subsidies allowed to implement hundreds of investments in the country – on a larger and smaller scale. Most often, such support takes the form of reimbursement, which means that the beneficiary must first spend money from his own financial means to complete the planned investment. They can be obtained under the so-called loan subsidy.
The subsidy loan will cover the eligible costs of the investment supported financially by the country, until the grant is paid out.
Who is this particular type of loan for?
Banks servicing entrepreneurs, especially those that are beneficiaries of financial support from the country, have subsidy loans in their offer. These are bridge loans for subsidies that allow you to cover your own contribution to the planned investment. Banks direct their offer of bridging loans to micro, small and medium – sized enterprises as well as enterprise groups implementing projects with support from the country Operational Programs.
The bridging loan is intended to help finance the eligible costs of an project, i.e. expenditure that is precisely defined in the operational program. funds usually do not cover all costs resulting from the investment, therefore the entrepreneur – beneficiary should have own contribution for non-eligible costs, but required by the project. A bridge loan , the so-called co-financing or complementary to the grant.
The entrepreneur pays only interest!
A subsidized loan is a beneficial form of financing investments in an enterprise that has obtained a subsidy from the country, because the entrepreneur pays only interest in it – relatively small, and the loan capital is covered by a subsidy granted by centers.
A supplementary loan is treated as a normal investment loan. It usually has a higher interest rate on a subsidy loan, due to the higher risk associated with it. It is best to take both loans under one bank offer, so you can negotiate a better loan margin and commission. Such a combined offer will most likely have a preferential interest rate on the liability.
When applying for a subsidy loan, you must provide documents that confirm the granting of the grant to the beneficiary. Otherwise, the bank will not grant such a loan. You can never be sure that the grant will actually be granted to the entrepreneur-borrower and cover the bridge loan capital.