Low-interest loans and credits for entrepreneurs

When starting his adventure with business, an entrepreneur is faced with the problem of obtaining funds for running a business. The possibility of receiving funding from European Funds or national operational programs is often limited. Where should a young businessman look for financial support? There are several possibilities - applying for a cash loan, concluding a partnership agreement with a business angel and looking for loan offers - low-interest loans for entrepreneurs can be a good solution. The latter can be an interesting and, above all, cheap source of financing for the emerging organization.

Low-interest loans from the European Union funds

Young entrepreneurs often have problems with obtaining funds from banks, as they are reluctant to grant loans to people who do not have a credit history, whose projects are characterized by a significant risk of failure. The European Union comes to the rescue, financially supporting those initiatives that have little chance of obtaining financing from other sources. The JEREMIE program is aimed at the sector of micro and small enterprises. As part of the project, entrepreneurs can obtain low-interest loans that will certainly contribute to the development of their business.

Companies that can apply for financial support from JEREMIE:

• employ up to 250 employees,
• an annual turnover of up to EUR 50 million and a balance sheet total of up to EUR 43 million,
• are based in the voivodeship where the JEREMIE initiative operates,
• they do not have sufficient resources (security of an appropriate size) to implement the project.

The loan received with the support of JEREMIE should be allocated primarily to investments in fixed assets, modernization or computerization.

The JEREMIE loan cannot be financed with:

• other loans taken,
• public and legal obligations,
• current activities of the company.

Attention! On August 30, 2017, the JEREMIE2 initiative was launched

As part of JEREMIE2, the first contract was signed with three loan intermediaries: Wielkopolska Agencja Rozwoju Przedsiębiorczości, Fundusz Regionu Wałbrzyskiego and the Regional Development Agency "AGROREG" in Nowa Ruda. The JEREMIE agreement is gradually being signed with other intermediaries - voivodeships.

Since 2017, JEREMIE has been operating (or is to operate):

• microloan in the amount not exceeding PLN 100 thousand PLN - it can be contracted for a maximum of 5 years
• development loan up to 500,000 zloty . it can be contracted for a maximum of 7 years.

The purpose of the loans will not be specified, but the intermediaries will verify the feasibility of the intentions and the chances of repayment.

How are low-interest loans granted?

Low-interest loans are granted as follows. Money from European Funds goes to the budget of the voivodships, which should allocate part of the funds received to subsidizing the activities of small enterprises. Usually, local government administrative units establish trust funds, cooperating with financial intermediaries. If an entrepreneur wants to apply for a low-interest loan, he must go to such an intermediary, i.e. a foundation, regional enterprise development agency or a designated bank. After submitting the relevant documents, the young businessman receives a grant, which he should pay back within a specified period of time. The resources returned go back to the trust fund and are allocated to the development of further initiatives.

Low-interest loans from Bank Gospodarstwa Krajowego

Bank Gospodarstwa Krajowego (BGK) offers low-interest loans for new entrepreneurs under the "First Business - Support in Start" program. Under this program, financial intermediaries selected by BGK grant low-interest loans for:

• starting a business,
• creating a job for an unemployed person.

A young entrepreneur can apply for over 81 thousand. PLN funding.

Low-interest loans from Bank Gospodarstwa Krajowego are advantageous because their interest rate is 1/4 of the rediscount rate of the National Bank of Poland. The entrepreneur does not have to worry about the increase in the amount of the interest installment, as it will be charged according to the fixed interest rate specified in the signed contract. Within 7 years, the businessman will be able to repay the granted subsidy.

Attention! In 2017, the "First Business - Startup Support II" program was launched

The "Support in start II" program is a loan for starting a business or creating a job for the unemployed. As part of this program:

• The maximum loan amount is:
• PLN 87 thousand (about 20 times the average salary) - to start a business;
• PLN 26 thousand (about 6 times the average salary) - for employing an unemployed person,
• Preferential conditions - interest rate 0.4375% per annum.
• Repayment period up to 7 years.
• The project is organized by the Ministry of Family, Labor and Social Policy and Bank Gospodarstwa Krajowego.

Loan for starting a business

Who can apply for a loan?

• a graduate of high school or university (up to 48 months from the date of graduation or obtaining a professional title) not employed and not performing any other gainful job,
• last-year student (full-time / part-time 1st and 2nd cycle studies and uniform master's studies) not employed and not performing any other gainful job,
• unemployed - not employed and not performing any other gainful work, registered in the labor office.

What can the loan be used for?

to finance projects related to the commencement of business activities, except for the payment of social security, us, remuneration and current company expenses

Loan amount

20 times the average salary from the previous quarter - about PLN 87,000

The period for which the loan is granted

7 years, including a 12-month grace period for capital repayment

Loan interest rate

- fixed interest rate, ¼ of the rediscount rate adopted by the NBP (approximately 0.4375% per annum)

- no other fees and commissions

Collateral required

- blank promissory note and, additionally, a surety of two natural persons. Depending on the assessment of creditworthiness and credit risk, other security possible, including: mortgage, material security, bank guarantee, insurance, guarantee of one natural or legal person, life insurance

Additional terms

• the borrower undertakes not to suspend operations for 12 months.
• The borrower undertakes to maintain the activity for a minimum period of 36 months.
• Excluded from financing: production, processing and marketing of basic agricultural products, iron and steel and synthetic fiber metallurgy, fishing, mining industry, shipbuilding, arms production or trade, erotic industry, activities in the form of a commercial company, transport companies for purchase means of transport.
• In the last 12 months, the applicant has not run a business activity and has not been entered into the CEIDG.
• The applicant has not been convicted of economic offenses during the two-year period.
• The applicant has not used the available de minimis aid limit.
• Settlement of the loan up to 30 days from the date of the last expense.

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A loan for the creation of a job

Who can apply for a loan?

• companies,
• farmers with a farm or running special departments.

What can the loan be used for?

for the creation of a job for an unemployed person directed by the Poviat Labor Office, with the exception of ZUS financing and remuneration (the possibility of financing the creation of any number of jobs with the Borrower). The employed person must have a full-time employment contract.

Loan amount

6 times the average salary from the previous quarter - about PLN 26,000

The period for which the loan is granted

3 years, no grace period

Loan interest rate

- fixed interest rate, ¼ of the rediscount rate adopted by the NBP (approximately 0.4375% per annum)

- no other fees and commissions

Collateral required

- blank promissory note and, additionally, a surety of two natural persons. Depending on the assessment of creditworthiness and credit risk, other collateral is possible, including: mortgage, material collateral, bank guarantee, insurance guarantee, guarantee of one natural or legal person, life insurance.

Additional terms

• Excluded from financing: production, processing and marketing of basic agricultural products, iron and steel and synthetic fibers, fishing, mining, shipbuilding, arms production or trade, erotic industry, purchase of a means of transport for the transport industry.
• The applicant has not been convicted of economic offenses during the two-year period.
• The applicant has not used the available de minimis aid limit.
• Settlement up to 30 days from the date of spending the funds.

Low-interest loans from BGK - who can apply for them?

Low-interest loans were created for final years students, high school and university graduates in a period not longer than four years from the date of graduation. An entrepreneur who wants to benefit from financial support is not required to be registered with the Labor Office as an unemployed person. It is only necessary to submit a declaration of not performing other work.

It is also beneficial to establish a business in the form of a civil law partnership, as each of the partners may apply for individual financial support. Thanks to this, it is possible to obtain, for example, double the value of the maximum amount of a low-interest loan offered by BGK.