Private sector business entities – companies, crafts businesses, sole traders, family farms, cooperatives and institutions that are young entrepreneurs, start-ups or female entrepreneurs*
*Criteria for defining youth, female and start-up entrepreneurship are available in the General Eligibility Criteria, which are a constituent part of this loan programme.
2. Purpose of Loans
- Investments in fixed assets (tangible and intangible assets) for the purpose of business start-up, business modernisation, introduction of new technologies, increase in capacities, including tourist capacities, development and introduction of new products and services, promotion of new employment, etc.
- Working capital: up to 30% of the contracted loan amount
- Natural Capital Financing Facility (NCFF) finance projects that contribute to the conservation and sustainable use of natural capital, as well as adaptation to climate change by using natural-based solutions. These projects include green infrastructure projects, green entrepreneurship, payment for ecosystem services and biodiversity offsets and compensation.
3. Manner of Implementation
- In cooperation with commercial banks (except NCFF) via commercial banks or through risk-sharing model – application and related documentation shall be submitted to the commercial bank by the borrower
- Direct lending to borrowers (except family farms that are not within the VAT system and associations) – application and related documentation shall be submitted to HBOR by the borrower
4. Loan Amount
- Generally, the minimum loan amount is HRK 200,000.00
- The maximum loan amount is HRK 2,000,000.00 and depends on the specific features and creditworthiness of the borrower as well as the purpose and structure of investment. Financing through loan can be up to 85% of the estimated investment value, VAT not included*.
- Depending on the specific features and creditworthiness of the borrower as well as the purpose and structure of investment, it is possible to finance up to 100% of the estimated investment value, VAT not included, in case of loans in the amount of up to HRK 700,000.00.
*HBOR can consider financing of 100% of the estimated investment value, VAT included, if the borrower delivers goods or provides services that are excluded from the VAT calculation or for the borrowers not operating within the VAT system.
5. Loan Currency
- HRK indexed to EUR
6. Interest Rate
|Interest rate||Possibilities of reduction||Criteria|
2% per annum, fixed
|– 0.2 percentage points||for youth employment*|
|up to – 2 percentage points||with subsidy granted by County/City/Municipality**|
|up to – 1 percentage point||NCFF Natural Capital Financing Facility***|
In certain cases, interest rate can be higher depending on the regulations on the award of state aid and/or de minimis aid.
Conditions for interest rate reduction
*Reduction of interest rate for youth employment, SME statement, Mid-Cap statement
**Reduction of interest rate with subsidy of County/City/Municipality
***Reduction of interest rate for Natural Capital Financing Facility (NCFF)
- Variable, in accordance with the Decision on Fees for HBOR Services valid on the day of calculation:
- Loan application fee: 0.50% on the contracted loan amount*,
- Commitment fee: 0.25% on the contracted undisbursed loan amount**,
and other fees in accordance with the Decision on Fees for HBOR Services valid on the day of calculation.
*For Natural Capital Financing Facility (NCFF): Loan application fee is 0.40% (minimum HRK 500.00) on the contracted loan amount, one-off, collected before loan disbursement
**For Natural Capital Financing Facility (NCFF): No Commitment fee
8. Period and Manner of Loan Disbursement
- Generally, up to 12 months. Depending on the purpose and the dynamics of investment, it is also possible to approve a longer period of loan disbursement.
- Part of the loan intended for the financing of fixed assets is disbursed to the account of seller/supplier/contractor based on the documentation for utilisation of loan for earmarked purposes
- Part of the loan intended for the financing of working capital can be disbursed to the account of the borrower, with obligatory justification by documentation evidencing the use of loan for earmarked purposes
9. Repayment Period
- Up to 12 years, with up to 3-year grace period included, depending on the purpose and structure of investment
As an exception to the mentioned, depending on the purpose and structure of investment, it is possible to approve the following repayment and grace periods:
- For the planting and/or restructuring of perennial crops in agriculture: up to 14 years, including grace period of up to 5 years
- For investments in tourism or if the investment study indicates the need for longer maturity and/or grace period: up to 14 years, up to 4-year grace period included
- Generally, in equal monthly, three-monthly or semi-annual instalments
- Lending in cooperation with commercial banks: collateral is determined by the commercial bank
- Risk sharing model: collateral is determined by the commercial bank and HBOR
- Direct lending: HBOR agrees the collateral with the borrower in accordance with HBOR’s internal documents (e.g. bills of exchange, debentures, pledge of property with insurance policy for the property endorsed in favour of HBOR, pledge of business shares, bank guarantees, EIF guarantees under EGF, guarantees of HAMAG-BICRO and other security instruments customary in banking operations), and the risk assessment of the investment and the borrower.