Micro-mezzanine fund (REACT-EU)

The programme aimed to strengthen the capital base of small and micro enterprises and start-ups by providing small-scale mezzanine financing. Under REACT-EU, enterprises funded by the already existing Micro-mezzanin fund II (MMF II) received financing on more favourable terms.
For small enterprises and start-ups, too little equity capital is often an obstacle to accessing loan capital. With MMF micromezzanine funding, small and micro enterprises and start-ups can improved their capital adequacy ratio and thus increased their risk sustainability. This made it easier for them to access further funding and start up a business.

Silent participation

The MMF provided micromezzanine financing in the form of silent participations of up to 50,000 euros. Enterprises belonging to the specific target group of the MMF, could benefit from a participation of up to 150,000 euros. Special target groups were enterprises that provided vocational training, were founded out of unemployment or were run by women or people from migrant backgrounds. Social economy enterprises with a commercial orientation and enterprises oriented to environmental protection were also particularly addressed.

Silent participations were issued by Mittelständische Beteiligungsgesellschaften (holding companies) operating in the individual Länder, which, as silent partners, participated in the enterprises for a period of ten years. Repayments were made in equal annual instalments for the first time after seven years. In return for the financing, companies had to pay a profit-based remuneration of up to 1.5% of the deposit. In addition, non-profit remuneration of generally 8% per annum in relation to the nominal amount of the deposit had to be paid quarterly.

Thanks to interest subsidies financed by REACT-EU, enterprises received silent partnerships on much more favourable terms:

  • For enterprises that have already received a stake before 30 July 2021 (existing enterprises), the non-profit remuneration was fully assumed by REACT-EU by 31 March 2022. By 31 March 2022, fixed charges were therefore in principle be reduced to 0% for all existing enterprises from 8.00% per annum in relation to the nominal amount of the deposit.
  • From 1 April 2022 to 31 December 2023, non-profit remuneration for existing companies were reduced from 8% to 4.00% per annum. For enterprises receiving new contributions from 30 July 2021, the non-profit remuneration were reduced to 4% per annum by 31 December 2023.

Profile of the programme

Target group
  • Enterprises
  • Start-up entrepreneurs
Implementation period

2021.07.30 - 2023.12.31

  • Federal Ministry for Economic Affairs and Climate Action
Funding priority


Additional Information


Bundesministerium für Wirtschaft und Klimaschutz

Referat VIIC 3

Villemombler Strasse  76
53123 Bonn