TL;DR

• The KfW ERP Digitalization Loan (No. 511/512) finances software, implementation as well as internal and external project expenses – including ERP introduction and data migration.
• From stage 2, there is a repayment subsidy (up to 3 %), in stage 3 up to 5 % (cap: € 200,000). Always apply before the start of the project via the house bank.
• DataMigrate Pro addresses the critical path (direct migration NAV -> Business Central, parallel operation/live sync, low downtime) – these services are eligible for funding.

Why financing & migration path must now be considered together

ERP projects rarely fail because of the target software, but because of the way to get there: data quality, downtime, parallel operation and test cycles. This is exactly where DataMigrate Pro comes in: Direct migration from Dynamics NAV/Navision to Dynamics 365 Business Central, if required with bidirectional live synchronization for a time-limited parallel operation. This measurably reduces risk and project costs and fits in with KfW’s funding logic (digitalization of processes, interfaces, training).

The 511/512 program – what really counts

• Purpose of funding: Digitization projects from basic to high-end; in addition to investments, ongoing project-related costs are also eligible for funding.
• Target groups: Freelancers, SMEs and larger medium-sized companies up to € 500 million annual group turnover (levels 2/3). Level 1 only for SMEs (with digitalization check).
• Levels & subsidy: Level 1 = no subsidy; Level 2 = up to 3 %; Level 3 = up to 5 % of the loan disbursed; maximum subsidy amount € 200,000.
• Call: 511 up to 24 months, 512 up to 12 months from commitment. No commitment fee in level 2/3; in level 1 from month 7.
• Risk assumption (512): KfW assumes 50% credit risk -> facilitates financing when collateral is scarce.
• Subsidies: Interest rate reduction is aid; note subsidy value & de minimis/AGVO. Grant application (stage 2/3) together with the loan application.

Which costs are typically eligible in a DataMigrate Pro project

• Software: DataMigrate Pro licenses/editions and – if relevant during the project period – Business Central licenses.
• Implementation & Services: Migration concept, mapping/ETL routes, delta runs, validation/logging, cutover plan, training.
• Project expenses: external consultancy costs (IO Integrated) and internal personnel costs (key users/IT) within the project period (max. 24 months).

Checklist for CFO/project management

• Describe the project clearly: Objectives (time/error rate/costs), scope (data packages, integrations), parallel operation/live sync, cutover, key benefit figures.
• Determine level: Level 1 (loan only, digitization check mandatory), Level 2 (grant up to 3 %), Level 3 (5 % grant; threshold: loan > 3 % group turnover).
• Separate cost structure suitable for KfW: Software, implementation, internal & external personnel costs; project period ≤ 24 months.
• Package of documents: gBzA, SME self-declaration (if relevant), de minimis, cumulation declaration, submit grant application with the loan application.
• Timing: Application before the start of the project; no subsequent financing of measures already started.

Arguments for bank discussions (DataMigrate Pro)

• Direct migration NAV -> Business Central (without jump versions).
• Bidirectional live synchronization enables parallel operation without hard downtime. This minimizes business risks considerably.
• Validation/logging & audit-proof runs, delta handling; supports old NAV/Navision releases up to current BC versions.
• Measurably reduces project and operational risk; pays for “level-up digitization” (level 2) or, in the case of large-scale projects, also for “high-end” (level 3).

Timetable (compact)

• Pre-project (2-4 weeks): Target image, data packages, integration list, cutover plan, stage classification, funding check (cost matrix).
• Bank appointment & application: select 511 or 512; apply directly for the subsidy (level 2/3); keep all documents complete.
• Migration with DataMigrate Pro: Set up live sync, iterative delta runs + UAT, cutover, hypercare.
• Grant payment: apply via the financing partner after the loan has been paid out in full.

Conclusion

• DataMigrate Pro reduces the technical risk (direct migration, parallel operation) – this facilitates credit decisions and supports a classification in level 2/3.
• Classic mistakes: starting before the application, separating costs incorrectly, stretching the project over 24 months or choosing the wrong stage.

Note: This article does not replace advice from a bank/KfW. Funding requirements, terms and conditions and subsidy framework are subject to change. The current KfW documents and approvals are authoritative.