Who meets the application requirements?
Companies registered in the country which meet the criteria for small and medium-sized enterprises pursuant to the Act on Small and Medium-Sized Enterprises.
What investments meet the requirements for financing?
Every economically sound and environmental investment in the country in the area of industry (including processing of agricultural products), tourism, energy, transport, telecommunications, services, territorial and urban development and others.
The following may be subject to investment:
- Infrastructure facilities;
- Purchase of land and buildings;
- office and store equipment;
- purchase of machines, equipment and vehicles (including used);
- purchase of non-tangible assets (i.e. licenses, patents);
- turnover capital as part of the financed investment loan.
The following do not meet the requirements for financing:
- purchase and sale of securities or other purely financial transactions and purchase of shares and packages of shares of enterprises;
- agriculture;
- military industry;
- housing construction and construction of administrative buildings and office for non-commercial purposes;
- general education;
- tobacco processing and trade;
- gambling;
- processing of certain agricultural products
Project value
What amount of funding may be extended?
The total value of the project applying for financing may not be less than EUR 40 000 and more than EUR 10 000 000. The amount of the borrower’s participation in the financing of the project should be minimum 25% (VAT exclusive) of its value. The minimum amount of each loan is EUR 20 000 and the maximum amount is EUR 1 000 000 or the equivalent in each currency, actively traded on the international financial markets.
Loan conditions
The loans are extended for a period of 4 to 10 years.
Grace period up to 3 years.
Interest rate - according to the risks of the project and the term of return on the investment.
Interest on the loan is due quarterly.
Repayment of the principal starts after the grace period and is negotiated individually with each borrower.
What collateral is required?
The collateral is in accordance with the banking legislation.
Under certain conditions the bank extends loans under relieved requirements for collateral (up to 85% of the amount of the loan) owing to a guarantee issued by the European Investment Fund under the multi-year programme for small and medium-sized enterprises of the European Community.
Assets that are subject of the investment project are also acceptable as collateral of the loan.
