NRW Digitalisation Funding 2026

The most costly mistake when applying for digitalisation funding does not occur in the application itself. It happens a week beforehand, when you sign the quotation.

For MID digitalisation, a project is defined as follows according to FAQ from NRW.BANK, a project is deemed to have started once a contract has been awarded, “even if only verbally, where applicable”. For the BAFA, the consultancy contract itself is considered the starting point. KfW and NRW.BANK want to see the loan application before the project begins. Anyone who signs too early has forfeited their chance of funding before anyone has even assessed it.

The second hurdle is outdated information. The two best-known federal programmes of recent years, go-digital and Digital Jetzt, no longer exist. What remains is smaller in scale and spread across the state, KfW and BAFA. This overview shows the status as at 9 October2026: what’s still open, what’s been closed and what’s suitable for shop, app and AI projects.

Digital Jetzt and go-digital: What has become of the federal programmes

According to announcement by the Federal Ministry for Economic Affairs on 31 December 2024; the Ministry cites the tight budgetary situation as the reason. Projects that were still approved in 2024 were permitted to be implemented and settled in 2025. New applications are no longer possible.

In the case of Digital Jetzt, the situation is even clearer. According to DLR Project Management Agency, the scheme was limited to 31 December 2023. According to note on the previous portal was taken offline on 31 March 2026; the old portal address now redirects to the DLR Project Management Agency’s homepage (checked on 9 October 2026).

Neither of the two programmes has a direct successor. The Ministry refers to the federal states’ digitalisation programmes, the network of Mittelstand-Digital centres and the KfW’s promotional loans. Anyone based in North Rhine-Westphalia will therefore mainly end up at NRW.BANK. According to NRW.BANK also offers free guidance without any financial commitment through the NRW.BANK.Innovationspartner and the “Digital in NRW” project.

The Central Innovation Programme for SMEs (ZIM), through which the federal government funds research and development projects, is also not currently an option. Since 7 July 2026 at 12 noon, according to ZIM website, a temporary suspension on applications has been in force.

Funding for digitalisation in NRW: These programmes are still available in 2026

The overview distinguishes between three types of funding: grants, which you do not have to repay; subsidised loans with a grant or repayment relief; and subsidised consultancy. When planning, the type is often more important than the amount. A grant is capped, whilst a subsidised loan grows in line with the project.

When it comes to grants, it’s striking how quickly the funds run out. NRW.BANK.Impuls AI launched on 17 August 2026; by 9 October 2026, the portal had already closed due to the high volume of applications. MID Digital Processes has reached the maximum number of applications for 2026; for the MID Assistant programme, the waiting list is closed until further notice. As of 12 October 2026, this is unchanged for all three programmes.

MID Digitalisation: up to 15,000 euros for digital products with AI

MID Digitalisation is the grant in this list that directly subsidises software development. The catch lies in the word ‘product’. Funding is available for the development or further development of digital products that are demonstrably intended for use on the market. You must use at least one of the following technologies: artificial intelligence, machine learning, data mining, real-time or high-speed processing, or AR/VR. In addition, NRW.BANK requires a specific target group and a realistic market application.

Funding is provided for three stages: the conception, prototyping and further development of a product that is novel or significantly improves the state of the art. AI-supported software that you sell or licence to customers as a product, a Minimum Viable Product with a machine learning core, or an AR application that you offer to industrial customers for maintenance and training, may fit into this framework.

For agency projects, the exclusion list in the Appendix to the Guidelines. Websites, online shops, social media and marketing tools, customer loyalty applications, chatbots and similar messaging applications, as well as functions for processing sales, such as a payment function. This applies even if they incorporate AI.

Also excluded are projects that implement legal requirements such as e-invoicing or time recording, routine modifications to existing products, hardware, standard software and pure maintenance contracts. The guideline itself has been in force since 1 January 2026 and runs until 31 December 2029, but funding is only available within the limits of the available budgetary resources.

Important for anyone familiar with MID from previous years: the guidelines were amended with effect from 1 January 2026. The ‘Digital Processes’ focus area – that is, the digitalisation of internal processes – has been removed from the MID Digitalisation scheme. It continues as a separate sub-programme, MID Digital Processes, which now only funds external consultancy and for which the 2026 funding call is already fully subscribed.

