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BAFA Funding for SMEs: Up to a 50% Grant for Your AI Consulting Services, Available Through the End of 2026

Close the knowledge gap and leverage the latest AI features for automated workflows and intelligent analytics.

BAFA Funding for SMEs: Up to a 50% Grant for Your AI Consulting, Lighthouse Consultings

Do you already know where AI would really make a difference in your company, or are you just starting to explore this question? Small and medium-sized enterprises that want to systematically pursue this path can receive government support. Through the BAFA funding program for management consulting, a grant of up to 50 percent of consulting costs is available; approval is at the discretion of the BAFA, and there is no legal entitlement to funding. The current funding guidelines expire on December 31, 2026. Anyone wishing to take advantage of this program should therefore submit their application before the end of this year.

What is the BAFA program “Support for Management Consulting Services for SMEs”?

Through this program, the Federal Office for Economic Affairs and Export Control (BAFA) supports small and medium-sized enterprises in seeking advice from external consultants on economic, financial, human resources, and organizational aspects of business management. Essentially, this includes any individual analysis that provides concrete recommendations for action tailored to the specific company. AI, digitalization, and process consulting are explicitly included. Applications have been accepted since 2023, and the program is set to run through December 31, 2026.

Who is eligible for funding?

Companies that meet the EU definition of an SME are eligible for funding: fewer than 250 employees and either an annual turnover of no more than 50 million euros or a balance sheet total of no more than 43 million euros. Affiliated companies are included in these calculations. This means that subsidiaries of larger corporate groups are generally not eligible for funding, even if the individual location is small on its own. It is worth checking on a case-by-case basis whether your company meets the criteria.

Another key factor is the registered office or permanent establishment of the client company, not the registered office of the consulting firm. For most companies based in the former West German states—including Baden-Württemberg—the subsidy rate applicable to the former West German states applies accordingly.

How much of a grant is available?

The assessment basis is uniformly set at a maximum of 3,500 euros per consultation. On this basis, the BAFA covers:

  • up to 50 percent in the former West German states, including Berlin and Leipzig; this corresponds to a maximum subsidy of 1,750 euros
  • up to 80 percent for companies based in the new federal states (excluding Berlin and Leipzig) as well as in the Lüneburg and Trier regions, which corresponds to a maximum grant of 2,800 euros

A company may receive funding for up to five consulting services during the program’s term, with a maximum of two per calendar year. Additionally, effective November 15, 2025, companies without the right to deduct input tax will receive the grant calculated based on the gross invoice amount. Important to know: This is a non-repayable grant; approval is granted by the BAFA, and there is no legal entitlement to it.

Here's how the application process works: four steps

The process is clearly defined, but there is one tricky point: Simply signing a consulting contract is considered the start of the consulting services. Anyone who signs a contract first and submits the application only afterward loses their eligibility for funding. Therefore, the following order applies:

  1. Submit an application. The application must be submitted exclusively online via the BAFA application platform, before the consultation begins and before the contract is signed.
  2. Wait for the informational letter. The BAFA will review the application and, if the review is positive, send a non-binding informational letter.
  3. Sign the contract and begin the consultation. The consultation agreement and the consultation may not begin until the information letter has been received.
  4. Submit a statement of use. The statement of use must be submitted to the BAFA no later than six months after the date of the informational letter.

The BAFA does not provide any official information regarding processing times. Be sure to allow for sufficient lead time before you plan to begin the actual consultation.

What is NOT eligible for funding?

To avoid any misunderstandings: Not every form of continuing education is covered by this program. Training courses, seminars, workshops, and other group formats are expressly excluded. Also ineligible for funding are services that primarily consist of legal, tax, or insurance consulting; grant consulting as a standalone service; expert opinions; and operational activities such as accounting, sales, or implementation.

In concrete terms, this means the following for our own services: A Claude training session for your team is not eligible for funding as a training format in and of itself. However, the preliminary individual AI potential consultation—in which we analyze and prioritize your specific use cases—is generally eligible for funding (subject to approval by the BAFA on a case-by-case basis). The consultation is therefore the sensible first step, and the training is the logical, non-funded follow-up step that comes afterward.

How Lighthouse Consulting Can Help You

Lighthouse Consultings is listed with the BAFA as a consulting firm (UBF No. 214399). In our AI potential consulting service, we work with you to analyze where the use of AI tools like Claude creates real added value in your company, and translate that into concrete, prioritized next steps. This approach is based on the same methodology we used, for example, to achieve concrete process improvements at FEW Automotive.

We’ll guide you through the application process using our expertise, at no additional cost. As a company, you’ll submit the application yourself; we’ll keep you informed about the requirements and timeline so that you can take advantage of the deadline by the end of 2026.

Frequently Asked Questions About BAFA Funding for AI Consulting

Can I also use the grant to fund AI training for my team?

No. Training courses, seminars, and workshops are expressly excluded from funding; this also applies to Claude training. The preliminary individual AI potential consultation, in which your specific use cases are analyzed, is generally eligible for funding. The training itself follows afterward as a non-funded but useful next step.

Who submits the application—the LHC or my company?

The application is always submitted online by the client company itself via the BAFA application platform. We provide guidance throughout the process at no additional charge.

What happens if I've already signed a consulting contract?

In that case, the grant is generally forfeited. According to BAFA rules, the consultation is considered to have begun as soon as a consulting contract is signed. Therefore, always submit your application before signing the contract, and wait for the informational letter before signing.

Next step

The funding guidelines expire at the end of 2026, and the application must be submitted before the contract is signed. Anyone who would still like to have their company’s AI potential analyzed with funding in 2026 should plan for this lead time now.

Schedule a no-obligation initial consultation. Together, we’ll determine whether your company is eligible for funding and what the specific process will look like for you. You can find more details and frequently asked questions on our funding page at /foerderung/.

Schedule an initial consultation now

About the author

Nico Röpnack

CEO of Lighthouse Consultings | Member of the Forbes Business Council

Nico Röpnack brings 20 years of operational experience in the manufacturing industry (including BMW, VOSS, and MAGNA). He is currently a Smartsheet Gold Partner, a lecturer on digital transformation at DHBW, and a member of the Forbes Business Council.

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