No applications are accepted and approved since February 17, 2010. At present NADSME prepares the implementation of procedure changes in compliance with an updated version of the Micro-loan Programme that was approved by the Government of the Slovak Republic in January 27, 2010, and published in the bulletin Obchodný vestník No. 32A in Feb. 17, 2010, p. 262 - 264. Further information about a call for applications will be published here, will be available also at NADSME and in selected regional centres (RAIC, BIC, FCC, Fund of Fund).
The programme does not comply with the Law No.. 231/1999 Z.z. State aid, as amended (Act No. 203/2004 Coll, which amends Act no. 231/1999 on state aid as amended and amending certain laws)
Purpose of the programme
The aim of the programme is to support start-ups and small enterprises as well as to facilitate their access to funding sources.
Criteria valid until February 16, 2010:
To apply for a micro-loan, the small entrepreneur has to meet the following requirements:
- the entrepreneur contacts or visits a selected regional centre,
- he/she submits the application and business plan,
- the business plan is analysed and assessed, the premises of the planned investment are visited and inspected,
- the decision is taken by the Micro-loan Council,
- the applicant is immediately informed about the decision. Once the application is approved, a loan agreement along with other documents is signed.
1/ Definition of SMEs according to the Commission recommendation 2003/361/EC as of 06/05/2003:
Small enterprise as defined is the enterprise that
- has fewer than 50 employees
- annual turnover does not exceed € 10 million
- annual balance sheet total does not exceed € 10 million
- meets the criterion of independence.
It is necessary to comply with limits on the number of staff. The SME may choose whether to comply with the limits set for either turnover or balance sheet total. It does not need to meet both criteria, one of them can be exceeded without losing the status of an SME. For more information, please consult the manual.
Loan amount and maturity period
- maximum amount: € 1,659.70
- minimum amount: € 49,790.88
- maturity period varies from 6 months till 4 years, with the maximum grace period for principal repayment of 6 months
- instalments are paid monthly
Micro-loan can be used for:
- the equipment by all means needed for the business, i.e. acquisition of tangible and intangible fixed assets,
- the reconstruction, adjustments and repair of operation premises,
- the acquisition of necessary stock, materials, raw materials or goods.
What cannot be funded by a micro-loan:
- repayment of existing loans,
- payment of bonuses and coverage of personal spending of the entrepreneur,
- operating costs, excluding costs connected with the purchase of material overheads necessary for the technological processes in production or services
- contributions to insurance and employment fund,
- payment of penalties and other sanctions,
- settlement of fees associated with the provision of the loan.
Interest rate
The interest rate is determined as the sum of the base rate of the European Central Bank and margin of 2% per annum. The date of the registration of an entrepreneur´s aplication at the center is decisive to determine the interest rate. However, the resulting interest rate may not fall below the reference rate for the state aid, which is the promulgation of the European Commission. The actual rate will be calculated at the regional center.
Collateral
The extent and form of the micro-loan guarantee depends on how risky the business plan is and the ability of an entrepreneur to repay the micro-loan. Most common collaterals are e.g. the title to tangible and intangible assets or other forms (blank bill, immobilization of life insurance, immobilization of insurance benefits redemption etc.). The range and type of collateral is an issue of discussion and claims within the financial programme requirements.
How to apply
The final decision on the provision of a micro-loan is preceded by the following:
- the entrepreneur visits a selected centre (RAIC, BIC, FF),
- he/she submits the application and the business plan,
- the business plan is analysed and assessed, location and/or premises of the planned investment are visited and inspected,
- the decision is taken by the Micro-loan Council,
- the applicant is immediately informed about the decision. Once the application is approved, a loan agreement along with other documents is signed.
Requirements for the submition of a mirco-loan application
The application form for a micro-loan is available with a regional centre providing micro-loans. It has to be submitted along with compulsory attachements. The list of attachements may vary according to the content and level of risk of a business plan as well as the requirements of a particular centre.
Currently, there are limited funds within the programme, the period of the approval of applications can therefore be extended. Additional funds for the programme are planned to be allocted in the first quarter of 2010.
For more information on the programme and its application procedure, please, contact the nearest regional centre in person, via phone or email.
