Ready for ILF: FAQ
Frequently Asked Questions
October 10, 2025
Your burning questions about the "Ready for Impact-Linked Finance"
program answered
(1) Are there any eligibility requirements that enterprises must meet to participate?
Yes. Our program is designed for public-benefit-oriented enterprises (German: gemeinwohlorientierte Unternehmen) that meet the EU definition of a Small and Medium-Sized Enterprise (SME) and the definition of a social enterprise as outlined in the European Commission’s Social Business Initiative.
According to the European Commission’s Social Business Initiative (COM/2011/0682, Document 52011DC0682), public-benefit-oriented enterprises are defined as organizations that:
- Have a social, ecological, or public-benefit-oriented purpose as the core objective of their business activity — often expressed through a strong commitment to social innovation.
- Clearly demonstrate this purpose in their official documents (e.g., articles of association, mission statement, or founding documents).
- Reinvest the majority of their profits (understood in this program as at least 50%) to further their social or ecological mission.
- Have an organizational structure or ownership model that reflects this mission — for example, through participatory decision-making, employee ownership, or a focus on social equity.
All of these characteristics must be fulfilled.
Small and Medium-Sized Enterprises (SMEs) are companies that meet the following criteria:
- Fewer than 250 employees
- An annual turnover of up to EUR 50 million, and/or
- A balance sheet total of up to EUR 43 million
An SME can be any entity engaged in economic activity, regardless of its legal form or funding structure. “Economic activity” means offering goods or services on a market.
After completing the Impact-Linked Finance Potential Analysis form, participants must submit two short declarations to receive their results:
- SME Declaration (German: KMU-Eigenerklärung)
- Public-Benefit Enterprise Declaration (German: SBI-Eigenerklärung)
We will ensure that this process runs smoothly for you and are happy to assist with filling out the forms if needed.
(2) Is participation in the “Ready for Impact-Linked Finance” program free of charge?
Yes, participation is free of charge if you meet the eligibility requirements listed above, as the program is funded by the Federal Ministry for Economic Affairs and Energy (BMWE) and the European Social Fund Plus (ESF Plus).
However, since the support measures qualify as state aid (de minimis aid) under Regulation (EU) 2023/2831, participating enterprises must complete a De Minimis Declaration. This declaration lists all de minimis aid received during the past three fiscal years. The total amount of such aid must not exceed EUR 300,000 within this period.
We are, of course, happy to assist you with completing this declaration if needed.
(3) Will the materials and content from the support modules be available afterwards?
Absolutely. All participating enterprises receive access to our knowledge and learning platform, where you can find:
- Workshop recordings,
- Practical templates,
- Step-by-step guidance, and
- Additional resources.
You are encouraged to continue using these materials after the program to strengthen your Impact Measurement and Management (IMM) system and to prepare for future Impact-Linked Finance opportunities.
(4) Is it mandatory to complete all three program components?
Participation in all three modules is not mandatory, but the Impact-Linked Finance Potential Analysis is a prerequisite for accessing the Impact-Linked Finance Readiness Bootcamp and 1:1 Impact-Linked Finance Preparation Coaching.
Here’s how it works:
- Impact-Linked Finance Potential Analysis: Identifies your organization’s strengths, IMM gaps, and potential for Impact Linked Finance.
- Impact-Linked Finance Readiness Bootcamp: You are guided to the Bootcamp modules most relevant to closing your identified IMM gaps.
- 1:1 Impact-Linked Finance Preparation Coaching: Enterprises with a strong ILF potential and closed IMM gaps can apply for personalized coaching.
This step-by-step approach ensures the support you receive is tailored, practical, and aligned with your organization’s Impact-Linked Finance Readiness Level.
(5) What do enterprises receive upon completion of the program?
After completing the Impact-Linked Finance Potential Analysis, you will receive an in-depth report outlining your potential for Impact-Linked Finance as well as tailored guidance on how to improve your IMM system. Participants in the Bootcamp and 1:1 Coaching modules receive Certificates of Participation acknowledging their engagement.
(6) Do participating companies receive financing from Roots of Impact?
No, neither Roots of Impact nor the Social Finance Academy (the capacity-building arm of Roots of Impact) will provide direct financing as part of this program. However, “Ready for Impact-Linked Finance” is designed to help you build the knowledge, tools, and confidence to access future Impact-Linked Finance opportunities and other funding options that reward measurable impact. We also plan to organize networking events and investor pitch sessions where participants can connect with impact investors and other funding partners.
(7) In which language is the program conducted?
The program is conducted in English. However, some members of our program team speak German, so parts of the coaching sessions or discussions can be in German if preferred.
