Bank Gospodarstwa Krajowego (BGK) restored the renewed SME Liquidity Support Loan Fund, which will contribute over PLN 1.2 billion, the bank said. During the pandemic, the total amount allocated to this fund was PLN 2 billion. The first loans will be available in July this year.
Micro, small and medium-sized enterprises can apply for a loan. The money will make it possible to finance expenses related to the maintenance of the company’s current operations, will help ensure financial liquidity and return to the development path, it said.
“Due to the great interest in anti-crisis liquidity loans, we carried out three increases of the pool of funds for this product to a total of over PLN 2 billion. Nevertheless, the demand of companies for this money exceeded the supply. Another PLN 1.2 billion will certainly help entrepreneurs restart their economic activity,” said Przemysław Cieszyński, a member of the management board of BGK.
So far, over 4,500 entrepreneurs have used liquidity loans.
Deputy Minister Małgorzata Jarosińska-Jedynak and vice-president Przemysław Cieszyński signed an agreement that will enable financial institutions selected by Bank Gospodarstwa Krajowego to grant loans. BGK will transfer some funds to financial intermediaries with whom the bank cooperated last year.
Based on the current interest, MFiPR estimates that another 1,000 people will benefit from the loans. entrepreneurs. Financial intermediaries individually set the loan amount for each company. An entrepreneur can take advantage of more than one loan, and their sum may not exceed PLN 15 million.
The main advantage of the loan is its combination with a subsidy that fully covers interest costs. In practice, the entrepreneur pays only capital installments. The repayment period will last up to 6 years and the grace period of up to 6 months,.
The source of financing for loans is the EU program REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe). It is primarily intended to support healthcare, employment and small and medium-sized businesses, while also fostering the ecological and digital transformation. The European Commission split the support into two tranches. From the first, Poland received an additional PLN 7.4 billion. The second tranche will be received in October 2021.
BGK is a state development bank that initiates and implements programs aimed at economic growth in Poland, cooperating with all development institutions, such as PFR, KUKE, PAIH, PARP and ARP. By implementing strategic development projects, BGK finances, inter alia, the largest infrastructure investments, increases Poles’ access to housing and stimulates entrepreneurship of Polish companies in the country and abroad. He is an investor in funds whose assets are managed by the Polish Development Fund. In 2018, it began its expansion by opening foreign representative offices.
Source: BGK and ISBnews
