Guarantee program RS COVID-19

ProCredit Bank has concluded a Guarantee Agreement with the Guarantee Fund of Republika Srpska a.d. Everywhere on the use of the Guarantee Fund, under which the Government of the Republic of Srpska provides support to entrepreneurs and small business owners who are affected by the pandemic Covide-19th

What is the RS Guarantee Fund?

The Guarantee Fund is a fund that provides support to the development of entrepreneurship by facilitating access to financial resources needed to conduct the business activities of entrepreneurs. The mission of the Republika Srpska Guarantee Fund is to facilitate access to finance for companies by issuing guarantees. The new agreement between ProCredit Bank dd Sarajevo and the RS Guarantee Fund provides support for the financing of small and medium-sized enterprises (SMEs) affected by the COVID-19 pandemic.

Eligibility criteria for the COV-19 Guarantee Program:

• Available amount: 9,000,000 KM
• Program duration: until 31.12.2021.
• The following are eligible for funding under the guarantee program:
o all micro, small and medium enterprises, entrepreneurs, including registered agricultural holdings
o with its registered office or residence in the Republika Srpska
o who were not in financial difficulties as of December 31, 2019,
o but currently have business difficulties, which have arisen as a result of the COVID 19 infectious disease pandemic.

Basic characteristics of the program:

• Type of loan: Annuity loans
• Maximum loan amount:
• Micro enterprises 50,000 KM
• Small businesses 200,000 KM
• Medium enterprises 400,000 KM
• Loan repayment period: long-term loans up to 84 months, monthly repayment with a minimum of 3 to 12 months payment delay
• Collateral: The Fund provides coverage of 70% of the loan principal amount
• Commercial conditions: the contractual interest rate for the borrower is lower than the market interest rate
• Purpose of financing: new loans, as well as loans for refinancing, for financing the core business, for liquidity and working capital, as well as for investment costs.

What does the COVID-19 Warranty Program mean for our customers?

• Easier and more affordable access to finance for small and medium enterprises,
• Sustainability of small and medium enterprises,
• Retaining existing but also creating new permanent and seasonal jobs,
• Modernization of production lines,
• Increasing production capacity.

Find out more information about the RS Guarantee Fund from your Client Advisor or call us at 033 250 950.