The Transformation Guarantee programme aims to support business activities in regions that are undergoing economic change after the decline in coal mining. Through the NRB guarantee product, it will help entrepreneurs obtain bank loans to finance investment and operational projects.
“The Transformation Guarantee programme complements the already successfully implemented Transformation Loan programme with the aim of supporting the entrepreneurship of small and medium-sized enterprises. The specificity of both programmes is their regional character with a focus on transforming regions. It will facilitate access to bank financing for small and medium-sized enterprises and help them implement projects that will contribute to the even faster development of these regions,” said Tomáš Nidetzký, Chairman of the Board of Directors of NRB.
The support is provided in the form of a guarantee, which can reach up to 80% of the loan principal. The loan itself can range from CZK 500,000 to CZK 40 million. The duration of the guarantee is set at a maximum of seven years, while in the case of operating loans it may not exceed three years. The guaranteed loan must have a minimum maturity of at least twelve months. The interest rate, deferral of instalments and the method of collateral are negotiated individually between the beneficiary of the aid and the cooperating bank. The advantage for entrepreneurs is that they do not pay any fee to the National Development Bank for the duration of the arranged guarantee.
The aid applies to investment expenditure that includes the acquisition or reconstruction of tangible and intangible fixed assets, including land, the share of which may constitute a maximum of ten percent of the total eligible expenditure of the project. It is also possible to draw support for operating expenses, which must be documented by accounting or tax documents. Value added tax is also part of the eligible expenditure if it is paid by the aid beneficiary directly to the supplier.
