BAFA Funding 2026: Higher Cost Cap, Less Bureaucracy

BAFA funding in 2026 is becoming simpler and more generous for small and medium-sized enterprises. At the turn of the year, the maximum amount for eligible consulting costs rose to a uniform 3,500 euros, and the former distinction between young companies and established companies was dropped. If you are planning subsidized consulting, for example on process automation or AI adoption, you should know the new rules before submitting an application.

What is changing in the BAFA funding for 2026?

The most important change: the maximum amount of eligible consulting costs is now uniformly 3,500 euros, regardless of how long your company has been on the market. This significantly simplifies the "Funding for Business Consulting for SMEs" program run by the Federal Office for Economic Affairs and Export Control.

• Higher cost cap: Under the old tiered system, established companies were only eligible for 3,000 euros. Now the higher cap of 3,500 euros applies uniformly.
• No more classification: The classification into young companies, established companies, and companies in difficulty no longer applies to the maximum amount. You no longer need to prove your founding date as a criterion.
• Duration secured: Applications are still possible until December 31, 2026.

This is based on the current BAFA funding guideline of December 12, 2024 (Section 5.2). Source: BAFA, Funding for Business Consulting for SMEs.

How much is the subsidy depending on location?

How much you actually get reimbursed depends on the location of your business establishment. The funding rate is applied to eligible consulting costs of a maximum of 3,500 euros.

• New federal states: 80 percent of eligible consulting costs, up to a maximum of 2,800 euros. This includes the regions of Lüneburg and Trier, but excludes the state of Berlin and the Leipzig region.
• Old federal states: 50 percent of eligible consulting costs, up to a maximum of 1,750 euros. This includes the state of Berlin and the Leipzig region.

A calculation example from our practice: a craft business from Mecklenburg-Western Pomerania commissions an automation consultation with a fee of 3,500 euros net. Because the business is located in the new federal states, the 80 percent rate applies. The subsidy amounts to 2,800 euros, and the own contribution drops to 700 euros net. At NordFlux, we plan consulting services from the outset so that they fit within this framework.

Why is the elimination of the classification an advantage?

The elimination of company classes reduces bureaucratic effort and creates planning certainty. Previously, the maximum funding pot depended on the age of the company, which led to uncertainty especially in the first years after founding. Now you know the framework in advance: uniformly 3,500 euros in eligible costs, with the rest depending solely on location. This makes it easier to calculate a consulting project before you even submit the application.

What does this mean for subsidized AI or automation consulting?

Eligible for funding is the consulting service itself, not the subsequent software or implementation. An AI readiness analysis, an automation concept, or a process assessment fall within the funded area, provided they are provided by a consultancy listed with BAFA. For our work, this means: we structure, for example, the introduction of AI agents or process automation as a clearly defined consulting service that meets the funding criteria. Anyone who also wants to keep an eye on regulatory requirements will find the basics in our article on the EU AI Act for SMEs.

One detail for small business owners and freelancers without input tax deduction: since November 15, 2025, BAFA takes gross costs into account in these cases, so that part of the value-added tax is now co-funded for the first time. Source: ad-hoc-news, 2025. It remains important: there is no legal entitlement to the funding, the approving authority decides within the framework of available budget funds. Each applicant may receive at most two consultations per year and a maximum of five within the duration of the guideline.

Frequently asked questions about BAFA funding 2026

How high is the BAFA cost cap in 2026?

The maximum amount of eligible consulting costs has been uniformly 3,500 euros since the turn of the year. Previously, only 3,000 euros were eligible for established companies. Costs above the cap do not harm eligibility but must be borne by the applicant.

Is there still a distinction between young and established companies?

No. The age of the company no longer plays a role for the maximum amount. The former tiered system of young companies, established companies, and companies in difficulty has been eliminated. The funding rate now depends solely on the location of the business establishment.

How much subsidy do I get in Mecklenburg-Western Pomerania?

In the new federal states, which include Mecklenburg-Western Pomerania, the subsidy amounts to 80 percent of eligible consulting costs, up to a maximum of 2,800 euros. With a consulting fee of 3,500 euros net, an own contribution of 700 euros remains.

Until when can I apply for BAFA funding?

The current funding guideline applies to applications submitted by December 31, 2026. Anyone planning subsidized consulting should submit the application in good time before the consulting begins, as approval is required before the start.