Supplemented HAMAG-BICRO Program for Further Financing of Entrepreneurs

The government supplemented the programs "COVID-19 loan for working capital" and "ESIF guarantees" of HAMAG-BICRO on Thursday, and as stated by Prime Minister Andrej Plenković, this will enable further financing of Croatian entrepreneurs.

Plenković initially stated at the government session that "Covid loans" have been very well utilized, with 5,128 applications received from 900 entrepreneurs, amounting to a total value of 343 million kuna.

– This is yet another of our important measures that enables the retention of jobs – said Plenković, emphasizing that the program supplement will allow further financing of Croatian entrepreneurs.

Possibility of granting support to those who have utilized existing limits of small value support

Minister of Economy, Entrepreneurship and Crafts Darko Horvat reminded that the government adopted amendments to the "ESIF micro and small loans" and "ESIF guarantees" programs of HAMAG-BICRO in March, while on April 2, a decision was made to adopt the program "Covid-19 loan for working capital".

In order to allow member states to utilize the full flexibility provided by state aid rules to assist the economy due to the Covid-19 pandemic, the European Commission adopted a document titled Communication Temporary Framework, Horvat states.

Based on the Temporary Framework, Horvat explains, HAMAG-BICRO developed a support program that was approved by the Commission on May 12, which grants support in the form of loans totaling 350 million kuna, and support in the form of guarantees amounting to 420 million kuna, which will be applicable until December 31 of this year. 

Specifically, it allows EU member states to grant state aid to micro, small, and medium-sized enterprises for financing urgent liquidity needs caused by the Covid-19 pandemic from the Temporary Framework, up to 800 thousand euros for "Covid-19 loan for working capital". Additionally, Horvat states, it allows up to one million euros for "ESIF guarantees", as well as a combination of support measures from the Temporary Framework with small value aid (de minimis aid) for financing urgent liquidity needs.

– In this way, the possibility of granting support is opened to those entrepreneurs who have utilized existing "de minimis" support limits of up to 200 tousand euros in the last three years – said Horvat.