How the lottery works

The application process is in two stages. First, you submit an expression of interest via the NRW.BANK customer portal; the draws take place monthly. If your ticket is drawn, the application is activated and you have 28 days to submit it. If you are not lucky in the draw, you can register again the following month. This is not something you can plan for. Therefore, you should not base the start of any project on this grant.

The terms and conditions in the small print

• Micro, small and medium-sized enterprises as defined by the EU and based in North Rhine-Westphalia are eligible to apply.
• The grant amount is calculated based on your service provider’s net quotation. You therefore need an external service provider with relevant references; your own developers do not count.
• The grant amounts to at least 4,000 euros; the eligible costs must therefore be at least 8,000 euros.
• You must not commence work or enter into legally binding contracts with partners before the grant decision is issued.
• You must pay the costs upfront. Reimbursement is made as a one-off payment upon completion of the project and settlement of the final invoice.
• A company may only make use of this sub-programme once every two years. The duration is 3, 6, 9 or 12 months, as specified.
• Further public grants for the same project are excluded; public loans and guarantees are permitted. The grant itself constitutes de minimis aid.

In short: MID Digitalisation covers half the cost of developing a marketable AI product, up to a maximum of 15,000 euros, provided the application is successful and no contract has yet been signed. Shops, websites and chatbots are excluded.

Subsidised loans: ERP digitisation loan and NRW.BANK.Invest Zukunft

For anything larger than a prototype, the only option is a loan. That sounds less attractive than a grant. However, in stages 2 and 3 of the KfW loan and with Invest Zukunft for small and medium-sized enterprises, there is a portion that you do not have to repay.

KfW ERP Digitalisation Subsidised Loan (511/512)

KfW classifies projects into three tiers. The tier depends, according to information sheet, the level depends solely on the type of project, not on your company’s level of digitalisation. Level 1 (Basic digitalisation) covers fundamental hardware and software, is reserved for freelancers and small and medium-sized enterprises, and requires the prior completion of the KfW Digitalisation Check.

Level 2 (LevelUp) explicitly mentions digital sales channels, offerings on digital platforms and the “fundamental redesign of a company website or app with new functionalities”, as well as ERP- and CRM systems, as well as the development and implementation of a comprehensive digitalisation strategy.

You can reach Level 3 (HighEnd) in two ways: with a major Level 2 project where the loan amount exceeds 3 per cent of the previous year’s group turnover, or by utilising future technologies such as big data and AI. There is one restriction regarding AI: it must utilise internal company data. According to the guidance note, standard software with integrated AI tools does not count.

The loan amounts to up to 7.5 million euros in Level 1 and up to 25 million euros in Levels 2 and 3; where even larger SMEs with group turnover of up to 500 million euros are eligible to apply. Eligible costs include hardware and software, including implementation, as well as the associated internal and external personnel costs, including consultancy fees.

In addition, there is the ERP grant: 3 per cent of the loan amount disbursed in stage 2, 5 per cent in stage 3, up to a maximum of 200,000 euros, awarded as de minimis aid. You must submit the loan application to your bank before the project begins.

NRW.BANK.Invest Zukunft

The state-level equivalent is NRW.BANK.Invest Zukunft, an instalment loan of up to 10 million euros covering up to 100 per cent of eligible costs. Under the category ‘Digitalisation’, NRW.BANK lists, amongst other things, AI and machine learning, data-driven systems, specific business software such as ERP, CRM and ECM systems, IoT, robotics and cyber defence. Non-IT hardware is excluded.

Online shops, websites and customer apps are not included on this list. Also excluded are projects that involve only routine changes to existing products and processes, and purely replacement investments without any significant improvement.

The key incentive is the repayment relief. The amount depends on the size of the business and the eligible costs actually incurred: 20 per cent for small businesses and 10 per cent for medium-sized businesses for loans up to 1 million euros; above that, 10 per cent and 5 per cent respectively. A prerequisite is that you provide evidence of how the funds were used during the grace period. Applications must be submitted via your main bank before the start of the project, after you have registered it on the NRW.BANK customer portal.

Which funding scheme is right for a shop, app or AI project?

Funding programmes are categorised by technology and project type, whilst projects are categorised by objectives. The following table maps one to the other. It is not a substitute for funding advice, but it shows which programme you should start your discussion with.

