BorrowersSmall, medium-sized and large enterprises in accordance with the Commission Regulation (EU) No. 651/2014 ?f 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty that fulfil the following conditions and activities (Registered activity according to National Classification of Activities 2007 – NKD 2007 (Official Gazette No. 58/07): Activities:
- Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials (C16),
- Manufacture of furniture (C31).
- Generated at least 20% of income in foreign or international markets according to the data in the latest official annual financial statements of the company;
- Borrowers should register on the digital platform of the Financial agency for monitoring the implementation of measures to help the economy due to the coronavirus pandemic (FINA portal MEASURES);
- Clients that, according to the Methodology for the calculation of COVID score of the Financial Agency (FINA) are assessed as clients whose business is endangered and there is a need for additional financing, and all COVID score values are acceptable for financing, except negative value
Purpose of LoansFinancing of salaries, overheads and other basic operating expenses (the so-called ‘idle mode’); preparation of production, purchase of raw materials, production materials, semi-products, small inventory and settlement of obligations towards suppliers and other current operating expenses; except for loan obligations towards commercial banks and other financial institutions and VAT.
Manner of ImplementationLending in cooperation with commercial banks under the risk-sharing model – Application and related documentation shall be submitted by the borrower to the commercial bank.
Amount of Loans
- The minimum loan amount is EUR 400,000.00 in HRK equivalent amount.
- The maximum loan amount is pursuant to the criteria of HBOR’s State Aid Award Programme complied with the Temporary Framework for State Aid Measures to Support the Economy During the COVID-19 Outbreak and is limited to:
- Twice the amount of annual salary expenditures of final beneficiary (including social security contributions and expenditures relating to the employees at the company location, but formally on the payroll of subcontractor) for 2019 or for the last year available. As for final beneficiaries incorporated on 1 January 2019 or after that date, maximum loan amount shall not exceed the assessed annual salary expenditures for the first two years of operations; or
- 25% of total income/revenues in 2019; or
- With an appropriate explanation and based on a statement of final beneficiary on its liquidity needs, the amount of the loan can be increased to cover the liquidity needs during the period of 12 months from the moment of approval.
- HRK indexed to EUR
Interest RateFor HBOR’s portion of the loan in the risk-sharing model, taking into account the subsidy of the Ministry of Agriculture of up to 2.00% per annum for the entire loan period, interest rate may be 0% per annum:
- Interest rate for final beneficiary is determined depending on possibilities of granting state aid according to the criteria of HBOR’s State Aid Award Programme complied with the Temporary Framework for State Aid Measures to Support the Economy During the COVID-19 Outbreak, according to which the minimum average weighted interest rate of HBOR and commercial bank must be:
- for SMEs:
- 0.51% in the 1st year of repayment
- 0.76% in the 2nd year and 3rd year of repayment
- 1.26% in the 4th year and 5th year of repayment
- for large entrepreneurs:
- 0.76% in the 1st year of repayment
- 1.26% in the 2nd year and 3rd year of repayment
- 2.26% in the 4th year and 5th year of repayment
- for SMEs:
FeesFor HBOR’s loan portion in the risk-sharing model:
- no application fee
- no commitment fee
Period and Manner of Loan Disbursement
- Up to 12 months, one-off or successively, based on the documentation evidencing the earmarked utilisation
- Up to 5 years, including a grace period of up to 1 year
Manner of Repayment
- In equal three-monthly or six-monthly instalments
- Loan insurance policy issued by HBOR as insurer for and on behalf of the Republic of Croatia pursuant to HBOR’s terms and conditions of insurance (Ministry of Finance co-finances the insurance premium up to the amount of available de minimis aid)
- Other customary collaterals in banking operations