Liquidity loans due to the Covid-19 pandemic

Bearing in mind that it is now obvious that the Sars-CoV-2 virus pandemic has not mitigated its impact on our health and current living conditions, which is directly reflected on the economic system of the Republic of Serbia, and in the circumstances that the direct payments to employees’ accounts (which were enabled by the State Support Program) ceases during this month , it may not be too late for your company to join the Program of financial support to economic entities for maintaining liquidity and working capital in difficult economic conditions caused by the pandemic (Program).

The main required condition for the realization of these loans is that the business entity DO NOT REDUCE  the number of it’s employees by more than 10% during the period starting on March 15’th 2020 until the expiration of three months after the release of funds into use. This request is not reffering to employment contracts concluded for an definite period of time, which has expired during the mentioned time period.

The funds of the Development Fund of the Republic of Serbia may be used by entrepreneurs, cooperatives, micro, small and medium-sized companies, provided that they are (at least in majority stake) privately (non-state) owned  and  that they perform production, service, trade or agricultural activities.

The conditions under which the loan is approved are:

– repayment period up to 36 months, including a grace period of up to twelve months;

– interest rate 1% per annum;

The maximum loan amounts are as follows:

– for entrepreneurs and micro legal entities up to 10,000,000 dinars,

– for small legal entities up to 40,000,000 dinars,

– for medium-sized legal entities up to 120,000,000 dinars.

Depending on the amount of the loan you want to apply for, you will need to provide the Fund with the appropriate collateral. Here are a few examples:

– for loans up to the amount of 1,000,000 dinars, the collateral is bills of exchange of users and personal bills of exchange of all founders;

– for loans up to the amount of 2,000,000 dinars, the collateral is bills of exchange of users and personal bills of exchange of all founders and the guarantee of a natural person who is employed for an indefinite period of time;

– for loans up to the amount of 10,000,000 dinars, the collateral is bills of exchange of users and personal bills of exchange of all founders and the guarantee of a related legal entity;

– for loans in the amount of 25,000,000 dinars, the collateral is bills of exchange of the beneficiary, personal bills of exchange of all founders and the guarantee of a creditworthy business entity that is not related to the legal entity with the borrower;

– for loans in the amount of over 25,000,000 dinars, in addition to bills of exchange, a pledge on equipment owned by the borrower or the pledgor or a first-rate mortgage is required.

Please also note that an appropriate bank guarantee, manual pledge or mortgage can be a means of security for all loan amounts.

All questions regarding the Program can be asked at office@fondzarazvoj.rs

while requests are submitted in the prescribed form to the address: reception of requests_covid19@fondzarazvoj.rs