FAQ Youth, Female, Start-Up and Other Special Segments Entrepreneurship
1. Who can be the borrowers?
Borrowers are micro, small and medium private sector business entities - companies, crafts businesses, sole traders, family farms, cooperatives and institutions belonging to one or several of the following categories:
2. What are the defined conditions for persons considered to be young entrepreneurs, female entrepreneurs and start-ups?
Loans are intended for:
4. What are the manners of implementation?
Financing is possible in cooperation with commercial banks (via commercial banks or through risk-sharing model) - the application and related documentation shall be submitted to the commercial bank by the borrower, as well as 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. More information can be found in the Loan Programme.
5. What is the minimum amount and the maximum amount of the loan?
Generally, in case of direct loans through HBOR, loans in the amount lower than EUR 100,000 are not approved, while in case of loans on-lent via commercial banks, loans in the amount lower than EUR 50,000 are generally not approved. Loans approved under the risk-sharing model with commercial banks - HBOR’s share in a loan can generally not be lower than EUR 100,000.
Maximum loan amount equals EUR 400,000, depending on the specific features and creditworthiness of the borrower as well as the purpose and structure of investment, whereby:
6. Are there any fees for loan application processing and other fees?
Variable, in accordance with the Ordinance on Fees for HBOR Services valid on the day of calculation:
7. What are the loan disbursement period and the loan disbursement manner?
The disbursement period is generally up to 12 months. Depending on the purpose and dynamics of investment, it is also possible to approve a longer period of loan disbursement.
The manner of loan disbursement is as follows: part of the loan intended for the financing of fixed assets is disbursed to the account of the seller/supplier/contractor based on the documentation for utilisation of loan for earmarked purposes, while the 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.
8. What are the loan repayment period and the manner of repayment?
The loan repayment period depends on the purpose and structure of investment: up to 12 years, including grace period of up to 3 years. 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:
9. What are the collaterals?
In case of lending in cooperation with commercial banks, collateral is determined by the commercial bank, whereas in case of lending under the risk-sharing model, collateral is determined by the commercial bank and HBOR. In case of direct lending through HBOR:
Borrowers are micro, small and medium private sector business entities - companies, crafts businesses, sole traders, family farms, cooperatives and institutions belonging to one or several of the following categories:
- Young entrepreneurs
- Female entrepreneurs
- Start-ups
- Entrepreneurs investing in the following areas: supported areas (groups I to IV by the level of development (Act on Regional Development of the Republic of Croatia, Decision on Classification of Units of Local and Regional Government by the Level of Development), hill or mountain areas of the 1st group (Act on Hill or Mountain Areas and the Decision on Coverage and Classification of Units of Local and Regional Government Acquiring the Status of Hill or Mountain Area), the islands of the 1st group (The Islands Act)
- Entrepreneurs investing in the commercialisation of projects based on research, development and innovations (RDI)
2. What are the defined conditions for persons considered to be young entrepreneurs, female entrepreneurs and start-ups?
- Young entrepreneurs- Business entities in which one or several young persons together have more than 50% of ownership, where a young person is considered to be the one who has not yet reached the age of 41 on the date of submission of loan application.
- Female entrepreneurs- Business entities in which at least one or several women jointly have more than 50% of ownership and are also managed by a woman. In the case of a company that is not a micro or small business, a woman or women together may have less than 50% of ownership, provided that at least one woman holds a key management position related to finance and/or operations and/or strategy.
- Start-ups- Micro, small and medium-sized business entities that have just been established or have been operating for less than 3 (three) years on the date of submitting the loan application. Beneficial owners (natural persons) with a majority share in the business entity have not previously been or are currently owners or co-owners of another business entity with a share greater than 30%.
Loans are intended for:
- 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 tourism capacities, development and introduction of new products and services, promotion of new employment, etc.,
- Investments in fixed assets (tangible and intangible assets) for the purpose of recovery from the consequences of earthquake, promotion of the economic development of Sisak-Moslavina County and promotion of economic development of Lika-Senj County.
- Working capital up to 30% of the contracted loan amount.
4. What are the manners of implementation?
Financing is possible in cooperation with commercial banks (via commercial banks or through risk-sharing model) - the application and related documentation shall be submitted to the commercial bank by the borrower, as well as 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. More information can be found in the Loan Programme.
5. What is the minimum amount and the maximum amount of the loan?
Generally, in case of direct loans through HBOR, loans in the amount lower than EUR 100,000 are not approved, while in case of loans on-lent via commercial banks, loans in the amount lower than EUR 50,000 are generally not approved. Loans approved under the risk-sharing model with commercial banks - HBOR’s share in a loan can generally not be lower than EUR 100,000.
Maximum loan amount equals EUR 400,000, depending on the specific features and creditworthiness of the borrower as well as the purpose and structure of investment, whereby:
- in the case of HBOR’s direct loans, it is possible to finance up to 85% of the estimated investment value, VAT not included
- in the case of loans on-lent through commercial banks, it is possible to finance up to 100% of the estimated investment value, VAT not included
6. Are there any fees for loan application processing and other fees?
Variable, in accordance with the Ordinance 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,
7. What are the loan disbursement period and the loan disbursement manner?
The disbursement period is generally up to 12 months. Depending on the purpose and dynamics of investment, it is also possible to approve a longer period of loan disbursement.
The manner of loan disbursement is as follows: part of the loan intended for the financing of fixed assets is disbursed to the account of the seller/supplier/contractor based on the documentation for utilisation of loan for earmarked purposes, while the 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.
8. What are the loan repayment period and the manner of repayment?
The loan repayment period depends on the purpose and structure of investment: up to 12 years, including grace period of up to 3 years. 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, including grace period of up to 4 years.
9. What are the collaterals?
In case of lending in cooperation with commercial banks, collateral is determined by the commercial bank, whereas in case of lending under the risk-sharing model, collateral is determined by the commercial bank and HBOR. In case of direct lending through HBOR:
- Obligatory collaterals: bills of exchange and debentures of the borrower, guarantors-payers and co-debtors, and
- Other security instruments, depending on HBOR’s estimation:
- Pledge of property to be financed out of the loan, with insurance policy for the property insured against usual risks, endorsed in favour of HBOR, and/or
- HAMAG-BICRO guarantee, and/or
- Other collaterals in accordance with HBOR’s internal documents (e.g. immovable property, moveable property, guarantees, warranties, assignments, pledge of business shares, patents and other security instruments customary in banking operations.