ESIF Growth and Expansion


  • small and medium-sized enterprises that:
    • operate in the territory of the Republic of Croatia,
    • have been operating at least 2 years before the submission of loan application,
    • meet all eligibility criteria,
    • plan to invest in eligible sectors.
Eligibility terms and conditions and eligible sectors have been listed in the complete wording of the loan programme. Under this programme, eligible borrowers are also special purpose vehicles whose owners or founders meet all of the above mentioned criteria.

Purpose of loans

Loans are intended for new investment as follows:
1. Fixed assets  
Long-term tangible assets
  • initial funding
  • purchase of land (up to 10% of loan amount)
  • buildings (purchase and/or construction)
  • equipment and devices
Long-term intangible assets
  • if used in business unit receiving aid
  • if accounted for as assets that are amortised
  • if purchased at market prices from third person not related with buyer
  • if included in property of entrepreneur receiving aid and remain related to project receiving aid at least for 3 years
2. Working capital
  • if related to investment financed by the loan, up to 30% of total loan amount

Manner of implementation

  • Via commercial banks*
Erste & Steiermärkische bank d.d.
Privredna banka Zagreb d.d.
Zagrebačka banka d.d.

*Banks have been selected through public procurement procedure.

Loan amount, disbursement period and repayment

A loan is funded from the proceeds provided by ESIF and commercial banks in proportion 50:50.

Portion of loan funded from ESIF sources can be in kuna or in kuna indexed to euro, whereas portion of loan funded from commercial bank sources is committed in kuna indexed to euro.

Enterprise must provide its own share in loan of at least 15% of investment amount, VAT not included.
Loan amount
  • from EUR 100,000 to EUR 10,000,000
Grace period
  • up to 2 years (as an exception for tourism industry, up to 4 years)
Repayment period
  • up to 12 years, grace period included
  • as an exception for tourism industry, repayment period of up to 17 years may be considered, grace period included
  • as an exception, the above repayment and grace periods can be extended for the borrowers whose operations are endangered as a result of COVID-19 pandemic in accordance with the measures of the Government of the Republic of Croatia aimed at preserving the level of economic activity and liquidity

Treatment of ESIF aid: It is not allowed to cumulate aid from the proceeds of ESIF on the same project, which means that this loan cannot be combined with:
  • ESIF grants, neither as pre-investment nor as co-investment;
  • other ESIF financial instruments, such as HAMAG-BICRO guarantees;
  • other financial instruments, such as HAMAG-BICRO guarantees financed from the state budget.


On the part of loan principal from ESIF funds
  • 0%
On the part of loan principal from commercial bank's funds
  • in accordance with commercial bank's business decision


Under this loan programme, borrowers are exempt from paying all fees that are usually charged for the processing of applications and the commitment of funds.


When entering into a loan under this loan programme, for the purpose of securing due fulfilment of loan obligations, collateral is agreed in accordance with assessment/request of commercial bank, and for the recovery of awarded regional aid and de minimis aid: 2 (two) debentures of the enterprise, where the amount of both debentures is the sum of aid in kuna.

Roles in the implementation of "ESIF Growth and Expansion Loans" financial instrument

On 21 December 2016, the Croatian Bank for Reconstruction and Development 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 above Agreement, HBOR is authorised to be the fund manager of the proceeds from the European Structural and Investment Funds. Through the public procurement procedure, HBOR selected three commercial banks – Privredna banka Zagreb d.d., Erste & Steiermärkische Bank d.d. and Zagrebačka banka d.d. – with which HBOR concluded Agreements on Financing Level II for the Implementation of Financial Instrument "ESIF Growth and Expansion Loans" on 24 October 2017.


Irregularity reports and complaints on loan rejection decisions made by commercial banks can be submitted to the email address:



Strossmayerov trg 9, 10000 Zagreb

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