ESIF Growth and Expansion Loans are long-term investment loans for small and medium-sized enterprises that have been operating for at least two years, and plan their investments in the processing industry, tourism, creative industry and knowledge-based services.
Investment loans at low interest rates and without regular fees that are charged on the occasion of loan approval and disbursement are approved via Erste & Steiermärkische Bank d.d., Privredna banka Zagreb d.d. and Zagrebačka banka d.d.
Sources of European Structural and Investment Funds at interest rate of 0 percent
ESIF Growth and Expansion Loans are financed 50 percent out of the European Structural and Investment Funds (ESIF) at 0 percent interest rate, and 50 percent out of the commercial banks’ sources at market interest rates that will be determined by commercial banks. Such manner of financing means that the final interest rate for entrepreneurs will be significantly lower than the interest rate that would be charged if no ESIF funds were utilised.
The added value of the ESIF Growth and Expansion Loans for entrepreneurs lies in the final borrowers being relieved of the obligation to pay any fees that are otherwise charged for the processing of loan applications, the entering into loan contracts and the regular disbursing of loans.
Investment loans for Small and Medium-Sized Enterprises
Eligible final borrowers of ESIF Growth and Expansion Loans are small and medium-sized entrepreneurs that have been operating for at least two years before submitting a loan application to a commercial bank.
One entrepreneur can obtain only one ESIF Growth and Expansion Loan.
Purpose for which the funds can be approved are investments in tangible and intangible assets as well as the transfer of ownership rights, whereas up to 30 percent of loan amount can be earmarked for the financing of working capital related to the respective investment. Loans can be approved for new investments only, and refinancing of existing loans is not allowed.
Loans are approved with a 12-year repayment period (up to a 2-year grace period included), and in the tourism industry up to 17 years (up to a 4-year grace period included).
Minimum loan amount is EUR 100 thousand in kuna equivalent value, and the maximum loan amount is EUR 3 million in kuna equivalent value, or up to EUR 10 million in kuna equivalent value for the tourism industry. The total loan potential of the „ESIF Growth and Expansion Loans“ amounts to approximately EUR 200 million.
Complete text of the programme can be found here.
Roles in the Implementation of Financial Instrument ESIF Growth and Expansion Loans
On 21 December 2016, Hrvatska banka za obnovu i razvitak and the Ministry of Regional Development and EU Funds entered into the Agreement on Financing Level I for the Implementation of Financial Instrument „ESIF Growth and Expansion Loans“. Pursuant to the mentioned Agreement, HBOR is authorised to be the fund manager of the proceeds from the European Structural and Investment Funds. Through the public tender procedure, HBOR selected three commercial banks – Privredna banka Zagreb d.d., Erste & Steiermärkische Bank d.d. and Zagrebačka banka d.d. – with which on 24 October 2017 it concluded Agreements on Financing Level II for the Implementation of Financial Instrument „ESIF Growth and Expansion Loans“.
Irregularities report and objection to a commercial bank’s decision on loan refusal can be sent to the following e-mail: email@example.com.
This document has been prepared with the support of the European Union. Attitudes given in the document do not reflect the official opinion of the European Union.