, and does the planned consulting topic concern eligible management questions?
2. Choose a consultant. Does the consultant meet the requirements of the guideline?
3. Submit the application. The application is submitted online on the BAFA platform before the consulting starts, in many cases via the regional Leitstelle. Companies in business for less than 12 months also attend an information meeting at a regional contact point.
4. Wait for the information letter. The consulting may only start once you have received BAFA’s non-binding information letter (Informationsschreiben).
5. Carry out the consulting. The conceptual, individual consulting lasts a maximum of five days in total; the days do not have to be consecutive. Writing the report and travel may go beyond this.
6. Proof of use. No later than six months after receiving the information letter, you submit the proof of use (Verwendungsnachweis) electronically – it includes, among other things, the consultant’s report and the invoice.

How often funding is available

During the term of the current guideline – that is, until 31 December 2026 – a company can, according to the programme information, receive funding for five separate consultations, but no more than two per calendar year. In addition, the de minimis aid ceilings must be observed: they apply independently of this programme and limit the total amount of state aid a company receives.

BAFA funding and other consulting support programmes

BAFA funding for business consulting is broad in scope. For specialist questions, another programme may be a better fit:

Because of the ban on double funding, several programmes cannot usually be combined for the same consultation. So before applying, it is worth briefly assessing which programme best matches the consulting topic. If you are starting a business while unemployed, also take a look at AVGS coaching, a related support instrument.

Who can benefit most from BAFA funding

In practice, the programme helps most when an important decision about the company’s direction is coming up. Example: a young repair workshop needs a realistic cost calculation and a decision on expanding its services for the first time, a year after opening – structured external consulting with BAFA funding can help here. Another example: a small established firm faces falling turnover and is considering a new business model – consulting on exactly this topic can be funded. The examples only illustrate the logic of the programme and do not mean that funding will be approved in a specific case.

The programme is generally less suitable for purely technical services without a conceptual consulting component, for day-to-day tax or legal questions and for standard seminars and group formats.

Frequently asked questions

Information as of October 2026

Sources