Working Capital Loans through Framework Loans to Banks

1. Borrowers

  • Micro, small and medium-sized entrepreneurs (SMEs) in accordance with the Small Business Promotion Act, including natural persons performing a registered activity (crafts businesses, sole traders, family farms) and mid-cap entrepreneurs (from 250 to 3000 employees) who were not in difficulties on 31 December 2019
  • Entrepreneurs applying for a loan should, in accordance with the Methodology for the Calculation of COVID Score of the Financial Agency (FINA), be assessed as clients whose business is endangered, who need additional finance and whose COVID Score is of any value except the negative one
  • Entrepreneurs who meet the General Eligibility Criteria of HBOR, where it is allowed to finance the following activities: publishing of newspapers and other periodicals, radio and television programme activities and broadcasting, news agency activities and service activities of advertising and public relations agencies

 

2. Purpose of Loans

  • Financing of salaries, overheads and other basic operating expenses (the so-called ‘idle mode’), purchase of raw materials, settlement of obligations towards suppliers and other current operating expenses
  • Loan funds cannot be used for the settling of existing loan obligations towards commercial banks or other financial institutions

 

3. Manner of Implementation

  • Through commercial banks

 

4. Amount of Loans

  • The minimum loan amount is not limited, the maximum amount may be HRK 35 million
  • The maximum amount of a single loan must not exceed:
    • Twice the amount of annual salary expenditures of the 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 18 months for SMEs and 12 months for large corporates from the moment of approval.

 

5. Loan Currency

  • HRK indexed to EUR

 

6. Interest Rate

  • According to the commercial bank’s decision, reduced by 0.75 p.p.

 

7. Fees

  •  Determined by the commercial bank

 

8. Period and Manner of Loan Disbursement

  • Determined by the commercial bank

 

9. Repayment Period

  • Determined by the commercial bank
  • At least 1 year, the grace period included
  • Total loan period: maximally 6 years (from the date of the loan contract until the final loan repayment date)

10. Collateral

  • Determined by the commercial bank

11. Related Documentation

 

*Exceptionally, the following can be financed through the loans: publishing of newspapers and other periodicals, radio and television programme activities and broadcasting, news agency activities and service activities of advertising and public relations agencies

 

12. Commercial Banks Included in the Cooperation under the Programme

Addiko Bank d.d.
Zagreb

Erste & Steiermärkische bank d.d.
Rijeka

Hrvatska poštanska banka d.d.
Zagreb

OTP BANKA d.d.
Split

Privredna banka Zagreb d.d.
Zagreb

Raiffeisenbank Austria d.d.
Zagreb

Sberbank d.d.
Zagreb

Zagrebačka banka d.d.
Zagreb