Favourable Working Capital Loans

Favourable Working Capital Loans

Favourable Working Capital Loans

In addition to the employment retention incentives issued by the Croatian Employment Bureau, Croatian Agency for SMEs, Innovations and Investments (HAMAG BICRO) from 9 December 2020 continues to approve favourable working capital loans to micro, small and medium entrepreneurs whose business is affected by the Coronavirus epidemic under amended financing criteria, as set out below.


COVID-19 working capital loans 
 Eligible users

Micro (less than 10 employees, operating income or assets up to EUR 2 million), Small (less than 50 employees, operating income or assets up to EUR 10 million) and Medium businesses (less than 250 employees, operating income up to EUR 50 million or assets up to EUR 43 million) which were active for at least 3 months in 2019, and:

  • recorded a decrease in revenues of more than 60% compared to 2019, or
  • are closed in accordance with the Decision of the Civil Protection Board of 27 November 2020

The following additional criteria have to be met:

  • Minimum of 1 full-time employee;
  • At least 50% private ownership;
  • Did not have accounts blocked more than 45 days in the last 6-month period;
  • Not a company in difficulties (e.g. pre-bankruptcy or bankruptcy proceedings, enforced liquidation procedure and similar);
  • No outstanding liabilities under other credits, loans or leasing arrangements; and
  • COVID-19 working capital loan was not previously approved.
Amount  Up to HRK 380,000 (approx. EUR 50,000) 
Interest rate  0.25%
Grace period  Up to 12 months 
 Maturity Up to 5 years including grace period 
Promissory note
  • Working capital, including VAT;
  • Prohibited use for refinancing of existing credit/ loan/ leasing liabilities, settlement of liabilities incurred prior to 2020 or refund of previously paid liabilities.