Online shop, website or relaunch

MID digitalisation is not an option for a new or fundamentally revamped shop. The guidelines exclude online shops and websites as well as payment functions, even if AI is involved. The appropriate route is Level 2 of the ERP Digitalisation Subsidised Loan, because KfW explicitly mentions digital sales channelsand the fundamental redesign of a website or app. This provides a 3 per cent grant on the loan.

NRW.BANK.Invest Zukunft does not mention shops or websites. If the relaunch involves a more extensive integration with ERP or CRM? It is nevertheless worth asking NRW.BANK’s funding advisory service whether this aspect counts as specific business software.

By contrast, KfW classifies a version update without fundamentally new functions as basic digitalisation, i.e. Level 1 without a grant. To qualify for funding, it is therefore worth clearly describing the scope of a project within e-commerce development: which functions are new, and which channels are being added?

App or bespoke software

The deciding factor here is who uses the software and for what purpose. If the app is a standalone product that you intend to sell or licence on the market, and it incorporates AI, machine learning or AR/VR, MID digitalisation is the first option, for example for design and prototyping. A customer app for customer loyalty, marketing or sales, on the other hand, falls under the MID exclusions, even if it incorporates AI. For such apps, Level 2 of the KfW scheme applies, which explicitly covers the fundamental redesign of an app with new functions.

If it is an internal tool, such as custom software linked to the ERP system, Level 2 of the KfW loan or the ‘Invest Zukunft’ scheme under ‘specific business software’ may be suitable. In both cases, the application requires a clear description of the project. KfW requires a project outline setting out the current and target states, along with the key steps in between. Anyone who custom software development are planning this properly anyway will practically already have this document ready.

AI project

There are three scenarios when it comes to AI. Firstly: AI is embedded in a product that you intend to sell on the market. In that case, MID digitalisation is suitable. Chatbots, messaging assistants and AI functions for marketing or customer retention are not included; they are on the exclusion list. Secondly: AI is intended to operate within your own business using your own data, for example in quality control or scheduling. Level 3 of the KfW loan and the ‘Invest Zukunft’ scheme are designed for this purpose. An office suite with a built-in AI assistant is not sufficient; the KfW expressly excludes standard software with integrated AI tools.

Thirdly: You first want to find out where AI is worthwhile. The ‘Impuls KI’ scheme, offering up to 25,000 euros for consultancy and testing, was designed precisely for this purpose, but the portal is currently closed. Until it reopens, the subsidised BAFA consultancy with a neutral consultant remains the option. If the analysis forms part of a larger digitalisation project, it may also fall under the digitalisation strategy in Stage 2 of the KfW loan. Otherwise, AI consultancy is a standard project without funding.

Strategy and consultancy

The BAFA funding for management consultancy is limited but open to all. Funding covers consultancy costs up to 3,500 euros; in North Rhine-Westphalia, as a long-established federal state, 50 per cent is covered, i.e. a maximum of 1,750 euros per consultancy session. Up to two consultancy sessions per company per year and five over the duration of the scheme are permitted. It applies to applications submitted by 31 December 2026.

The consultant must be registered with the BAFA and generate more than half of their turnover from management consultancy. Furthermore, the consultancy must be impartial: Consultancy whose purpose is the purchase of services that the consultant themselves markets is not eligible for funding. An agency that subsequently intends to implement your project is therefore not the right choice for this consultancy – including us. Consultancies that focus predominantly on funding are also excluded.

Example calculation: What the grant brings in euros

The calculation example from the NRW.BANK FAQs on MID digitalisation illustrates the impact of the cap. The service provider’s quote is 31,000 euros net. Mathematically, this would result in a grant of 15,500 euros; however, a maximum of 15,000 euros will be paid out. You will have to cover the remaining 16,000 euros yourself.

Interest rate benefits are not included in the table; KfW and NRW.BANK publish the terms and conditions on a daily basis. The net amount for your own calculations will only be provided in the quotation. An initial estimate of the costs and duration for a shop, app or software can be obtained in advance using the project calculator. This allows you to assess whether a project will remain below the MID threshold or grow to the scale of a subsidised loan.

And, to be honest, the better first question is whether the project is viable even without funding. Funding should improve a project, not merely justify it. Our article on digitalisation projects that pay for themselves within twelve months.

