Government Adopts Favorable Loan Program for the Transition of SMEs

The government adopted two loan programs at its meeting on Thursday – for the industrial transition of small economy entities, worth 30 million euros.

The small loan program for industrial transition is intended for small economy entities, aiming to finance micro, small, and medium-sized enterprises, with more favorable financing conditions and the possibility of writing off part of the loan, in order to encourage investments in priority niches of regional value chains within the Smart Specialization Strategy until 2029, as well as the development of business activities in the regional economies of Adriatic, Pannonian, or Northern Croatia, reported Minister of Economy Ante Šušnjar at the government meeting.

The program is financed from the European Regional Development Fund within the Competitiveness and Cohesion program, in accordance with the Integrated Territorial Program, for which 30 million euros has been secured.

The funds will be directly approved by the Croatian Agency for Small Business, Innovation and Investment (HAMAG-BICRO) in amounts ranging from a minimum of 25 to a maximum of 100 thousand euros, with a minimum repayment period of one year, up to a maximum of 15 years, stated the Minister of Economy.

The loans are intended for investments in tangible and intangible assets, including working capital up to 30 percent of the total loan amount, with a fixed interest rate of 0.5 to 1.5 percent per annum, and among other things, Šušnjar mentioned the possibility of writing off up to 50 percent of the utilized loan amount.

The expected duration of the program is until the funds are exhausted, and no later than December 31, 2029.

Changes to the Law on Administrative Cooperation in the Field of Taxes

The government has also submitted changes to the Law on Administrative Cooperation in the Field of Taxes to the parliamentary procedure, and according to Deputy Prime Minister and Minister of Finance Marko Primorac, this is about aligning the legislative framework with European directives. Thus, it involves prescribing the obligation to provide information from reporting service providers related to crypto assets, as well as prescribing the obligation for ultimate parent companies or entities designated to submit applications with information on the supplementary tax to the Ministry of Finance, reported Primorac.