Financial instrument for micro, small and medium-sized enterprises

The objective of the investment is to further encourage investment activity on the Croatian market by providing more favourable financing conditions for micro, small and medium enterprises in the growth and development phase, as well as supporting access to finance of specific target groups that usually do not have such access, such as micro entrepreneurs, start-ups, young entrepreneurs, investments in RDI or economic operators investing in less developed areas.

It encourages investment in new technologies, the purchase of modern machinery, equipment, and increasing production and service capacity, as well as green transition measures (such as the adoption of green technologies, the introduction of business models based on the circular economy, renewable energy sources, energy efficiency).

The instrument consists of microcredits from the Croatian Agency for SMEs, Innovation and Investments (HAMAG BICRO) up to EUR 100 000 for businesses that have difficulty accessing commercial bank loans.

Direct loans from the Croatian Bank for Reconstruction and Development (HBOR) above EUR 100 000 are intended for the target groups whose higher degree of risk restricts their access to banking funding.

Support in the form of interest rate subsidy is also part of the instrument.

Overall, over EUR 27 million is allocated to supporting environmentally friendly production processes and resource efficiency in SMEs, including over EUR 11 million to reduce greenhouse gases, more than EUR 23 million to assisting SMEs in the digitalisation of operations, and over EUR 94 million to investments aimed at strengthening competitiveness and resilience.