• SME Credit Line

    Shpërndaje në:

    The Credit Line of 36 million Euro, to support with soft loans the development of Albanian small and medium enterprises, will be used to finance SMEs project investments, business expansion or technology innovation.

    The Credit Line for SMEs provides for the provision of a more favourable interest rate and repayment period compared to those in the market for SMEs that want to purchase goods and services made in Italy.

    Access to Credit Line is regulated from banks and non-bank financial institutions participating in the Programme, i.e. lending institutions that have signed the Loan Agreement (On Lending Agreement) with MoFE. Thus, the financial evaluation of the request for financing is conducted in complete autonomy through banks participating in the programme.

    Who can apply?

    All entities: natural or legal persons, that own or represent micro, small and medium (SMEs) enterprises and that currently operate an entrepreneurial activity or that would like to start-up an activity in Albania.

    Eligibility criteria

    For SMEs:

    • The company is registered in Albania;
    • Not less than 51% of the company's capital is under the ownership of an Albanian citizen;
    • The annual turnover is lower than 10 million Euro;
    • The number of employees is lower than 250.

    Loan criteria for SMEs

    Project value:

    • From 50,000 Euro to 500,000 Euro.

    The scope of the loan:

    • At least 70% of loan funds should be used to purchase equipment, machineries, technologies, technical assistance, industrial licenses, maintenance, spare parts and raw materials made in Italy;
    • Maximum 10% of the loan funds can be used to purchase raw materials relevant to the principal investment;
    • Maximum 30% of the loan funds can be used to cover local costs or from other neighbouring developing countries.

    Loan criteria for small projects

    Project value:

    • From 15,000 Euro to 50,000 Euro.

    Target group:

    • Newly established micro, small and medium enterprises (Start-up) or existing ones.

    The scope of the loan:

    • At least 40% of the loan funds should be used to purchase equipment, machineries, technologies, technical assistance, industrial licenses, maintenance, spare parts and raw materials made in Italy;
    • Maximum 60% of the loan funds can be used to cover local costs or from other neighbouring developing countries.

    What cannot be financed?

    • Local taxes, custom duties, VAT;
    • Investments in the free time and entertainment sector (gambling, bars and restaurants), real estate, arms, drugs and alcoholics, tobacco and by-products, production of products forbidden by the European Union countries for import and export as per the international agreements.

    Which are the loan criteria?

    Repayment period:

    • From 3 to 8 years.

    Grace period:

    • From 1 to 2 years (only the interest rate shall be paid during this period)

     

    Interest rate applied:

    • A maximum of 3% annual interest for loans in Euro;
    • A maximum of 4% annual interest for loans in ALL;

     

    Which SMEs, Projects and Sectors are a priority to the Programme?

    Priority micro, small and medium (SME) enterprises:

    • Information and Communication Technology enterprises;
    • Enterprises owned (at least 51%) or administered by women entrepreneurs;
    • Manufacturing enterprises;
    • Exporting enterprises (exporting at least 50% of the total sales);
    • Newly established enterprises by Albanian immigrants residing in Italy.
    • Enterprises falling in industrial areas/parks;

    Priority projects/sectors:

    • Investment projects in Information and Communication Technology;
    • Projects in agriculture and agri-food sector;
    • Projects that conduct clean production with a low impact on the environment;
    • Projects that generate new jobs;
    • Projects for the generation of energy from renewable resources;
    • Projects that promote energy efficiency conservation;
    • Projects located in less developed areas of the country (outside Tirana-Durres area)

    What are the benefits of priority projects?

    A project deemed as a priority shall benefit:

    • 2 years of grace period, (only interest shall be paid); deferral principal;
    • A guarantee from the Guarantee Fund that will cover up to 60% of the required loan amount.