Working Capital COVID-19 Measure is implemented as a temporary measure under the Working Capital loan programme, until the available subsidy funds have been completely exhausted, but not later than 31 December 2021 (loan contract is to be concluded by that date at the latest).
Borrowers have to prove negative consequences of the COVID-19 (coronavirus) pandemic, i.e. they have to obtain a COVID score that is calculated by FINA, where loans cannot be granted to those business entities whose:
*as an exception, the limitation provision regarding the repayment of loans does not relate to the loans granted in line with the purposes determined under the programme after the emergence of COVID-19 virus
* More details under item 4 – Loan Amount
Minimum amount of individual loan:
Maximum amount of individual loan in HRK equivalent value above EUR 1.8 million or loan approved pursuant to section 3.3 of Temporary Framework*** shall not exceed:
a) 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
b) 25% of total business income/revenues in 2019; or
c) With an appropriate explanation and based on a statement of final beneficiary on its liquidity needs, the amount of loan can be increased to cover the liquidity needs during the period of 18 months from the moment of approval in case of SMEs and during the period of 12 months from the moment of approval in case of large enterprises.
This method of determining maximum loan amount does not apply to loans in HRK equivalent value up to EUR 1.8 million or loans approved pursuant to section 3.1 of Temporary Framework.
*Borrowers:
– having generated at least 10% of their operating income from exports in the last business year for which official financial statements are available (exporters), or
– having generated at least 10% of their operating income from exports with one or several exporters referred to in the item above in the last business year for which official financial statements are available (exporter’s suppliers).
**Borrowers that generate income from tourism activities are the following business entities:
– the entities to which the Central Bureau of Statistics has assigned one of the following National Classification of Activities codes: 50.10 – Sea and coastal water passenger transport, 55.10 – Hotels and similar accommodation, 55.20 – Holiday and other short stay accommodation services, 55.30 – Camping ground, recreational and vacation camp services, 55.90 – Other accommodation services, 56.10 – Restaurant and mobile food serving services, 56.21 – Event catering services, 56.29 – Other food service activities, 79.11 – Travel agency activities, 79.12 – Tour operator activities, 77.34 – Renting and leasing of water transport equipment, 93.21 Activities of amusement parks and theme parks, 93.29 Other amusement and recreation activities,
– or the entities that can prove that more than 30% of their income/revenues are generated from the activities stated in the previous indent.
***Temporary Framework for State aid measures to support the economy in the current pandemic of COVID-19 (OJ C91I, 20.3.2020) and any amendments thereto; section 3.2, point 24.a and section 3.3, point 26.a.
Depending on HBOR’s capacities:
For direct loans amounting to HRK 1.5 million and above and for loans under the risk-sharing model (for HBOR’s share in the loan):
*These interest rates are interest rates paid by the borrower, while the total regular interest rate for the entire duration of the loan is 2.00% p.a. or more, fixed, depending on the regulations on the award of state aid and/or de minimis aid and the price of available sources of funding.
HBOR reserves the right to determine the level of interest rate different from the one specified in the programme for each individual loan amounting to HRK 50 million or more (i.e. equivalent value in another currency).
Other fees on HBOR’s loan share are calculated and charged in accordance with the Ordinance on HBOR Services.
Loan funds may be disbursed to the accounts of suppliers on the basis of documentation for the utilisation of loan for prescribed purposes or to the borrower’s account with obligatory justification through documentation for the utilisation of loan for prescribed purposes within 60 days from the disbursement of funds to the account.
Reimbursement of the borrower’s own funds used for purposes under this measure is allowed only for the amounts paid after 1 March 2020.
Pursuant to the rules prohibiting the accumulation of aid under the Temporary Framework, for loans granted under section 3.3 of Temporary Framework it is not possible to use collateral under section 3.2 of Temporary Framework.
