Regional and Subregional Loan Funds (part 1) - General information

Service Business

Own company is often a good alternative or supplement to full-time work. However, a good idea and willingness are not all that a starting entrepreneur needs. The most important and often the most problematic issue is capital, or rather where to get it. Contrary to appearances, there are many options - starting from loans, loans with a guarantee, seed funds, so-called Business Angels, ending with all sorts of regional aid.

For those entrepreneurs who have not managed to get a loan, regional loan funds may be a good solution. We invite you to read the series of articles on Regional and Subregional Loan Funds. In the first part, we explain what exactly they are, who can benefit from them and what entrepreneurs can benefit from.

Help from the Polish Foundation of Entrepreneurship

The Polish Entrepreneurship Foundation (PFP) is an organization operating since 1997, supporting the creation and development of micro, small and medium-sized enterprises from all over Poland, with particular emphasis on companies from the area of ​​North-Western Poland.

In its activities, PFP helps to finance, in particular, trading and investment activities as well as the initial stage of development of companies. This type of support is carried out under two projects - the Jeremie Initiative and Regional and Subregional Loan Funds.

The Foundation helps micro, small and medium-sized enterprises from the voivodeships:

  • West Pomeranian Voivodeship,
  • Greater Poland,
  • Kuyavian-Pomeranian Voivodeship,
  • Lubuskie,
  • Pomeranian,
  • Lower Silesia,
  • Łódź,

who cannot use traditional bank financing, e.g. due to insufficient collateral or due to the lack of credit history.

Loan funds - who is the aid intended for?

Each of the above voivodships have an individually prepared program of financial aid for micro, small and medium-sized enterprises. In all cases, an entrepreneur applying for a loan under the Regional and Subregional Loan Funds must meet strictly defined criteria:

  • cannot employ more than 50 employees,
  • should have its seat in a specific voivodeship,
  • its activity should be conducted for at least 3 months,
  • the purpose for which the loan is to be intended should be clearly defined by him,
  • must have the ability to repay the loan,
  • his operating strategy should be good, and what blocks the development of his company is the lack of financial resources,
  • his activities may relate to all industries, with the exception of the agricultural sector, armaments and industrial activities defined as harmful to the environment and unethical.

Loan funds - what are the conditions to be met?

As part of the Foundation's support, it is possible to grant loans up to a maximum of PLN 500,000. zloty. The loan repayment period is 36 months from the date of signing the contract. Importantly, there is a grace period for capital repayment and it is 6 months. Depending on the needs and individual circumstances, the entrepreneur may apply for a loan with a repayment period of up to 60 months.

As previously mentioned, the loan can be used for both investment and working capital purposes. The minimum entrepreneur's own contribution should be 20%. the value of the venture.

The cost of the loan granted to the entrepreneur is interest. The interest rate on the loan granted as part of the Foundation's project depends on market interest rates, and at the same time it cannot be lower than the reference rate, in accordance with the method of its determination set out in the Communication of the European Commission. Loans bear interest at the reference rate in force on the date of the loan agreement plus a maximum of 3.0 percentage points of the fund's annual margin.

In addition, a handling fee of up to 5% is charged on the granted loan. the amount of the loan granted.

The security for the loan may consist of:

  • blank promissory note with a promissory note declaration,
  • surety of the credit guarantee fund,
  • transfer of ownership of goods purchased by the entrepreneur or other goods of himself or a third party with the assignment of an insurance policy,
  • surety by third parties,
  • mortgage,
  • other property security.

How to get a loan from the Polish Foundation of Entrepreneurship?

If the entrepreneur meets the above-mentioned conditions and is interested in obtaining a loan from PFP, then he should submit the application, along with the required documents in:

  • the seat of the Polish Foundation of Entrepreneurship,
  • Branch or Fund Service Point competent for a given poviat.

Due to the fact that funds, like other financial institutions, analyze the creditworthiness, financial situation and profitability of business activities and the risk of granting support, in addition to the appropriate loan application, the entrepreneur should prepare:

  • asset declaration,
  • financial data for entrepreneurs with full / simplified accounting.

Due to the fact that the fund must know what the loan funds will be used for, it is necessary to prepare information on the project being implemented. On this basis, an assessment will be made as to whether the entrepreneur's project meets the criteria for granting aid.

In addition, the following should be attached to the loan application:

  • a statement of the borrower and the surety,
  • checklist of annexes to the application.

The template of the application and attachments can be found on the website of the Polish Entrepreneurship Foundation.

What are the advantages of a loan from a regional fund?

The advantages of this form of financing certainly include the fact that the funds use significantly simplified procedures, therefore waiting for a decision and obtaining a loan is much shorter. An example of facilitation in the case of a loan for investment purposes is the lack of the need to provide a business plan.

Moreover, among the benefits that an entrepreneur obtains from using the aid of the regional fund is the fact that the own contribution to the investment is relatively low compared to the requirements of other financial institutions. Another advantage is the possibility of a fairly flexible adjustment of the form of loan repayment security.

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List of programs available under the Regional and Subregional Loan Funds

Each voivodeship has prepared aid programs that can be used by entrepreneurs living in a given region:

West Pomeranian voivodeship:
- POMERANUS Regional Loan Fund
- Loan projects covered by the JEREMIE initiative

Greater Poland Voivodeship:
- Subregional Loan Fund WIELKOPOLSKA PÓŁNOC
- Loan projects covered by the JEREMIE initiative,

Kuyavian-Pomeranian Voivodeship:
- KUJAWIAK Subregional Loan Fund,
- Subregional Loan Fund KUJAWIAK-INWESTYCJE,
- Project entitled KUJAWIAK-JEREMIE Loan Fund,

Pomeranian Voivodeship:
- GRYF Subregional Loan Fund,
- Loan projects covered by the JEREMIE initiative,

- ODRA Subregional Loan Fund,

Lower Silesia:
- Subregional Loan Fund LOWER SILESIA,
- Loan projects covered by the JEREMIE initiative,

Lodz Voivodeship: