Guarantees for bank loans with interest rate subsidy
GENERAL
GUARANTEES for larger investments
1
GUARANTEES FOR
GREEN /DIGITAL /CIRCULAR
PROJECTS
2
MICRO – GUARANTEES for working capital
3
Basic characteristics
- 60 or 80 % guarantees SEF for securing bank loan
- Up to EUR 1.250.000 bank loan for investment
- Up to EUR 200.000 bank loan for working capital
Purpose of funding
SEF GUARANTEES – for micro, small and medium-sized companies:
- for easier, faster and cheaper bank borrowing
-
to increase access to credit for companies that do not have sufficient collateral to secure a loan
- for providing liquidity to compete in the market
- for working capital or major investments (tangible or intangible)
The objectives of the guarantee scheme:
- to facilitate SMEs access to affordable bank financing
- to promote the growth and development of SMEs
-
strengthening the core competitiveness of enterprises by providing them with favourable financial resources to implement projects that enable them to compete in the market, improve their market position, expand their activities, and improve their working capital financing, encouraging private investment.
Funding description:
The financing process is two-step:
The company approaches a commercial bank that cooperates with SEF and applies for a loan, explaining that it will use the SEF guarantee for collateral. If the bank’s decision is positive, the company can apply for an SEF public tender and request a guarantee with an interest rate subsidy.
If the company is successful in its application for a guarantee through SEF, SEF issues it a 60% or 80% credit guarantee with an interest rate subsidy. The company is also offered more favourable loan terms.
Easy and fast procedure for obtaining a guarantee
1
Publication of the call for tenders
The SPS publishes on its website and in The Official Gazette of the Republic of Slovenia a public call for tenders to obtain a guarantee to secure a bank loan. A company wishing to obtain a SEF guarantee for a bank loan should acquaint itself with the conditions for applying in the published call for tender, which is available on the SEFs website.
2
Bank
The company visits the SEFs commercial bank and applies for a long-term loan on the grounds that it would use the SEFs guarantee as collateral. Following the bank’s decision to approve the long-term loan, the company can apply to the call for tenders at SEFs website under SEFs Guarantees to secure bank loans with an interest rate subsidy’.
3
Easy and quick submission of the online application
After successfully completing the application form, it has to be submitted via the ePortal. Applicants search for the relevant call reference for the call of tender they wish to apply for and fill in the application form as instructed.
4
Application processing and decree issuance
The SEF reviews the application. In the event of an incompletely submitted application, the SEF will urge the applicant to complete it. The complete applications, which also comply with all of the requirements set out in the call for tenders, will be approved and funded within the limits of the available funds. The SEF informs the company of its decision to grant the incentive in the form of a decision.
5
Bank
SEF notifies banks of both approved and unapproved applications. An approved guarantee application provides the basis for the bank and the company to enter into a credit agreement and, within that agreement, a credit guarantee.
6
Signing agreement with the SEF
Based on the credit agreement received, SEF enters into a guarantee and interest rate subsidy agreement with the company. The contract signing is carried out by means of a qualified digital certificate for business entities.
7
Issuance of a guarantee
SEF issues a guarantee to the bank based on a signed guarantee and interest rate subsidy agreement.
8
Bank loan drawdown secured by a SEF guarantee
The bank, acting on the credibility of the documentation provided by the company, draws on the credit secured by the SEFs guarantee.
9
Investment implementation
Expenditure incurred in carrying out the project may be made within the specified period of eligibility and in accordance with the terms of the call for tenders.
Public Fund of the Republic of Slovenia for Entrepreneurship
Short name: Slovene Enterprise Fund
Ulica kneza Koclja 22, 2000 Maribor
Tel.: 02/234 12 60
Fax.: 02/234 12 82