Order: application first, then contract

All current programmes in this overview share one rule: the project must not have started before the application is submitted; in the case of MID, not before the grant notification; and in the case of BAFA, not before the information letter. In practice, this means:

1. Describe the project. Current status, target status, objective and approximate scope. A specification document provides a good basis for this; the KfW project outline asks precisely these questions.
2. Obtain a quotation, but do not sign it. With MID, the grant is calculated based on the net quotation. According to the MID FAQs from NRW.BANK, even a verbal order counts as the start of the process.
3. Select a programme and submit an application. MID: Expression of interest for the monthly draw; once successful, you have 28 days to submit the application. KfW and Invest Zukunft: Application via your main bank; for Invest Zukunft, after registration in the NRW.BANK customer portal. BAFA: Online application.
4. Wait for approval. For MID, this is the grant notification; for BAFA, the information letter from the co-ordination centre. For KfW and Invest Zukunft, the funding conditions only require that the application is submitted to the bank before work begins. However, anyone who commissions work before the loan has been approved bears the financial risk themselves.
5. Commission and carry out the work. Only now is the contract signed.
6. Submit supporting documents on time. For MID, you claim the grant after completion by submitting the paid final invoice within the deadline specified in the grant notification; for BAFA, you submit the supporting documents no later than six months after the information letter; for Invest Zukunft, within the grace period, otherwise the repayment discount will be forfeited.

Frequently asked questions about digitalisation funding

Will Digital Jetzt still exist in 2026?

No. The Digital Jetzt scheme was limited to 31 December 2023, and the funding portal was deactivated on 31 March 2026. New applications are no longer possible, and there is no direct successor.

What replaces the go-digital funding?

No single programme. The go-digital programme expired on 31 December 2024. The Federal Ministry for Economic Affairs refers to state programmes, the Mittelstand-Digital Centres and KfW. In North Rhine-Westphalia, these are primarily the MID programme run by NRW.BANK, the ERP Digitalisation Grant Loan and NRW.BANK.Invest Zukunft.

How does the lottery work for MID digitalisation?

You submit a monthly expression of interest via the NRW.BANK customer portal; the draws take place every month. If you are selected, you have 28 days to submit your application. If you are not selected, you can take part again the following month.

Is an online shop in NRW eligible for funding?

Not through the MID digitalisation scheme: the guidelines exclude online shops and websites, even those using AI. A new shop or a relaunch with new features may qualify under Stage 2 of the ERP Digitalisation Funding Loan, with a 3 per cent grant on the loan, up to a maximum of 200,000 euros. NRW.BANK.Invest Zukunft does not explicitly mention shops. You should clarify in advance with NRW.BANK’s funding advisory service whether part of the project is eligible under this scheme.

Can I combine several funding schemes?

In some cases. In addition to MID Digitalisation, other public grants for the same measure are excluded; public loans and guarantees are permitted. MID Digitalisation, the BAFA grant and the ERP funding grant are de minimisaid. Together with other de minimis aid, they must not exceed 300,000 euros over a three-year period. You should clarify in advance with the NRW.BANK funding advisory service whether a loan subsidy or repayment relief counts as a grant alongside MID.

Until when can I apply for the BAFA consultancy grant?

The current funding guidelines apply to applications submitted by 31 December 2026. BAFA has neither published nor announced a follow-up regulation for 2027 so far (as at 12 October 2026).

Conclusion

Funding for digitalisation in North Rhine-Westphalia (NRW) in 2026 is more limited than it was during the ‘go-digital’ and ‘Digital Jetzt’ programmes. For a market-ready AI product, the MID Digitalisation grant is the appropriate funding option, with the catch that it is allocated via a lottery system. MID does not fund online shops, websites or chatbots. For online shop and website relaunches, Level 2 of the ERP Digitalisation Funding Loan is the realistic option; for internal software and AI using your own data, NRW.BANK.Invest Zukunft is also available for this purpose. Consultancy is funded by the BAFA, though only on a neutral basis and only for applications submitted by the end of the year.

The order of steps matters more than the choice of programme: describe the project, obtain a quote, submit the application, wait for approval, and only then place the order. If you need a robust project description and a quote suitable for the application for your project, speak to us before you sign anything. This also applies to a quote from us.