Framework Loans to Entrepreneurial Support Institutions

HBOR Framework Loans to Entrepreneurial Support Institutions

HBOR continues to implement the three-year pilot project for financing entrepreneurs in the earliest stages of development that was launched last year. Under the aforementioned project, the Programme for Granting of Framework Loans to Entrepreneurial Support Institutions for the Purpose of Granting Loans to Newly Established Companies and a new annual Public Call for the Selection of Entrepreneurial Support Institutions (“ESIs”) have been published, inviting ESIs to submit expressions of interest for participation within 60 days from the date of the Call publication.

HBOR will conclude framework loan contracts with the selected ESIs. From the funds that HBOR will pay to ESIs based on the framework loan contract, ESIs will grant loans to start-ups in such a way that the amount of each loan will be financed from the funds of the framework loan contract and from ESIs’ own funds in equal shares.

1. BENEFICIARIES OF FRAMEWORK LOAN

ESIs:

whose founder and majority owner is (individually or in a consortium): the Republic of Croatia, a unit of local and regional government, a higher education institution (university, university of applied sciences or college) or a scientific institute whose founder and majority owner is the Republic of Croatia or a unit of local and regional government;

and which:

belong to one of the categories according to the definition in the Act on Entrepreneurial Infrastructure Improvement - development agencies (local, county), development agencies for specific activities, entrepreneurial centres, digital innovation centres, business incubators, entrepreneurial incubators, incubators for new technologies, entrepreneurial accelerators, business parks, science and technology parks, competence centres;
are entered in the Single Registry of Entrepreneurial Infrastructure of the Republic of Croatia;
have available funds for the financing of their beneficiaries for the purpose of granting loans;
have a pipeline of beneficiaries to whom they intend to offer this type of financing;
have the developed criteria for the selection of loan beneficiaries;
can independently, professionally and transparently carry out the selection of loan beneficiaries (if ESI is not able to implement the above activities independently, their implementation can be contracted with an external service provider);
have the necessary funds (administrative and legal support) at their disposal to monitor the performance of the loan contract and report to HBOR about it.

2. PURPOSE OF FRAMEWORK LOAN

The funds of the framework loans are intended for the placement of loans to micro or small start-up entrepreneurs that are beneficiaries of the entrepreneurial support institution.

The amount of the loan from HBOR sources is limited to a maximum of EUR 100,000 per loan beneficiary. HBOR and ESIs participate in the financing of loan beneficiaries in equal amounts.

3. AMOUNT OF FRAMEWORK LOAN

The maximum amount of the framework loan for an individual ESI may be equal to the amount of available funds in accordance with the annual Call.

Available funds for each year will be allocated to all eligible ESIs in accordance with their share in the total amount of funds requested.

4. INTEREST RATE

Interest rate is equal to the interest rate valid at the time of publication of the Call for the Selection of ESIs.

5. FEES

HBOR will not charge the application processing fee for framework loan, commitment fee, or prepayment fee for placing its funds.

6. REPAYMENT PERIOD

The maximum repayment period is 36 months from the date of signing the framework loan contract.

7. COLLATERALS

ESI debenture for the total amount of the framework loan, increased by accompanying interest, fees and costs.

Collaterals are arranged as a guarantee for due fulfilment of obligations under the framework loan contract.