PUBLIC CALL FOR GRANT FUNDING under the "Capital for Development" Subsidized Loan Program for equipment procurement and working capital

The Ministry of Economy, in cooperation with the Development Agency of Serbia and Banka Poštanska Štedionica A.D. Belgrade, is awarding grants to micro and small enterprises, entrepreneurs, and cooperatives.

The total grant amount is 220 million dinars.

The goal of the Program is to support investments, liquidity, and stimulate faster economic development.

The funds allocated by the Program are intended for subsidizing interest rates on loans for:

• Purchasing new equipment

• Permanent working capital

The following are eligible to apply for the grant competition:

1. Legal entities registered with the Business Registers Agency (APR) as companies or cooperatives, classified as micro or small legal entities in accordance with the Law on Accounting ("Official Gazette of RS", No. 73/19 and 44/21 - other law) based on their 2025 financial statements, and

2. Entrepreneurs registered with the Business Registers Agency (APR).

Loans for the purchase of new equipment are approved under the following conditions:

1. total credit line amount for the Program: 1,000,000,000.00 dinars;
2. individual loan amount: from 700,000.00 to 15,000,000.00 dinars;
3. client participation of at least 30%;
4. nominal interest rate (NIR): 6.30% per annum, fixed, calculated on a dinar loan without a currency clause (users pay 2%, and the Ministry subsidizes 4.30%);
5. repayment period including grace period: up to 60 months;
6. grace period: 6 months;
7. commission and application processing fee: up to 0.5%, subsidized by the Ministry;
8. collateral:
   • corporate promissory note;
   • personal promissory note from the owner (each founder with more than a 25% stake);
   • pledge on the equipment being purchased.

Loans for permanent working capital are granted under the following terms:

1. total credit line amount for the Program: 1,000,000,000.00 RSD;
2. individual loan amount: up to 15,000,000.00 RSD;
3. nominal interest rate (NIR): 6.70% per annum, fixed, calculated on a dinar loan without a currency clause (users pay 2% and the Ministry subsidizes 4.70%);
4. repayment period including grace period: 36 months;
5. grace period: 6 months;
6. commission and application processing fee: up to 0.5%, subsidized by the Ministry;
7. collateral:
   • corporate promissory note;
   • personal promissory note from the owner (each founder with more than a 25% stake);
   • for entrepreneurs and micro-entities for loan amounts over 2.5 million RSD, or for small entities for loan amounts over 6 million RSD, a first-priority mortgage on real estate legally acceptable to the bank and/or a pledge on equipment/vehicles and/or other collateral if acceptable to the bank.

Additional terms for both types of loans:

1. the prohibition on profit distribution by the business entity until the loan is repaid is excluded;
2. business entities may repay the loan earlier than the term defined in the agreement with the bank;
3. the bank is prohibited from imposing additional conditions on clients applying for this program compared to the terms already applicable to clients using other loans from the same bank (e.g., requirements regarding turnover volume through the bank, etc.).

The maximum amount of approved grant funding cannot exceed 15,000,000.00 RSD, nor be less than 700,000.00 RSD for loans for the purchase of new equipment.

The public call is open until the available funds are exhausted, and no later than October 9, 2026.

Applications for grant funding are submitted simultaneously with the loan application at the bank's branch/office by submitting the completed Form O1 - Application for Grant Funding, along with the supporting documentation.

The bank will only accept applications from business entities that meet all Program requirements and have submitted the necessary documentation.

Business entities may submit a maximum of one application for each type of loan under this Program.

Instructions for implementing the Subsidized Loans Program77 KB

Application Form No. 1 - Request for Grant Funding

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