Public call for applications for loans secured by the guarantee of the Fund for Development and participation in free training in accordance with the program for the promotion of entrepreneurship and self-employment

The program for the promotion of entrepreneurship and self-employment (hereinafter: the Program) is implemented by the Office for the Management of Public Investments (hereinafter: the Office) in cooperation with the Fund for the Development of the Republic of Serbia (hereinafter: the Fund) and with the professional support of KFW.

The right to apply for a loan from a partner bank as well as for the allocation of grants is available to micro, small and medium enterprises (hereinafter: MSMEs) and entrepreneurs. The program also encourages financing of young entrepreneurs aged 18-35, women entrepreneurs, returnees and entrepreneurs investing in the agricultural sector. MSMEs and entrepreneurs must be beginners in business. If the business entity is already operating, it cannot exist for more than 24 months at the time of application submission.

The Office hereby invites all interested users to apply for participation in the Program.

The Program consists of 4 components:

1. Guarantee for loans approved by commercial banks that have been selected to participate in the Program through a public call. The guarantee covers 60% of each individual loan including the amount of regular interest (for a delay of up to 90 calendar days from the date of the last unpaid annuity) within the Maximum projected loan portfolio for each partner bank. The business bank retains the remaining 40% of the risk.
2. Approval of favorable bank loans by partner banks
3. Payment of grants (grant) to borrowers who meet the conditions stipulated by the Program
4. Provision of professional, free assistance and support in the development of a business plan and further business through a mentoring program implemented by the Chamber of Commerce of Serbia.

In accordance with the Program, loans approved by partner banks can be used to finance investment investments (purchase of production equipment, machines, plants, seedlings, purchase or adaptation of business or production space, etc.), to finance operating costs of business in accordance with the internal procedures and credit policy of the Bank.
Types of expenses that are considered business operating expenses of the business will be determined by the internal acts of the partner bank.
The loan funds cannot be used to finance activities whose financing is not allowed according to the latest list of such activities issued by the International Finance Corporation (IFC) and the financing of other activities whose financing would be in conflict with domestic regulations, concluded international agreements or the purpose and goals of this program. Funds from the loan cannot be used for:
- payment of loan installments as well as for loan restructuring;
- loan repayment from another bank.

Operating costs of business can participate up to 30% in the structure of the total investment investment. The conditions for investment loans will also apply to this part of the loan.

You can find everything about the conditions of participation, the application method and the deadline for submitting applications at this link.